Teams call revenue model ‘broken,’ warn of possible layoffs

CHARLOTTE, N.C. — The most powerful teams in NASCAR warned Friday that the venerable stock car racing series has a “broken” economic model that is unfair and has little to no chance of long-term stability, a stunning announcement that added to a growing list of woes.

The Cup Series is heading into the Charlotte Motor Speedway road course playoff elimination race Sunday with three full-time drivers sidelined with injuries suffered in NASCAR’s new car and no clear answer as to how to fix the safety concerns.

With just five races left in the championship chase, it got much worse as teams went public with their yearlong fight with NASCAR over equitable revenue distribution.

“The economic model is really broken for the teams,” said Curtis Polk, who as Michael Jordan’s longtime business manager now holds an ownership stake in both the Charlotte Hornets and the two-car 23XI Racing team Jordan and Denny Hamlin field in NASCAR.

“We’ve gotten to the point where teams realize the sustainability in the sport is not very long term,” Polk said. “This is not a fair system.”

The Race Team Alliance was formed in 2014 to give teams a unified voice in negotiations with the sanctioning body. A four-member subcommittee outlined their concerns at a Charlotte hotel, with Polk joined by Jeff Gordon, the four-time NASCAR champion and vice chairman of Hendrick Motorsports, RFK Racing President Steve Newmark, and Dave Alpern, the president of Joe Gibbs Racing.

Hendrick and Gibbs have won six of last seven Cup Series championships dating to 2015, but Gordon said the four-car Hendrick lineup, the most powerful in the industry, has not had a profitable season in years. It will again lose money this season despite NASCAR’s costcutting Next Gen car.

“I have a lot of fears that sustainability is going to be a real challenge,” Gordon said.

NASCAR issued a statement acknowledging “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,” NASCAR said. “Collectively, the goal is a strong, healthy sport, and we will accomplish that together.”

Led by Polk, whose role with the Hornets brings familiarity with the NBA’s franchise model, the RTA in June presented NASCAR with a seven-point plan on a new revenue sharing model. The proposal “sat there for months and we told NASCAR we’d like a counteroffer,” Polk said.