"We’re tenants in an apartment building" - Michael Jordan's financial manager on NASCAR's divide and conquer approach to charter agreement

NASCAR's introduction of the Next Gen Cup Series car has led to a perennial debate about how to fix a car that has been publicly criticized for the quality of racing it provides at certain tracks. In a similar vein, the governing body and the teams have been in a tug of war over who gets to have the upper hand as NASCAR nears its eventual TV Deal renewal.

Basketball legend and current team owner in the sport, Michael Jordan, and his entourage have been one of the many spokespersons from various teams to have spoken about another aspect that goes hand in hand with the TV Deal, which is the charter agreement.

Similar to licenses granted by stick and ball sports leagues to their teams to compete, NASCAR charters signify a guaranteed entry for a team into events by the governing body.

With the current state of disagreement between team owners and officials from NASCAR, Jordan's long-time financial manager Curtis Polk gave us an insight into the inherent feeling of the owners. He elaborated to The Athletic and said:

"We’re basically tenants in an apartment building. We have these charters and they give us certain rights, and we have responsibilities because of the rights they give us. But at a date certain, which right now is December 31, 2024, we have no further rights to renew, and (the charters) could be taken away from us.”

NASCAR's strategy amongst all this talk surrounding the charter agreement has been to divide the teams based on how much budget they bring to the sport. While giants of the sport such as Joe Gibbs Racing and Hendrick Motorsports do not need to rely on the currently proposed charter to make profits, smaller racing outfits that do not break even yearly see the current system as a way to do the same.

It remains to be seen how the sport finds its way out of what is an inherent and important part of global motorsports, the business aspect of going racing, which has never been kind to anyone's pockets, be it a small mom-and-pop outfit or a multi-million-dollar conglomerate.

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Jimmie Johnson elaborates on his stance amidst NASCAR charter negotiations

Jimmie Johnson, the former 7-time Cup Series champion-turned-team owner in the highest echelon of the sport, elaborated on how the economics of running a Cup Series team ultimately plays a vital role in making a team successful as well as sustainable.

The Legacy Motor Club owner spoke on the current scenario of charter negotiations and told The Athletic:

"It’s not about the money, until it’s about the money. Ultimately, there are protections team owners are looking for, for longevity that would absolutely shore things up for them financially. The clock is ticking, but if you look and see how much time is left, we are just getting into the eighth, maybe ninth inning of what really needs to happen in negotiating for all parties."

With Michael Jordan's financial manager and business manager also anticipating light at the end of the tunnel, it remains to be seen which way the decision ultimately sways in the sport.