NASCAR: Cup teams say NASCAR’s Financial Model not sustainable

According to NASCAR’s top teams, they struggle to avoid going belly-up.

Team executives are seeking more money from media contracts and other changes to the sport.  They can start with less races per year, which would significantly reduce costs.

But if they did the France Family, that owns most of the tracks, would pocket less money every year.  They are multi-billionaires, yet suck the series dry.

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.  The France family owns most of the tracks, so of course they are paying themselves 65%, plus 10% = 75% of the pot. Talk about greed!
• Teams are seeking a bigger slice of the pie, or fewer races to reduce cost, starting with the 2025 season.

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.

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.