Top NASCAR teams are unhappy with the chain’s current business model, calling it “broken” and warning that it has little chance for long-term sustainability, according to one Related press reported on Friday.
According to reports, as the top NASCAR Cup Series team headed to Charlotte Motor Speedway for a playoff race at the oval track/hybrid car, the teams went public with their yearlong battle with NASCAR over what it considers an unfair distribution of revenue, according to the report.
Curtis Polk, Michael Jordan’s business manager and part owner in Racing 23XI NBA legends team started with NASCAR driver Denny Hamlin, said in a presentation by the Alliance Race Team, which holds negotiations with NASCAR on behalf of the teams, which was covered by AP.
2022 NASCAR Cup Series Hollywood Casino 400 at Kansas Speedway
The presentation was made by a four-member subcommittee, with representatives from 23XI, Hendrick Motorsports, RFK Racing and Joe Gibbs Racing (JGR). Jeff Gordon, four-time champion and vice president of Hendrick Motorsports, said the team hasn’t had a profitable season in years. That is despite Hendrick drivers Chase Elliott and Kyle Larson winning the Cup Series championships in 2020 and 2021 respectively.
“I have a lot of fear that sustainability is going to be a real challenge,” says Gordon.
Unlike Formula 1, where teams actively negotiate with management to share in the revenue, NASCAR is essentially a private business controlled by the French family, with the greatest leverage. TV revenue is officially split between NASCAR, teams and track, but NASCAR gets 93% of that, as opposed to a 50/50 ratio in F1, Polk said.
2022 NASCAR Cup Series Cook Out Southern 500 in Darlington
NASCAR introduced a “charter” system in 2016, which is essentially a limited number of 36 car seats that teams can buy and sell, but teams rely primarily on sponsorship agreements that don’t predictable funding. That unpredictability is highlighted by the withdrawal of Mars Inc., which has been a sponsor of NASCAR since 1990. This left JGR scrambling to find sponsors for two-time champion Kyle Busch, who signed with Richard Childress Racing and will leave JGR after 15 seasons.
NASCAR is also criticized by drivers who blame the stiffness of the new Next generation car As for the high level of injury in recent races, there are three full-time drivers who are currently sidelined. Now in its first season, the Next Gen car is the first new NASCAR racer since 2014 and introduces hardware such as sequential movement wheels and central locking that help give the Series Cup a better fit. other racing series.
In addition to the Next Gen vehicle, NASCAR contemplated other changes to its traditional format. One Chicago street race—The first of its kind for the Cup Series — scheduled for July 2023. Organizers are also looking into it. hybrid powertrain and a electric race series along with the Cup Series. But cash-strapped teams and potential safety issues seem like problems NASCAR will need to address first in order to survive.