Despite being popular in terms of car racing, NASCAR has been struggling in recent months. After filing for Chapter 11 bankruptcy, it has now announced layoffs for some working in the popular sport.
Many of its top teams have had to close down over the last few years, with one more now being added. But what will this mean for the sport, and who is getting laid off?
Most Popular Auto Racing Series
NASCAR racing is the most popular auto racing series across the U.S. But as this is the case, many would question why such a popular sport is facing bankruptcy when other popular sports aren’t.
It could be argued that auto racing isn’t the most popular sport. However, Formula 1 doesn’t seem to have the same issues and is close to matching NASCAR’s popularity.
Overhaul Plans
NASCAR’s president, Steve Phelps, recently shared plans for an internal reshuffle of the organization.
This move was caused by ongoing charter negotiations and a brand-new broadcasting media rights deal. Phelps’ plans to restructure NASCAR make sense as NASCAR’s strategy has pivoted to appeal to a global audience through digital and marketing projects.
Internal Reshuffle
Amid widespread layoffs and bankruptcies, NASCAR’s own office is due for a major reshuffle.
Phelps said: “Tim Clark, SVP and chief digital officer has been promoted to EVP and chief brand officer. Scott Prime, VP/strategy & innovation and the former McKinsey & Co. exec who is one of NASCAR’s foremost behind-the-scenes strategists has been promoted to SVP of global strategy.”
11 NASCAR Racing Teams Are Closed
Things seem to be getting worse for NASCAR racing, as 11 teams have either closed, merged or filed for bankruptcy since 2016.
Many reasons have been given for this. COVID was blamed for the Leavine Family Racing team closing, which many other businesses also blamed. BK Racing filed for Chapter 11 bankruptcy in 2018 due to being $44 million in debt.
JD Motorsports Has Laid Off Its Staff
The latest NASCAR racing team to be facing financial troubles is JD Motorsports. They have had to file for bankruptcy protection, resulting in the need to lay off most of its staff.
The bankruptcy was filed in April 2024, and the debtor listed $442,000 in unsecured claims in the petition. Regardless, this doesn’t look good for the team or NASCAR.
The Money JD Motorsports Owes
With debts of more than $400,000, it’s worth reviewing a breakdown of what JD Motorsports owes and the amounts that are owed to each creditor.
The company they owe the most to is American Express at $100,884.42. They also owe ECR Engines and G-Force South $50,000 each.
Employee Payments Are Up-to-Date
Despite the debts owed to various creditors, it is important to note that JD Motorsports is generally up-to-date on its payments to employees.
However, as most of the team are set to lose their jobs at some point shortly, they are going to be left struggling when trying to find a new job to go to that showcases their expertise in a sport that they love.
JD Motorsports and NASCAR’s History
JD Motorsports has competed in NASCAR’s Xfinity Series since 1983 and is owned and operated by Johnny Davies. It has previously had many successes, including earning four Top 5 and 29 Top 10 finishes.
The team also made history by hiring Cindey Woosley as NASCAR’s first female crew chief in 2008.
JD Motorsports Has Withdrawn From the Xfinity Race
As a first in JD Motorsports’ history, it has withdrawn its No. 6 Xfinity car from the race weekend at Pocono Raceway. However, it reportedly intends to enter a car at the Xfinity Series race at Indianapolis Motor Speedway, but this hasn’t been confirmed.
This is a sign of worrying times for the team as it could mean they will be withdrawing from NASCAR’s Xfinity Series entirely, and it could also be the beginning of the end for NASCAR.
JD Motorsports Team Left Confused
At one point during Pocono Raceway, the JD Motorsports team felt very confused. It wasn’t known that any redundancies were going to happen, and the team assumed the race was going ahead as usual.
The team had prepared the No. 6 car to enter the race, but it never left the shop and was ultimately withdrawn. The No. 4 car was entered into the race but finished 28th out of 38.
The End of JD Motorsports
If recent reports are to be believed, some have suggested that if JD Motorsports doesn’t take part in Indianapolis Motor Speedway, this could be the end of the team entirely.
But as it still hasn’t been confirmed whether the team is taking part, which will likely be a late entry if it does, fans of the sport will have to wait and see what happens on race day.
Costs of the NASCAR Xfinity Series
It’s easy to judge and question why so many NASCAR racing teams have had to close due to bankruptcy, but it’s worth looking at the costs of being involved in the NASCAR Xfinity Series.
According to drivers who have previously participated in the series, it depends on whether you have a Truck or Xfinity team. Truck teams cost around $2 million annually, whereas an Xfinity team can cost between $4 million and $5 million annually.
Sponsorship Problems
While there are several reasons for racing teams to file for bankruptcy, some teams have faced problems with their sponsors.
Due to their own financial troubles, restaurant chain Hooters missed its sponsorship payments to Hendricks Motorsports. They also missed payments to driver Chase Elliott. The team eventually had no choice but to drop its association with Hooters this year.
Drivers Are Losing Their Jobs
It’s not just team members working behind the scenes who are losing their jobs — the drivers are also at risk of no longer being able to race in the NASCAR Xfinity Series.
Should this happen, it means that they might struggle to find another team they can move to to continue their racing career, especially as NASCAR teams seem to be dropping quickly.
Layoffs Hitting Hard
Chase Briscoe was a champion driver with Stewart Haas Racing. But when all four drivers were laid off, the 29-year-old husband and father found himself without a job.
“It’s really no different [to anyone else], I think you still have to put yourself out there, let people know you’re available, go talk to them, meet them, and do whatever you have to do while also trying to perform on the racetrack and show your worth,” said Briscoe.
A Crowded Job Market
While most of us are given a two-week notice, Briscoe’s tenure will continue until November 10 after his final race at Phoenix.
With three other drivers from the same team looking for a new job, Briscoe’s job market is becoming crowded. Briscoe is not only looking for new work with three other drivers, but he is set up against younger drivers in the Xfinity and Truck series who want to move up in the world.
Racing Ahead
With some time left to find a job, Briscoe’s priority is to not get left behind.
“I’m just trying to make sure I’m not left out. I don’t have anything to fall back on. I’m not like some of the other people who have a family business or something. With a two-and-a-half-year-old and a wife and twins on the way, I definitely can’t afford to be left out and not have anything,” said Briscoe.
Marketability
Another factor that could hinder drivers’ ability to find new work is how big their reach is on social media.
Briscoe said: “Fifteen years ago, nobody cared about Twitter or Instagram followers, but now sponsors do, so it’s changed. The landscape of how we do things has evolved. Fifteen years from now, it’ll be totally different again.” Briscoe said that while he drives a car as a job, his team is also a marketing company.
Layoffs at Head Office
While NASCAR drivers and crews face the brunt of the layoffs, they are also hitting head office.
According to the Sports Business Journal, there have been several layoffs across several departments, including the sponsorship sales department. While the number of people who were let go was unclear, it is showing drivers that NASCAR is restructuring when it should be cutting costs.
Moving Abroad
The expensive restructuring of NASCAR’s head office is undoubtedly contributing to the unspecified number of layoffs.
NASCAR is looking to expand the sport internationally. Chad Seigler, NASCAR’s Vice President and Chief International Officer, said: “We’re still working on the 2025 schedule. We feel like we are getting closer every day to it. I don’t think it’s an issue of, ‘Are we going to eventually get the Cup Series outside the U.S.?’ It’s more the matter of when.” Suggested locations are Canada and Mexico City.
Some Are Bouncing Back
Despite the spate of layoffs, some drivers are finally back behind the wheel after previously being let go.
Clint Bowyer is one of those drivers. Bowyer retired following the 2020 season. He last drove in the Truck Series in 2016. He ran 181 races in the Xfinity Series, achieving eight wins and 116 top-10 finishes. He also drove in 541 Cup Series races across 16 years with 10 wins and 226 top-10 finishes.
Coming Back to Nashville
Bowyer returned to the wheel of Spire Motorsports’ No. 7 Chevrolet Silverado on June 28 for the Rackley Roofing 200 in Nashville for the Craftsman Truck Series.
“My career in NASCAR happened because of Nashville. My first race win in NASCAR was at Nashville. It takes me back to my first ARCA race in 2003. I’ve always raced well there,” said Bowyer.
An Uncertain Future
The restructuring of NASCAR’s operations comes at an inopportune time, given the wave of layoffs and team closures.
Internal reshuffles and scouting new race locations is an expensive process. Alongside team closures and bankruptcies, the future of NASCAR racing hangs in the balance.
