Jeff Gordon Trying to Get NASCAR ‘On Board’ With New Revenue Deal

by Jonathan Howard
jeff-gordon-trying-get-nascar-on-board-with-new-revenue-deal
(Photo by James Gilbert/Getty Images)

NASCAR and Cup Series teams are in a battle over how the next revenue-sharing deal is going to break down and Jeff Gordon is part of that effort. The Cup Series teams put together a group to represent them in negotiations. This group has made a proposal to NASCAR to increase team revenue, but it was rejected.

Jeff Gordon is a member of the group. He is joined by Steve Newmark of RFK Racing, Dave Alpern of JGR, and Curis Polk of 23XI Racing. These four have been trying to work out a deal with NASCAR. It includes revenue-sharing proposals to inject more money into teams, relying less on sponsorships.

Jeff Gordon Talks NASCAR Negotiations

So, Gordon and the team think they have a plan that will increase funds for teams. NASCAR makes roughly $660,000,000 in revenue a year. While some of that goes to teams, it is only a small fraction. When teams rely on sponsors for 60-80% of their revenue, it creates issues. This is something the negotiation team wants to make clear: there is enough money.

“We feel if we do package the [TV] rights and we’re all on board understanding where costs are at, where revenue is at, where the rights are at, we think that’s way more attractive for [NASCAR] to go into negotiations and say, ‘We have this as a done deal with the teams, all 36 charters, all 16 teams,'” he explained according to Jim Utter of Motorsport.com.

A united front could be what tips the scales in future TV deals. Knowing the entire Cup Series is behind it and involved is major.

“We think there is a big increase in value in going into negotiations with whoever that may be or however that works with that in their back pocket.”

NASCAR Statement

We have seen things like this play out in other sports. As for NASCAR, it is a little more difficult to deal with. The number of teams and charters, and the lack of a union, make it difficult for TV deals and agreements to be treated as they are in the NBA or NFL. Ultimately, Gordon and the others on the team are trying to prevent massive layoffs from across the sport.

Revenue has gotten low all across the board to the point that even Hendrick Motorsports might not turn a profit this year. NASCAR says cutting costs is the way to go, but for so many teams and individuals that is simply not an option. This will likely go on for some time.

It seems like Jeff Gordon and the team’s plan to bring all the teams and cars into the deal together could have some merit. Power in numbers and all that. However, it also has a lot of fans thinking about a lockout, a strike, or something similar.

For now, NASCAR has released a statement.

“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.”

Outsider.com