Having only been involved in car racing for under three years, former NBA player Michael Jordan, a NASCAR Cup Series car owner, has some advice for the league, and if they don’t listen to his words, he predicts that the “sport’s going to die.”
According to CBS News, a recent change in revenue sharing and new charter rules have placed NASCAR on a path of not being profitable for car owners. The media outlet reported that the league is negotiating with the 36 team owners
about renewing a charter system put in place in 2016. All teams are guaranteed a spot in each Cup Series race under the current rules. The owners are striving to make the current charter arrangement permanent, as the agreement expires at the end of the 2024 season on Nov. 10.Jordan, owner of 23XI Racing, commented on what he feels would make the business grow and ensure that the car owners and NASCAR have a “good partnership” at the end of the day.
“If
you had permanent charters, then you could create a revenue stream, either with new investors or different types of sponsorships that would subsidize that type of variance between ownership and the league,” Jordan told The New York Times. “That’s a big, big miss right there. If you don’t correct that, this sport’s going to die not because of the competition aspect, but because economically, it doesn’t make sense for any businesspeople.”Jordan then stated that everyone should be making money, not just NASCAR.
“In all
partnerships, if you grow the pie, that means your business is going to continue to grow. And to grow the pie, you’ve got to make sure everybody’s healthy within the partnership. If our ownership in NASCAR is losing money and NASCAR’s the only one making money, that’s not a good partnership.”Sports Business Journal reported that NASCAR COO Steve O’Donnell stated they are very close to inking a new deal.
“Ultimately, when our owners look at where the sport’s potential is in terms of all the new media partners, the balance that we do have with linear and now being able to go with the Amazons, [TNT Sports], all the opportunities we have with content, I think they get it,” O’Donnell said. “Everyone wants to sit down and argue over who’s going to split the money the right way, but ultimately we’ll get to a good place.”
It’s been reported that NASCAR offered to extend the charter system for an additional seven years, but the team owners would rather it be permanent.