NASCAR Rumors: JD Motorsports lays off employees following $400,000+ bankruptcy crisis

A recent development in the NASCAR garage suggests that the end for JD Motorsports is closer than ever. Back in April, the Xfinity Series team based out of Gaffney, South Carolina filed for bankruptcy.

Less than three months later, JD Motorsports has reportedly resorted to a pretty extreme measure. The two-car organization recently laid off a large chunk of its workforce ,as per Toby Christie.

Moreover, the organization won't be taking part in the upcoming Xfinity race at Indianapolis Motor Speedway on Saturday, as Bob Pockrass reported on X:

"No JD Motorsports cars entered. Team filed Chapter 11 bankruptcy (which allows to continue run while reorganizing debt) in April. Johnny Davis was allowed to continue to run the team on a break-even budget. TBD if it ends up in Chapter 7 liquidation. Listed debts approx $436K."

As Pockrass pointed to the amount the team owes its creditors, it's worth taking a look at who a notable part of that is to be paid to. JD Motorsports' biggest debt is to American Express - $100,884.42 - as per Toby Christie.

Other creditors include ECR Engines and G-Force South. Both are owed over $50,000 in debt. But even though JD Motorsports' time in NASCAR might be coming to an end, the team has some notable off-track achievements to their name.

Owner Johnny Davis has been part of NASCAR for over three decades in a variety of roles, such as being a crew member and chief, among others. JD Motorsports was also the first organization in NASCAR to have a female crew chief in Cindy Woosley when she replaced Gene Allnut at Las Vegas in March 2008.

Although the team hasn't won a race in all their starts over the years, they've competed in over 700 races.

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Hailie Deegan reveales the cost of running in the NASCAR Xfinity Series for a driver in 2023

After her first Xfinity Series start last season, Hailie Deegan was asked on "Rubbin is Racing" when she'd move up the ranks. In response, Deegan opened up on the tough financial reality in NASCAR and how much money it takes to run Xfinity and Trucks.

She claimed that going from Trucks to Xfinity means one's budget goes "double if not more."

"You want to run for a good Truck team, and this is probably a vicinity of, it's about $2 million a year to go and run for an A-level Truck team. If you're looking to run for an A-level Xfinity team, you're looking at $4 million-$5 million a year," Deegan said.

Deegan added that is the "cold hard truth" of it, which no one wants to speak about or address.

It's worth mentioning that Hailie Deegan recently parted ways with AM Racing, in the middle of the season in her rookie Xfinity year.

With the idea of another big name team, JD Motorsports potentially leaving the sport, it'll be interesting to see if and how NASCAR intervenes, given the rising costs.