Michael Jordan claims NASCAR “is going to die” if charters doesn’t become permanent

Michael Jordan has urged NASCAR to make charters’ permanent.

Michael Jordan claims NASCAR “is going to die” if charters doesn’t become permanent

Michael Jordan and Denny Hamlin (Via IMAGO)

NASCAR and the teams has been negotiating a new charter deal for the last two years. But no positives have come out of thesis talks as it seems both parties are not willing to give up on their respective proposals. Permanent charter is a big point of discussion in the talks. Now 23XI Racing co-owner and NBA legend Michael Jordan has opened up about the situation.

Michael Jordan wants NASCAR to have permanent charters as it is the only way they could create a new revenue stream to fill the deficit they are having at the moment. Teams have long been asking for a better share of the revenue pool and demands for new charter system is part of it.

If you had permanent charters, then you could create a revenue stream, either with new investors or different types of sponsorships that would subsidize that type of variance between ownership and the league.
Michael Jordan told New York Times.

The ex-Chicago Bull’s legend went on to point out that the teams are missing out big time with NASCAR’s decision to hold on to the control of charters. He added that if the current situation continues teams would cease to exit because of economical constrains.

That’s a big, big miss right there. If you don’t correct that, this sport’s going to die not because of the competition aspect, but because economically it doesn’t make sense for any business people.
Michael Jordan said.

Michael Jordan explains why the current partnership is not good

Currently the revenue sharing format is in favor of NASCAR. Despite being the biggest contributors’ teams gets only 25% of the broadcasting revenue.  NASCAR gets 10% and the race tracks gets 65%. But with majority of tracks being owned by NASCAR, that going to them as well.

Michael Jordan walks down pit road with his wife Yvette Prieto
Michael Jordan walks down pit road with his wife Yvette Prieto during qualifying for the running of the NASCAR, Motorsport, USA Cup Series Ally 400 on June 25, 2022, at Nashville Superspeedway in Lebanon, TN. (Via Imago)

Jordan while talking about the current state of the sport pointed out that the business is growing, but the growth doesn’t seem to be healthy as not everyone is getting money. He highlighted that it isn’t a good partnership.

In all partnerships, if you grow the pie, that means your business is going to continue to grow. And to grow the pie, you’ve got to make sure everybody’s healthy within the partnership. If our ownership in NASCAR is losing money and NASCAR’s the only one making money, that’s not a good partnership.
Denny Hamlin said.

NASCAR has to sort out the charter agreement soon as possible. The race teams deserve more support going forward and should be given a bog piece of the pie, as the financial situation of the teams demands it.

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