Former NBA star Michael Jordan has called on NASCAR to implement permanent charters. The negotiations between NASCAR and the teams regarding a new charter deal have been ongoing for the past two years, but no progress has been made. The issue of permanent charters has been a major point of discussion in these talks. Jordan, who is a co-owner of 23XI Racing, has now voiced his opinion on the matter.
Jordan believes that permanent charters are necessary for NASCAR to generate a new revenue stream and address the current financial deficit. The teams have long been advocating for a larger share of the revenue pool, and the introduction of a new charter system is part of their demands. According to Jordan, NASCAR’s decision to retain control of the charters is causing the teams to miss out on significant opportunities. He warns that if this situation continues, teams may be forced to exit the sport due to financial constraints.
At present, the revenue sharing format heavily favors NASCAR. Despite being the major contributors, teams only receive 25% of the broadcasting revenue, while NASCAR receives 10% and the race tracks receive 65%. Given that NASCAR owns the majority of the tracks, they benefit even further. Jordan points out that although the business of NASCAR is growing, the growth is not benefiting everyone financially. He believes that this is not a healthy partnership.
It is crucial for NASCAR to promptly resolve the charter agreement. The race teams deserve greater support and a larger share of the revenue, considering their current financial situation.