May 3rd 2024.
After only three years of being involved in car racing, former NBA player Michael Jordan, who now owns a NASCAR Cup Series car, has some valuable advice for the league. He strongly believes that if they don't take his words seriously, the sport is in danger of dying.
According to CBS News, a recent change in revenue sharing and new charter rules has caused NASCAR to become unprofitable for car owners. This has led to negotiations between the league and the 36 team owners about renewing the charter system, which was put in place in 2016. Under the current rules, all teams are guaranteed a spot in each Cup Series race. However, the owners are pushing for a more permanent agreement, as the current one is set to expire in 2024.
As the owner of 23XI Racing, Jordan shared his thoughts on what he believes would help the business grow and create a strong partnership between the car owners and NASCAR. He emphasized the importance of having permanent charters, which would bring in a steady revenue stream through new investors and sponsorships. Without this, he fears that the sport will not make economic sense for any businessperson, and will eventually die out.
Jordan also stressed the need for everyone involved in NASCAR to benefit financially, not just the league. He believes that in any partnership, the key to success is to grow the pie, meaning that all parties must be healthy and thriving. If the team owners are losing money while NASCAR is making a profit, it's not a sustainable or fair partnership.
Thankfully, it seems like NASCAR is taking these concerns seriously. According to Sports Business Journal, their COO Steve O'Donnell has stated that a new deal is in the works and is close to being finalized. He acknowledged that with all the new media partners and opportunities for content, the potential for the sport to grow is immense. While there may be some disagreements over how the money should be split, O'Donnell is confident that they will reach a mutually beneficial agreement.
It has been reported that NASCAR has offered to extend the charter system for an additional seven years, but the team owners are pushing for a permanent solution. It's clear that both parties understand the importance of creating a stable and profitable business model for the long-term success of the sport. With everyone working together and finding a fair balance, there is no doubt that NASCAR will continue to thrive in the years to come.
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