One of America’s most iconic sports leagues is in fiscal trouble, according to its top teams.
Team executives are seeking more money from media contracts and other changes to the sport.
Hendrick Motorsports vice chairman Jeff Gordon, Joe Gibbs Racing president Dave Alpern, RFK Racing president Steve Newmark, and 23XI Racing investor Curtis Polk spoke to the media on Friday in Charlotte, North Carolina, after negotiations stalled.
“The sustainability of the teams in this sport is not very long-term unless we have a fundamental change in the (business) model,” said Polk.
- The core issue presented by the teams is that the bulk of their revenue — generally 60-80% —comes from sponsorships.
- Teams receive 25% of the revenue from NASCAR’s media deals, compared to 65% to tracks and 10% to NASCAR.
- Teams are seeking a reworked arrangement, starting with NASCAR’s 2025 charter.
Racing teams sent a seven-point proposal which included a new revenue-sharing model to NASCAR earlier this year, but did not receive a favorable response.
New Car, New Problems
Gordon said that Hendricks hasn’t been profitable in years and won’t be again this season, despite success on the track and NASCAR’s new, less expensive Next Gen car.
The car has raised safety concerns: Three full-time drivers were unable to compete in Sunday’s playoff race at Charlotte Motor Speedway due to injuries sustained while driving the Next Gen.