NASCAR teams decry ‘broken’ economic model
CHARLOTTE, N.C. — The most powerful teams in NASCAR warned Friday that the venerable stock car racing series has a “broken” economic model that is unfair and has little to no chance of long-term stability, a stunning announcement that added to a growing list of woes.
The Cup Series is heading into the Charlotte Motor Speedway road course playoff elimination race Sunday with three full-time drivers sidelined with injuries suffered in NASCAR’s new car and no clear answer as to how to fix the safety concerns.
It got much worse as teams went public with their year-long fight with NASCAR over equitable revenue distribution.
“The economic model is really broken for the teams,” said Curtis Polk, who as Michael Jordan’s longtime business manager now holds an ownership stake in both the Charlotte Hornets and the two-car 23XI Racing team Jordan and Denny Hamlin field in NASCAR.
“We’ve gotten to the point where team’s realize the sustainability in the sport is not very long term,” Polk said. “This is not a fair system.”
The Race Team Alliance was formed in 2014 to give teams a unified voice in negotiations with the sanctioning body. A four-member subcommittee outlined their concerns at a Charlotte hotel, with Polk joined by Jeff Gordon, the four-time NASCAR champion and vice chairman of Hendrick Motorsports, RFK Racing President Steve Newmark, and Dave Alpern, the president of Joe Gibbs Racing.
Hendrick and Gibbs have won six of last seven Cup Series championships dating to 2015, but Gordon said the four-car Hendrick lineup, the most powerful in the industry, has not had a profitable season in years. It will again lose money this season despite NASCAR’s cost-cutting Next Gen car.
“I have a lot of fears that sustainability is going to be a real challenge,” Gordon said.
Led by Polk, whose role with the Hornets brings familiarity with the NBA’s franchise model, the RTA presented NASCAR in June with a seven-point plan on a new revenue sharing model. The proposal “sat there for months and we told NASCAR we’d like a counteroffer,” Polk said.
He did not disclose the seven points other than noting that team sustainability and longevity were priorities. The committee said Friday they are open to all ideas, including a spending cap like that in Formula One.
“We are amenable to whatever gets us to a conceptual new structure,” Newmark said.
NASCAR responded to the RTA last week with a counteroffer of “a minimal increase in revenue and emphasis on cost-cutting,” Polk said.
The team alliance was unanimous in that the only place left to cut costs is layoffs.
“We’ve already had substantial cuts. We are doing more with less than we ever have in 30 years,” Alpern said.
NASCAR did not immediately reply to a request for comment from The Associated Press.
The battle over costs has been made public with five races remaining to crown the 2022 NASCAR champion.
The issue has simmered for years and in 2016 NASCAR adopted a charter system for 36 cars that is as close to a franchise model as possible in a sport that was founded by and independently owned by the France family. The charters at least gave the teams something of value to hold — or sell — and protect their investment in the sport.
The team business model is still heavily dependent on sponsorship, which the teams must individually secure. Newmark said sponsorship covers between 60% to 80% of the budgets for all 16 chartered organizations.
Because sponsorship is so vital, teams are desperate for financial relief elsewhere and have asked NASCAR for “distribution from the league to cover our baseline costs,” Newmark said.
The current charter agreement expires at the end of the 2024 season, the same time that NASCAR’s current television deals expire.
Although TV money is split between NASCAR, teams and the tracks, Polk said in terms of actual revenue produced by the sport 93% goes to NASCAR and the teams receive just 7%. He noted that in Formula One, all revenue is split 50-50 between the teams and series ownership.
Mars Inc., which first entered NASCAR in 1990, late last year decided this season would be its last and JGR spent the last nine months trying to find a new sponsor to keep Kyle Busch, the only winner of multiple championships at the Cup level. Busch has since signed with Richard Childress Racing and will leave JGR after 15 seasons as Toyota’s winningest NASCAR driver.
“We have become full-time fundraisers,” Alpern said. “Instead of working on our business, we’re raising money just to exist.”
Polk said the teams will honor the charter agreements through 2024. But in negotiating a new charter agreement, the teams are demanding more.
“NASCAR is a money-printing machine,” Polk said. “But the teams and the drivers are the ones putting on the show.”
NASCAR is now under fire from nearly every angle as drivers remain angry over some recent penalties and the stiffness of the new Next Gen car blamed for causing unprecedented injuries. What should have been routine crashes into the wall have sidelined both Alex Bowman and Kurt Busch with concussions, and Cody Shane Ware opted out of Sunday’s race because of a broken foot.
NASCAR has tested potential adjustments for the car and will present the findings to drivers Saturday morning ahead of practice at Charlotte.
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Adam Rittenberg
While Dabo Swinney isn’t inflating LSU‘s grade for beating his team in Saturday’s season opener, Brian Kelly is ready to give the Clemson coach an incomplete for his evaluation.
Both coaches weighed in Tuesday on how LSU’s 17-10 win at Clemson should be viewed. After trailing 10-3 at halftime, LSU outscored Clemson 14-0 in the second half and finished with significant edges in both total yards (354-261) and first downs (25-13).
LSU rose six spots to No. 3 in the AP Top 25 poll Tuesday, while Clemson dropped four spots to No. 8.
“It was a helluva game, down to the last play,” Swinney said in his weekly news conference. “Right out of the gate. It’s like getting the final exam [on] Day 1 of class. They made a 65; we made a 58. Neither one of us were great.”
Kelly had not won a season opener at LSU before Saturday, and the victory was his first with the Tigers against an AP top-5 opponent.
“I thought we dominated them in the second half, so he’s really a really good grader for giving himself a 58, or he’s a really hard grader on us,” Kelly said in his news conference when told about Swinney’s comment.
“Or he didn’t see the second half, which, that might be the case. He might not have wanted to see the second half.”
Kelly added that LSU is moving on to this week’s game against Louisiana Tech.
“Clemson is a darn good football team,” Kelly said. “That’s a top-notch team, and they’re going to be a team in the hunt for [the] playoff picture. We hope we are, too. But it was only one game. So I don’t know if he’s a hard grader or an easy grader, but I like the way that we played in the second half.”
Clemson visits LSU to open the 2026 season.
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Eli Lederman
Oklahoma coach Brent Venables said Bryce Underwood “looks to be wise beyond his years” and compared Michigan‘s freshman quarterback to former Clemson national championship QB Trevor Lawrence on Tuesday ahead of the No. 18 Sooners’ Week 2 visit from the No. 15 Wolverines.
Underwood, ESPN’s No. 1 overall recruit in the 2025 class, will make his second career start at Oklahoma on Saturday (7:30 p.m. ET, ABC).
The coveted freshman earned Michigan’s starting job at the end of fall camp, beating out a collection of experienced passers on the depth chart including offseason portal additions Mikey Keene (Fresno State) and Jake Garcia (East Carolina). Underwood delivered a smooth college debut against New Mexico in Week 1, completing 21 of 31 passes for 251 yards and a touchdown in Michigan’s 34-17 win.
At Oklahoma, Underwood is set to face a much stiffer challenge against Venables, who resumed control of the Sooners’ defensive playcalling ahead of the 2024 season, and an experienced defense that held Illinois State to 151 yards of total offense in Week 1.
The former Clemson defensive coordinator compared Underwood to Lawrence, the five-star quarterback prospect who started as a freshman in 2018 and led the Tigers to a national championship win over Alabama.
“He’s a little different,” Venables said of Underwood. “It reminds me a lot of a Trevor Lawrence. Quick. Decisive. Accurate. Poised. Tough. Consistent. There’s a reason he was the No. 1 player in America. And he’s got a maturity and a work ethic and leadership agility to go along with that.”
As Oklahoma seeks to rebound from a 6-7 finish last fall, a new-look Sooners offense will get a test of its own Saturday.
Behind transfer QB John Mateer and first-year offensive coordinator Ben Arbuckle, Oklahoma gained 495 yards of offense in its 35-3, season-opening win over Illinois State. Mateer, who arrived in the offseason from Washington State alongside Arbuckle, passed Baker Mayfield for the most passing yards by an Oklahoma QB in a debut with 392 yards.
On Tuesday, Venables highlighted the Wolverines’ experience on defense, particularly in the front seven, as a defining challenge for the Sooners in an intriguing Week 2 matchup between two of college football’s most storied brands.
“[It’s] a defense that for the last several years has been one of the gold standards of college football when it comes to playing good defense,” Venables said. “It’s going to be a great physical matchup, and for us, a great litmus test to where we’re at.”
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