Ownership is an important aspect of NASCAR racing. From sponsors to cars to basic facilities and equipment, the team owner is responsible for many necessities for a race car driver. However, with the evolution of the sport and its drivers, people have been hesitant to get into the intricate details of owning a NASCAR car. Kenny Wallace highlighted the same in an upload on Twitter.

Kenny understands the business side of things, having seen the struggle to build a race car and find suitable conditions in NASCAR. Describing his thoughts, Kenny captioned the tweet, “The new racing business is The Rental Business.” 

Kenny Wallace unravels NASCAR’s new business model

In the earlier days of racing in NASCAR, drivers often had to build their cars unless a race car owner provided for them. Per Kenny, creating a race car and the necessary equipment for its operation in NASCAR is something other than what a parent would do now. “So there’s this new business dynamic in the sport that… you know, the kid wants to go racing.” said the former NASCAR driver.

“Mom and Dad are like, we don’t want to spend $100,000 on building. We don’t want to buy a truck and a trailer; we don’t want to pay for help, and we don’t want insurance, tires, and hotel rooms. So it’s going on as you look at CB or any of these NASCAR teams.”

Owning a racing team in NASCAR has multiple facets to it. Apart from providing drivers with cars, the owner is also responsible for the team’s continued operation. As long as the business model is not sustainable, it is hard for the team to thrive. Kenny Wallace’s reasoning is understandable, considering how the newer generation drivers have gained access to racing in NASCAR.

“The business dynamic now is people are starting race teams. So those CB cars they have about 8 or 10 of them already. So the mom and dads just go there, and the CB goes, ‘ Ah, give me five grand!’ and parents are like, I can give you $5,000, and my kid can drive the car, and it’s a win for everybody,” added Kenny.

Kenny maintained a relatively neutral stance on the issue as he continued the conversation. Has the supposed ‘rental’ business taken anything away from NASCAR as a sport? Kenny doesn’t believe so.

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Herman believes this business model saves money in a way

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When a team owner is approached to provide cars, the profit from the sale goes to them. One could isolate team owners as enthusiasts financially strong enough to compete in NASCAR year after year. However, if someone has bought a car from a racing team, it not only creates a profit from the sale of the vehicle but also helps the owner to use the same money to find sponsors and equipment.

“It can be looked at as, oh, the wealthy people… No, it actually kind of saves the money because the car owners are making money,“ continued Kenny Wallace. “Now that Mom and Dad don’t gotta build the building, they don’t got all the expenses. That’s a good way to see if your kid can make it or not. But we see it in NASCAR now. I’m not saying it’s bad; it’s a good dynamic. It’s a new business model”

Trying out a kid’s skills in a rental race car also allows parents to deduce his potential without having to own a car. That is one way of creating a win-win situation where all parties get a feasible result. This system could benefit certain teams and drivers a lot. However, it doesn’t change many things for teams who have been racing in NASCAR for a long time and have already generated enough revenue to run in NASCAR races year after year.

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