From the sport’s creation in 1948 by Bill France Sr to its modern-day growth by Bill France Jr, the France family has essentially been the stewards of everything NASCAR, keeping a tight grip on the sport’s direction. But now, things are starting to look a little different. Recently, NASCAR President Steve Phelps hinted that the France family might be open to giving up some of that control by potentially selling a stake in the organization. It’s hard to ignore that this move could be tied to a major shift in NASCAR’s landscape, especially given the rising influence of teams like Michael Jordan and Denny Hamlin’s 23XI Racing.

Now, with this potential sale of a stake in NASCAR, it feels like we’re seeing the France family possibly giving in to the changing times. After all, the team owners especially Jordan and Hamlin are shaking things up in a big way, and they’ve got some powerful leverage. The stakes are high, and the legal battle has already resulted in some surprising wins for the plaintiffs. Now, the possibility of an outside investor stepping in might be NASCAR’s way of bracing for the financial fallout that could come from losing this case.

NASCAR’s move to consider outside investors

In a bit of a bombshell revelation, NASCAR President Steve Phelps recently hinted that the organization could explore the possibility of selling a stake in the sport, opening the door to outside investors for the first time in its history. This wasn’t a completely out-of-the-blue statement. As far back as 2018, there were rumors that the France family had explored the idea of finding a buyer for NASCAR through Goldman Sachs, but nothing really came of it at the time. Now, with the sport riding a high and the legal drama with 23XI and FRM picking up steam, it seems like NASCAR is at least considering this new direction.

Steve Phelps in an interview with Sports Business Journal’s Adam Stern said, “I would suggest that six years ago, regardless of how PE (Private Equity) comes into sports in this big way, they weren’t looking to the degree they are now at NASCAR. I’ve had many, many conversations myself with these PE firms who are looking to invest in race teams because they want to hear from someone who is out selling it, ‘Where do you see this sport going, what do you believe the future to be?’ And they’re buying what we’re selling, which is fantastic. I believe that PE is good for our sport because they bring money, they bring expertise and they bring sponsors in many cases, so those are all positive things for our sport.”

And while this move might be an after-effect of the lawsuit, new players have already started to come into the sport. Like how Jimmie Johnson-owned Legacy Motor Club announced that Knighthead Capital Management had joined the team’s ownership group. Or how Joe Gibbs Racing brought in Lance Snacks, owned by HBSE partner the Campbell’s Company, for the 2025 season. This is what Phelps is claiming they are taking NASCAR towards.

Phelps made it clear that this wouldn’t be about selling off parts of NASCAR’s core operations, like its racing series or its beloved tracks. Instead, it’s about bringing in new investors, whether from private equity firms or even sovereign wealth funds, to provide a fresh influx of cash and diversify NASCAR’s financial backing. It’s a strategy that could help NASCAR weather the storm if the teams’ lawsuit ends up forcing the organization to hand over a larger share of its media rights revenue—a move that could hit the France family’s bottom line hard.

While the time of all this seems like the effect of the lawsuit, it might be more than that. And we don’t have the result of the lawsuit yet. So we can’t just narrow it down to that. Meanwhile, Phelps and NASCAR have been adamant about focusing on global expansion. That is why for the first time the Cup Series is going to an international venue this year (Mexico). And they don’t plan to stop there. Brazil is another possible future venue. “One country at a time,” is NASCAR’s plan. And global expansion needs heavy capital. For logistics alone! So getting in more money into the sport could be aimed towards this as well.

Still, with NASCAR looking to expand globally, having new investors could help cushion the financial blow if the worst-case scenario happens in court. Whether it’s a way to play defense or a genuine attempt to modernize the sport’s structure, this potential move is definitely one to watch.

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Richard Childress favors Michael Jordan and Co. in lawsuit drama

When news of the lawsuit first broke out, team owners weren’t exactly surprised. Given the conditions under which they were told to sign the charter agreement, some could have even called it inevitable. One of those people was Richard Childress. Although the NASCAR legend signed the agreement, he made it clear he signed to keep his team afloat. Just recently, he came out in support of the 23XI led lawsuit.

He was in a conversation with Dale Earnhardt Jr when he said, “They [23XI Racing and Front Row Motorsports] had a reason to not sign the agreement. We received it hours before and we had a deadline to sign it. There [were] only three or four things that we were missing on that everyone was still trying to negotiate. And when those negotiations [were] over, these two guys went on their own, which I’m glad to see them do it because they stood up for what they felt [were] right. I think it’ll end up working out…What we were asking for wasn’t [going to] cost NASCAR nothing… All we wanted was to be treated fair, and that’s all these two guys are asking for now.”

Well if the Jury’s verdict is the same as Childress’s, NASCAR is in big trouble. The teams in the lawsuit have made it clear that they believe NASCAR should be sharing a bigger chunk of its $7.7 billion media deal and a seat at the decision table. If the courts agree and rule in favor of the teams, NASCAR could be on the hook for a significant payout, something that could strain its finances.

Of course, there’s another element at play here: Michael Jordan. The NBA legend and co-owner of 23XI Racing has long been a game-changer in sports, and his involvement in this lawsuit has only added to the pressure on NASCAR. Jordan brings not only a massive global brand but also business savvy that could tip the scales in favor of the teams. It’s clear that Jordan and Hamlin are in this for the long haul, and their legal victories so far have made it impossible for NASCAR to ignore their influence.