Michael Jordan’s financial advisor calls out NASCAR’s ‘broken economic model’, demands a sustainable change

Michael Jordan’s financial advisor calls out NASCAR’s ‘broken economic model’, demands a sustainable change

Bubba Wallace and Michael Jordan (Images via IMAGO/USA Network)

NASCAR is the world’s premier stock car racing championship. The organization is one of the most highly regarded and profitable motorsports ventures in the world. Recently, the sport has seen demands from the racing teams for a reasonable system that ensures them sustainable profits.

NASCAR’s new TV deals will be signed within two years. So, the teams see this as the perfect one for negotiations. The top team in the cup series has allied to make their demands heard. The 16-cup series owners are represented by Curtis Polk of 23X1 Racing, Jeff Gordon of HMS, Steve Newmark of RFK, and Dave Alpern of JGR.

This alliance was made possible by the efforts of Curtis Polk, who entered NASCAR in 2021 with the team. He is a sports business veteran and has worked as Michael Jordan’s financial adviser for a long time. He is a shareholder of the Charlotte Hornets. Polk, when he was assigned the 23X1 duty, scrutinized the NASCAR economic model and joined hands with the top team to make changes.

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The committee submitted its proposal for model changes long back but received a delayed response from NASCAR. The counter-offer NASCAR made didn’t align with the group’s demands. The teams’ negotiating committee on Friday met with the media. They outlined the problems with the current economic model and gave their views on it. The interaction was led by  Polk.

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Curtis Polk opens up about the NASCAR economic model

NASCAR
Curtis Polk

Curtis Polk pointed out that NASCAR’s economic model needs a fundamental change to ensure the team’s sustainability. He said, “We’ve gotten to this point where the teams realize we can’t keep going on — the sustainability of the teams in this sport is not very long-term unless we have a fundamental change in the model,”.

Curtis Polk pointed out that there is a fundamental misalignment of interest between the NASCAR team and the organization regarding the economic model. He said, “It became fundamentally clear to me that there is a total misalignment of interest, and as a result, the economic model is broken for the teams,”.

The 23X1 Racing investor pointed out that the counter-proposal they got from NASCAR had minimal review increase offered for them and emphasized more cost cuts. He said, “We received a proposal with a minimal increase in revenue, and the emphasis was on cutting costs dramatically,”.

Polk said that all well-managed teams in NASCAR should be able to break-even or have a reasonable profit. He said, “Most of these teams have a very difficult time breaking even. All well-managed teams should be able to compete for a Cup championship and make a reasonable profit,”.

NASCAR released a media statement soon after, pointing out that they are looking into the matter. The statement read, “NASCAR acknowledges the challenges currently facing race teams. A key focus moving forward is an extension to the Charter agreement, one that will further increase revenue and help lower team expenses. Collectively, the goal is a strong, healthy sport, and we will accomplish that together,”.

What are your thoughts on the NASCAR team’s demands?

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