Last October, NASCAR rejected a new revenue-sharing proposal but the negotiating team representing Cup Series organizations remains optimistic about changes for the long-term fiscal sustainability of the teams.
NASCAR’s current TV deal and current Cup Series charters are set to expire at the end of the 2024 season. In light of the situation, the negotiating team put forward a seven-point proposal to NASCAR to make changes to its business model. The team consisted of Jeff Gordon, vice chairman and co-owner at Hendrick Motorsports; Steve Newmark, president of Roush Fenway Keselowski Racing; Dave Alpern, president of Joe Gibbs Racing; and Curtis Polk, Vice Chairman of Hornets Sports & Entertainment and part-owner of 23XI Racing.
“feeds you BS that they support women.” – Natalie Decker calls out NASCAR for its treatment towards women before removing the post
NASCAR’s counter-proposal, they said, only showed a “minimal increase in revenue and the emphasis was on cutting costs dramatically.”
Nonetheless, the team is still negotiating with NASCAR to bring about a model that works for everybody.
“The dialogue continues between NASCAR and (the negotiating committee). A lot of the same issues are still the same issues we’re working through,” Newmark, a member of the negotiating team.
“There is a model that works for everybody which actually helps take the sport to the next level. There’s just a lot of pieces and we have to figure out how to get there.
“The reason I have so much optimism that we can get a deal done is because the sport is growing. If we were in the situation like five years ago where the sport was stagnated, it might be more difficult to come up with a whole new paradigm.”
The reason for optimism is the increase in the quality of racing backed by the increase in the TV ratings of the recent seasons, which should ultimately help NASCAR get a bigger TV deal.
“The sanctioning body, the tracks, the teams, the drivers – you have to have all of them working together and rowing in the same direction,” he said. “The issue right now is the teams, from an economic perspective, are struggling. Our financial model doesn’t work but the sport is still thriving.
“Because of that we know there is a path forward to figure it out. It’s going to take a lot more work. It make take two steps backwards, one step forward. It’s not a lot different than what a lot of other sports have gone through.
“It’s just a little but more foreign to us because of the way this sport has been run for so long. It’s something I would definitely pay attention to in the next few weeks.”
Previously, NASCAR said that its priority lies in the extension to the Charter agreement, which will increase revenue and help lower team expenses.