NASCAR's JD Motorsports pushes for financial resurgence after bankruptcy

One of NASCAR's oldest active teams, JD Motorsports, filed for bankruptcy and is pushing toward reorganizing its financial and internal affairs. JDM currently fields No. 6 and 4 entry with part-time drivers in the Xfinity Series.

The organization filed for Chapter 11 bankruptcy, which is a United States bankruptcy law that allows them to reorganize and safeguard their company from bankruptcy.

According to Toby Christie, a renowned journalist, JDM reportedly laid off several employees after the Pocono race weekend. Moreover, the team withheld one entry for the race at Pocono Raceway on July 13. As the recent Indianapolis weekend schedule got done and dusted, JDM didn't have an entry with either of the two cars for the event.

In a recent press release, JDM, which is based in Gaffney, South Carolina, shared their stance amidst the financial resurgence. Owner Johnny Davis claimed that the shop remains functional and will continue to build cars. Davis said:

"We’re here working toward racing. Racing has been a part of my life since I heard the first race engine. It’s what we want to do, and we want to do it well. We want strong cars and a strong program we can sustain."

"It has been a particular point of pride in our shop that drivers have started here and gone on to do very well. We give people a launching pad. What we are able to gather in sponsorship and the small winnings from purses can’t keep us doing what and how we want to do. It’s simply a matter of math." Davis added.

Davis formerly worked as a pit crew member and a NASCAR mechanic. He also won the 1987 Xfinity Series championship as the crew member for Larry Pearson. JDM, after becoming a multi-car team in 2002, has worked with NASCAR drivers such as Ross Chastain and Ryan Preece.

As Davis and his team continue reorganizing the company's finances, he also claimed:

"Some of the biggest companies in the country have reorganized through bankruptcy...We’re pushing forward."

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Hailie Deegan claims the value doubles as you jump up the NASCAR Series

NASCAR driver Hailie Deegan once talked about the cost of running in NASCAR's National Series in an interview in 2023.

In a conversation with Rubbin is Racing, Deegan was asked if she plans to move up the ladder in the NASCAR division, to which she shared the financial side of being a driver in the Xfinity and Truck Series. The 23-year-old said:

"If you want to run for a good truck team, and this is probably a round of vicinity, it's about $2 million a year to go and run for A-level truck team. And to run for an A-level XFINITY team, you're looking at four to five million dollars a year. And that's just a cold, hard truth of it. Like it's that's the truth and no one wants to say it."

Deegan, who was on his full-time rookie run in the Xfinity Series, recently departed from AM Racing mid-season.

With teams such as JD Motorsports filing bankruptcy and NASCAR delaying the charter agreement, NASCAR owners have severely faced challenges and have been vocal about it in the community. Only time would tell, how much will the charter negotiations favor teams and their owners.