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USA Today via Reuters

USA Today via Reuters

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  Debate

Debate

Is JD Motorsports on the brink of collapse after these shocking layoffs?

JD Motorsports’ future is looking more uncertain now than ever before. Having withdrawn their No. 6 car in the Xfinity Series race in Pocono, reports have now emerged that the team has laid off many employees on Monday morning. The news comes after JD Motorsports filed for Chapter 11 bankruptcy in April. This could potentially lead to an end for the 41-year-old racing team!

Owned by Johnny Davis, the team is one of the oldest in the sport, having competed in the first Xfinity Series race, the 1983 Goody’s 300. NASCAR fans are still coming to terms with JD Motorsports potentially following Stewart-Haas Racing’s footsteps, in what would be another iconic team ceasing operations imminently.

Why JD Motorsports’ situation highlights a bigger issue in NASCAR?

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According to a report by journalist Toby Christie, Johnny Davis laid off several employees following last weekend’s race at Pocono. JD Motorsports has managed to field both their No. 4 and No. 6 Chevrolet Camaro in the opening 19 Xfinity Series races so far, but it’s unclear how the team will proceed for the remainder of the season with the lack of personnel. With people’s livelihoods being lost, one of the biggest concerns that has emerged from this situation is why are teams being forced to shut down.

It’s been a long-standing point of controversy that NASCAR needs to do more to support its feeder series. While the Cup Series gets the attention of fans and the media, the Xfinity and Truck Series are not supported financially in the same way. Let’s take the race in Pocono as an example. The Cup Series race at Pocono Raceway boasted a prize pool of $7,776,907. In comparison, the winner in the Xfinity Series received $1,439,558 and the Truck Series was a meager $757,128. Do you see the staggering difference in prize pools between NASCAR’s three national series?

 

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Is JD Motorsports on the brink of collapse after these shocking layoffs?

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JD Motorsports is the first Xfinity Series team to file for bankruptcy, but the situation in NASCAR’s feeders series is bleak enough for more teams to follow suit. If not months, it may take years, but long-term sustainability across all levels of NASCAR will require more investment trickling into the lower tiers. Doing so will not only improve the quality of races, it will also preserve NASCAR’s heritage and reputation. Moreover, it will also ensure more sponsorship opportunities in the longer term.

As things stand, NASCAR has been embroiled in discussions over revenue sharing and permanent charters in the Cup Series, but it’s about time they shift their attention to the lower tiers, which are fighting for survival. While no announcement has been made about JD Motorsports leaving NASCAR, fans have not shied away from making their voices heard, not just about the team’s circumstances, but the economic situation within the sport as well.

Fans react to JD Motorsports’ dire circumstances

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It didn’t take fans long to voice their opinions after journalist Toby Christie’s report about JD Motorsports’ layoffs became public. Highlighting the dire economic situation of NASCAR’s feeder series, one fan asked for more support for the lower tiers. The fan wrote on X (formerly known as Twitter), “Sport really needs to kick more money to the feeder series. I’m actually shocked the truck series isn’t in absolute shambles yet.

NASCAR recently reached an agreement with Fox, NBC, Amazon, and Warner Bros. for a $7.7 billion media rights deal, spanning seven years. The agreement was a nearly 40% increase from the current deals and will take effect from 2025. Despite the staggering sums of money, one fan wrote, “NASCAR signing all these tv deals while team going bankrupt adds up”. Echoing that sentiment, another fan accused NASCAR of being greedy, writing on X, “If NASCAR wasn’t being a monopoly and taking 65-70% of profits.”

Holding onto the hope that JD Motorsports may yet be able to emerge from their circumstance without being forced to shut down, a fan wrote, “Chapter 11 is just restructuring so hopefully they come out the other side. Hate to see anyone lose their job.” A NASCAR fan couldn’t hold back on their disappointment at a 41-year-old NASCAR team being forced to lay off its employees. The fan said, “This is so sad”.

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JD Motorsports was the first team to have a female crew chief in 2008 and also built the first Nationwide Series Car of Tomorrow. Remembering the role Johnny Davis’ team has played in shaping the career of many NASCAR professionals, one fan wrote, “Sad if true. JD gave a ton of drivers and crew a foothold in the industry. Many of them got a chance to learn and work through any mistakes that would eventually help them later on in their careers.”

What are your thoughts about JD Motorsports’ circumstances? Let us know in the comments!