The Future of NASCAR Is Uncertain Amid Layoffs and Restructuring

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?

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.

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.

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.”

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.

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 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. 

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.

The team also made history by hiring Cindey Woosley as NASCAR’s first female crew chief in 2008.

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.

The team had prepared the No. 6 car to enter the race, but it never left the shop and was ultimately withdrawn.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. 

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.

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.

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.

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. 

“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.

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.

“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.

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.

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.

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.

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.

“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.

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.