$20 Million NASCAR Rumors Swirl in After Billionaire Owner Michael Jordan Doubles His Net Worth With One Sale

The veteran NBA legend Michael Jordan is surely setting the tone on how to be a successful player as well as a prolific businessman. With six NBA championships in his name, this living legend has redefined what success looks like. However, he did not become an overnight success story, but it was years of toil and blood, and sweat that propelled him to be one of the richest athletes in the world. 

And he just got richer after selling his majority stake at Charlotte Hornets for $3 billion, the team that he once bought at $275 million back in 2010. This sale raises one question. Throughout the different formats of sports, especially NASCAR, how are owners churning out profits, even when the teams have fewer wins?

Michael Jordan’s Recent Profit Draws Attention to NASCAR’s Profit Scenario

It seems that the answer lies in the power of the popularity of the sport as well as the future prospects of the team. And the sale of the Charlotte Hornets stands as a testament to that. Michael Jordan bought the team back in 2010 and has reached the playoffs only twice. The team’s only winning season was in the 2021-22 season, only to be defeated in the post-season tournament. 

By earning billions in profit, after selling the team’s majority stake to Gabe Plotkin and Rick Schnall, the 23XI Racing owner is also drawing attention to how one of the elite formats of motorsports is earning profits by just selling charters at exorbitant prices that can rise up to $20 million.

But before delving deep into the technicalities, one has to understand what a NASCAR charter is. To define it in layman’s terms, it is an agreement between NASCAR and the teams that ensures that the drivers and their teams will show up during the race weekends. It also guarantees a grid position during the races and also prize money at the end of the season. Moreover, teams can sell and buy up to 4 charters for each team. And the price of this charter is directly proportional to the popularity of the sport.

Although NASCAR had highlighted the fact, it is facing a steep decline in its viewership in the sport and is marked with skepticism regarding the true value of the sport. However, the number seems to state otherwise. To state an instance, according to a report by Sports Business Journal, Starcom Racing traded off its charters to 23XI Racing back in 2021 for $13.5 million. 

Even in an episode of Door Bumper Clear, Freddie Kraft, and his other co-hosts pointed out the fact there were Dale Earnhardt and Denny Hamlin and Matt Kaulig were on the list and in need of a charter. But they pointed out the fact that the constant increase in these charters is a hindrance in acquiring them. The question that arises here is why such skyrocketing prices for charters.

Well, the answer lies in the fact, due to the lucrative TV deals are set to be renegotiated before the beginning of the 2025 NASCAR season. Currently, the NASCAR teams receive 25% of the $820 million that NASCAR receives annually from the media partners and are set to increase with the renegotiation. And in turn, will increase the price of the charters.

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Fans Highlight the Business Mentality of the NBA Legend and His Plans With 23XI Racing

However, what has drawn the most attention of netizens is Michael Jordan’s business model of how he fetches out more profit through a defunct or an average-performing team. They also pointed out the fact that how the NBA Hall of Famer can strategize the profit in buying another charter for the team.

Netizens were quick to point out, “Dude turned 275 million investment into 3 billion. That is big-time winning. Hope the sale of Hornets isn’t a prelude to him selling his interest in 23XI.”

“What a great owner that knows how to make a profit!”

“He’s good at making money but I bet he’s not happy that he could never get them anywhere.”    

While others wrote, “Sports owners have been doing exactly this for years.”

“The beauty for the owners of the closed, franchise based, non-meritocratic American business model approach to professional “sports.”

It is to be seen what is in for 23XI Racing, as many teams are ready to sell their charters and earn a significant amount out of profit from it. Does Michael Jordan have plans to acquire more charters and develop his team by generating more revenues at the end of each season?

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