The most powerful teams in NASCAR warned Friday that the series has a "broken" economic model that is unfair and has little to no chance of long-term stability.
With three full-time drivers out with injuries suffered in NASCAR's new car and no clear answer as to how to fix the safety concerns, the Cup Series is heading into the Charlotte Motor Speedway road course playoff elimination race.
Teams went public with their fight with NASCAR over revenue sharing.
The economic model is broken for the teams, which is why Michael Jordan's business manager now holds an ownership stake in the Charlotte Hornets.
Polk said that the team's realized that the sport'ssustainability is not very long term. The system is not fair.
The Race Team Alliance was formed in order to give teams a voice in negotiations. Polk, Gordon, Newmark, and Alpern were part of a subcommittee that spoke at a Charlotte hotel.
Gordon said the four-car lineup of the most powerful in the industry has not had a profitable season in years. Despite the cost-cutting Next Gen car, it will lose money again this season.
Gordon said that he has a lot of fears about the future of sustainable living.
NASCAR was presented with a seven-point plan on a new revenue sharing model by the RTA in June. Polk said they told NASCAR they wanted a counteroffer.
He didn't say what the seven points were, but he said that team longevity and team sustainable were priorities. A spending cap in Formula One is one of the ideas the committee is open to.
Newmark said that they are open to anything that will lead to a new structure.
Polk said that the counteroffer of a minimal increase in revenue and emphasis on cost-cutting was made by NASCAR.
There is only one place left to cut costs, and that's layoffs.
Significant cuts have already been made. Alpern said that we are doing more with less than in the past.
The AP asked for comment from NASCAR.
With five races to go, the battle over costs is public.
In 2016 NASCAR adopted a charter system for 36 cars that is as close to a franchising model as possible in a sport that was founded by and independently owned by the France family. The team's investment in the sport was protected by the charters at least.
The team business model is dependent on sponsorship in order for it to work. Newmark said sponsorship covers up to 80% of the budgets.
Teams are desperate for financial relief elsewhere and have asked NASCAR for distribution from the league to cover their baseline costs.
The current charter agreement expires at the end of the year in which NASCAR's current television deals end.
Polk said that TV money is split between NASCAR, teams and the tracks, but that the teams receive less than 3% of the revenue. All revenue in Formula One is divided between the teams and series owners.
JGR spent the last nine months trying to find a new sponsor to keep Kyle Busch, the only winner of multiple titles at the Cup level, after Mars Inc. decided this season would be its last. After 15 seasons as Toyota's winningest NASCAR driver, Kyle Busch is leaving JGR to join Richard Childress Racing.
Alpern said that they have become full time fundraisers. We're raising money so that we can exist.
Polk said the teams will honor their agreements. The teams are demanding more in the negotiations.
Polk said that the car is a money-printing machine. Teams and drivers put on the show.
Drivers are angry over recent penalties and the new Next Gen car is being blamed for causing injuries that have never been seen before. What should have been a routine crash into the wall has resulted in concussions for both Alex Bowman and Kurt Busch, as well as a broken foot for one of the drivers.
Ahead of practice at Charlotte, drivers will be presented with the findings of potential adjustments for the car.
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