“It Can be Zero!” Kelly Earnhardt Reveals the Disheartening Profit Margins of JRM and JGR

One of the major challenges facing the NASCAR community is the massive race team operating cost amidst the drop in sponsorship revenue. The sport leadership has been working hard behind the scenes to make it more profitable for team owners with new policy decisions. Unfortunately, there hasn’t been any significant changes.

JR Motorsports co-owner Kelly Earnhardt sat down with Joe Gibbs Racing co-owner Heather Gibbs to talk about the brutal reality of finances in the sport via Dirty Mo Media Business of Motorsports podcast. She highlighted how the Gibbs have a more challenging undertaking in the Cup unlike JRM, that is a three times smaller operation.

I know that fans don’t always understand what it takes to run a race team… You guys [JGR] have 450 employees; I have 130, and I’m like, ‘Oh my gosh, times that by three.’ Four cup teams just the massive demand, sponsorship, partnership, all of those kinds of things.

Kelly Earnhardt Miller said on her podcast.

Further talking about the point, Kelly Earnhardt highlighted how the charter lawsuit revealed that JGR just have meeker 2% profit margin, despite being one of the most dominant Cup teams ever. JRM, the best team in the second division only has 1.5% margin. If the big sides are struggling increase their margin, the struggles of small teams are more desperate.

You said in your testimony during the lawsuit that you guys have operated on about a 2% profit margin, and I feel you. I’ve never really looked at our profit margin because I’m just happy if it’s in the black, right? Like, it can be zero, it can be ten thousand dollars, it could be a hundred thousand dollars, and I’m just happy it’s in the black. I looked at ours and we’re about 1.5%, so I feel you.

Kelly Earnhardt added via Business of Motorsports podcast.

Kelly Earnhardt explains how JRM and JGR aren’t racing for profits in NASCAR

Later talking on the podcast, Dale Eranhardt Jr.’s sister explained how they just like JGR are not racing to make money. They became part of the sport owing to their passion for racing and they are content with breaking even after a season, as the legacy is more valuable than money for them.

JR Motorsports doesn’t do this to make money, right? We started our team because of the legacy of our family and the passion of racing, and from the very first days, if we were able to just ride that fence on the line of slightly profitable or not losing our butt, that was good for us.

Kelly Earnhardt said.

She highlighted how the Gibbs’ and Earnhardt’s are responsible for the livelihood of 600+ people in the motorsport’s communality. Hence, they can’t afford to mess up anything regarding the operations of the race teams.

And I always said to Dale…you [Heather Gibbs] have 450 families, I have 130 families, and they make their living doing this. And we’re fortunate in other ways that we’ve made a living, we’ve done things, Dale’s career and so on and so forth, you [Heather Gibbs] were a very accomplished realtor, and the family at Joe Gibbs. There’s no room for error in this sport to mess up.

Kelly Earnhardt added.

The comments from the veteran NASCAR peroneal shows the passion of the Earnhardt’s and how their legacy will go on shape the sport in the coming years. It would be interesting see if Kelly will further expand JRM’s own legacy by permanently entering the premier division.

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