“I Run My Own Cheque Book” – Veteran NASCAR Insider Lays Bare the Reason Behind the Meagre Income in Racing

Sponsorships are the lifeblood of NASCAR teams and drivers, a fact so often repeated it might as well be the sport’s catchphrase. Kenny Wallace recently shed light on this in one of his videos, responding to a curious fan’s comment. The fan pointed out that the prize money at the end of a race hardly covers the costs of the cars and other expenses. Wallace, in his friendly manner, explained that while this prize money is significant for smaller drivers, the big leagues like the NASCAR Cup or Xfinity series need deep-pocketed sponsors to foot the bill for things like tires, fuel, and any repairs.

Wallace said that in NASCAR, sponsors pick up the tab for drivers’ expenses. In return, they get a slice of the pie from stadium ticket sales and advertising revenue, turning the racetrack into a lucrative billboard on wheels.

Kenny Wallace sheds light on the costly world of racing

Racing in high-speed sports like NASCAR or IndyCar can burn a hole in anyone’s wallet. Without sponsors to back them up, teams and drivers might struggle to keep their heads above water, let alone the profit-making part. Just look at Red Bull Racing’s attempt to go it alone; it turned out to be a financial pitfall. Without the safety net of sponsors, the costs of running a car, fixing damages, and the whole nine yards can quickly drain a company’s resources.

Kenny Wallace recently tackled this topic in his “Coffee with Wallace” segment. He put it plainly, “The $3,000 that you won for that championship won’t pay expenses for anything. It needs another zero on it. […] People are always amazed by how very little racing pays. In all racing, even NASCAR a lot of it, 99.5% of it nobody can make enough money to pay the expenses. That’s why sponsors are everything.”

Kenny, known for his savvy in the business side of motorsports, further elaborated, “I’m a businessman[…] The Herminator can count money better than anybody. I run my own chequebook. I got a good system. […] When you run the big races that pay $100,000 to win, you know, $1 million to win, maybe the top three are going to cover expenses. […] I’m not wrong, I’m right.

“I operate my own chequebook, pay my own bill so I know. You would be shocked (to know) the expenses it takes to go racing.”

But this isn’t new territory for Kenny Wallace. He’s been sounding the alarm on NASCAR’s sponsorship crunch for some time now, highlighting a challenge that’s becoming increasingly hard to ignore in the racing world.

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Former Xfinity legend’s caution to drivers on waiting for sponsorships

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Kenny Wallace, in his candid style, had previously thrown a spotlight on the high stakes of securing sponsorships in NASCAR’s Cup Series during his talk in ‘The Kenny Conversation’. He emphasized the relentless hunt for sponsorship, saying, “In NASCAR, you’re always looking for sponsorship. So you’re just 24×7 on the phone trying to find sponsorship. There’s an old saying, ‘If you’re going to play, you got to pay.’ Learned that years ago.“

But he also advised against jumping the gun. Reflecting on how business bigwigs operate, especially around the holiday season, the experienced racer shared some words of wisdom on Twitter for the up-and-comers. He cautioned, “Do not take the bait. 2024 has not started yet. Corporate executives will not be back to work until Monday, January 8th. Even at that, they will clean their desks off and a more realistic date is Monday, January 15th.” 

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It’s a delicate balancing act, juggling expenses and waiting for the right sponsorship deal. Where do you stand in this tightrope walk?