Despite $7.7 Billion Shake Up, Michael Jordan Warns NASCAR – “This Sport’s Going to Die”

Jim France isn’t a fan of the idea of sharing power with the NASCAR teams. A demand that has been put forth by the Team Alliance ahead of agreeing to the new charter deal. The argument by team owners is for a better share of the revenue, along with a permanent charter agreement.

According to a report by Jeff Gluck and Jordan Bianchi from the Atheltic, Jim France is far from meeting halfway with the teams in agreeing to permanent charters. Instead, he is now willing to meet one-on-one with other teams in an attempt to shift the scales of balance in his favor. However, this move hasn’t gone down well with the team owners, and Michael Jordan from 23XI Racing was also concerned about how NASCAR is handling the whole situation.

Here’s why teams are hard-pressed to get permanent charters

Running a NASCAR team has become financially burdensome for the teams in recent years. Gone are the good old days of the early 2000s, when the sponsorship market was green and NASCAR was a heavyweight in the sporting segment. Since 2016, 11 teams have either downscaled their racing operations, merged, or gone bankrupt competing in NASCAR.

So the idea behind the demands of a permanent charter is to mitigate the rising cost of racing and also attract outside investors. Michael Jordan, sharing his concerns via the New York Times, stated, “If you had permanent charters, then you could create a revenue stream, either with new investors or different types of sponsorships that would subsidize that type of variance between ownership and the league.”

Jordan further explained the detrimental outcome if NASCAR does not rethink its business structure. “That’s a big, big miss right there. If you don’t correct that, this sport’s going to die not because of the competition aspect, but because economically, it doesn’t make sense for any business people.”

Sharing his take on the hot debate, Dale Earnhardt believes it will be NASCAR who will head out of this tug-of-war with a relatively better deal.

Dale Jr. believes NASCAR and teams will reach a truce with the pending charter deal

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Having secured the mega $7.7 billion TV deal, NASCAR is indeed in a good spot to deal with the demands of the team owners. Moreover, their tactic of singling out the mid and the lower-pack traditional team just might end up breaking the coalition the teams have held upon so far. There’s a hypothetical situation or a doomsday scenario where teams could walk away from not turning up for racing. But Dale Jr. doesn’t believe such a situation is rising between NASCAR and the teams.

Predicting a compromise between the two pirates, Dale Jr. said, “I believe that NASCAR holds true to some of the demands, and there’s a compromise. Say if there’s four things that the teams want that NASCAR doesn’t want to give them, they may get two… I don’t think NASCAR gets to go down the road without allowing a few new parameters in charter agreement the teams are asking for.”

It will be interesting to see what the outcome of this deadlock situation will be. Going by the current equation and balance of power, NASCAR is set to lock the deal on their accords.