Financial concerns jeopardizing NASCAR’s future?

Between the next media contract and sponsorship, NASCAR may be faced with financial concerns in the near future, potentially jeopardizing the sport.

No one ever said NASCAR was a get-rich-quick job or a stressless journey on which to embark. In fact, many teams, from single-car to multi-car organizations, have come and gone in pursuit of careers or successful business endeavors in racing.

But such opportunities came with the success of the 1990s and the early 2000s rise in the popularity of stock car racing, and while the sport seems to be on the back nine of the fall it experienced, there are still a lot of moving parts.

With Kurt Busch’s retirement, the last driver to compete against Dale Earnhardt no longer competes full-time, marking a continued shift to a younger driver base.

Even existing stars such as Busch’s younger brother, Kyle, have recently found themselves at a crossroads. The shift to younger drivers — and existing star power not carrying its weight — forced a career change.

After M&M’s announced the end of their sponsorship of the 37-year-old, Joe Gibbs Racing cited the lack of financial support as their primary reason for not re-signing the two-time Cup Series champion, presumably leaving 20-year-old Ty Gibbs to take the reins of the #18 Toyota.

With sponsorship shortage and a younger driver roster, are there financial concerns looming for NASCAR?

Hall of Famer and Hendrick Motorsports vice chairman Jeff Gordon recently told Sports Business Journal’s Adam Stern that teams are ”far apart” in their talks of the financial split of the next media contract.

With a rumored move to a streaming service, there is seemingly a gap between what teams feel like they should earn from NASCAR’s revenue, versus what they would actually receive.

Gordon also outlined concerns facing Hendrick Motorsports’ profit margin. This is a dire worry for any team, and this is a 14-time Cup Series championship-winning organization.

In addition to media contracts, sponsorship remains a concern.

The sponsorship debacle surrounding Busch and the #18 team is not a one-and-done problem for Joe Gibbs Racing, or so it seems. Team president Dave Alpern has his own concerns for life after Joe Gibbs retires.

Fortune 500 companies leaving the sport has been a common theme over the years and was highlighted once again when Busch saw his ride taken away when the funding was taken away. With team executives speaking out on their stresses going forward, the future could be grim.

While the debut of the Next Gen car has resulted in sellout crowds and newly tapped into markets, the concerns are present and in NASCAR’s face. Time will tell how they affect the sport. Will it continue to rise into the limelight once again, or will a once-storied motorsport and entertainment tycoon become a relic?