“Fans probably don’t care about team profitability,” Steve Phelps addresses NASCAR’s broken economic model

“Fans probably don’t care about team profitability,” Steve Phelps addresses NASCAR’s broken economic model

NASCAR president Steve Phelps

NASCAR’s economic model and its sustainability have been a hot topic recently. The sustainability of the NASCAR team’s profit came to public attention after cup veteran Kyle Busch’s contract extension drama with JGR went public. The top Toyota team failed to secure enough finance to keep the veteran at their garage and lost him to the rival RCR.

The issue gathered more attention this weekend after the representatives of NASCAR teams came out expressing their frustration with the NASCAR economic model. In the current model, 93% of the sport’s value resides with NASCAR and the tracks, while the teams own only 7%. The TV deal also has a similar disparity.

The team representatives which include NASCAR legend Jeff Gordon demanded more shares from the organization. Now NASCAR President Steve Phelps has come forth to address the profitability and economic model sustainability concerns.

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Find out what Steve Phelps said

Steve Phelps
Steve Phelps

Steve Phelps said that the fans don’t care about the profitability of their favorite teams. He pointed out that they should be caring about it as it better the competition on the track. Phelps reiterated that the profitability of race teams is vital for a team’s competitiveness. 

“Race (fans) probably don’t care about team profitability. I’m telling you, race fans should care about team profitability because it creates better competition on the racetrack. That’s what fans care about. They don’t care about, you know, the profitability of a race team. But it’s important. Because if teams don’t have the money to be able to compete on the racetrack, then we’re not going to have as good of racing,” Steve Phelps said.

Steve Phelps pointed out that NASCAR is having discussions with teams regarding their calls for more money from the revenue perspective.  He added that they are also focused on balancing the expense side of the teams as well.

“What we’re doing as the sanctioning body is, moving forward, having discussions with the teams that would suggest that we are going to give teams more money from a revenue perspective. But we also need to work with the race teams on the expense side of things as well, right? And there’s a balance there,” Steve Phelps added.

Steve Phelps pointed out that they are going to find a feasible solution. He said, “Like any good business, you get your revenue in, expenses, and then that look at the profitability at the bottom line is critical. So, I’m confident we’re going to do that and get to a good place with our race teams moving forward,”.

What are your thoughts on NASCAR economic model?

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