“We’re Very Far Apart”- Jeff Gordon & Michael Jordan’s Right-Hand Man Demand More Share in $8.2 Billion TV Deal

When it comes to the financial side of it all, NASCAR teams seem dissatisfied with the governing body. And surprisingly, they have now decided to get vocal about their concerns in the media. Because at the end of the day, it’s the money that keeps the business going.

Currently, NASCAR teams make most of their revenue (around 60-80%) through sponsorship deals. However, what if their sponsors suddenly decide to stop funding? Recently, Joe Gibbs Racing faced a similar situation. When their primary long-time sponsor, Mars Inc decided to pull back its funding, the team had to let go of Kyle Busch as they were unable to find a new sponsor.

And to avoid situations like these further, four team representatives decided to voice the plight of NASCAR team owners. Jeff Gordon, Dave Alpern, Steve Newmark, and Curtis Polk requested a “fair” deal from NASCAR for the upcoming 2025 agreements.

23XI Racing co-owner Michael Jordan’s advisor, Curtis Polk explained; “There’s a total misalignment of interests. As a result, the economic model is broken for the teams. … The sustainability of the teams in this sport is not very long-term unless we have a fundamental change in the model.”

Furthermore, the representatives suggested that just like other sports, NASCAR should also focus on strengthening the teams financially through TV rights fees and revenue sharing. While talking about these suggestions, Polk said; “It’s a wonderful sport. People are in love with it and it produces a lot of money. Let’s just be fair about it. Let’s be fair and equitable. That’s all we’re asking for.”

NASCAR’s current $8.2 billion TV deal will expire in 2024. And for 2025, the Team Negotiations Committee (TNC) representing NASCAR teams proposed a seven-point proposal in June. However, there was no response regarding the same until recently.

READ MORE: Is $200 Million Worth Jeff Gordon a Shareholder in $350 Million Worth NASCAR Team – Hendrick Motorsports?

Around a week ago, NASCAR made a counteroffer. Explaining what the governing body said, Jeff Gordon stated; “We finally did get a response from them — and we’re very far apart.”

What was the counteroffer?

As a counteroffer to TNC’s proposal, NASCAR suggested dramatic cost-cutting with a slight revenue increase as the solution to the teams’ issues. The governing body did not offer any significant share in the TV revenue. Instead, it offered assistance in reducing current team costs.

However, Polk explained that to implement the cost-cuttings, teams will have to lay off staff. With the current Next Gen cars, all the teams are required to purchase parts from a single-source supplier. Thus, the only way to cut down expenses is by reducing the amount spent on the workforce.

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At present, the team representatives and TNC in general are demanding a major shift in NASCAR’s business practices. Explaining their objectives, Roush Fenway Keselowski’s Steve Newmark stated; “Our goal throughout this process is stability, longevity, and the idea of hopefully bringing a new paradigm to the sport which lifts all the stakeholders.”