Michael Jordan could save NASCAR from itself
Last month, 23XI and another team, Front Row Motorsports, filed an antitrust lawsuit against NASCAR and its chairman, Jim France Jr. They accuse the association of monopolistic, bullying behaviour that enriches NASCAR at the expense of its teams and the sport of stock car racing.
If Jordan and his fellow plaintiffs succeed, they might just save NASCAR from itself.
On the surface, it may not seem so. This year, under the terms of its current media rights agreement, the association will have received $820 million from broadcasters — its largest source of revenue. Of that, the best-performing teams earned around $8 — $10 million per car (and additional prize money), and the poor performing teams earned half that, according to Sports Business Journal. The problem is that it costs around $18 million a year to run a single car. Historically, teams made up the difference with sponsorships, but competition for those has become as fierce as what happens on the track.
Blame for these losses comes down to NASCAR’s unusual relationship with its teams. Unlike, for example, the NBA, which grants permanent franchise status to its teams, NASCAR teams are independently owned businesses that lack agreements guaranteeing their everlasting right to compete in the association’s races. Instead, they have had a charter contract since 2016. The first one lasted for nine years and the latest one will be in place for seven years, starting in 2025. Charters expire and can be revoked if a team finishes in the bottom three of the standings
