Photo by Chris Graythen/Getty Images
For years, other sports have been restricted from making certain moves for financial reasons.
Apparently, NASCAR might be close to implementing a cap on team spending. In the past the notion of such an idea would’ve been laughed at, but with lower television ratings and attendance it could happen sooner than later.
Many teams have engaged in talks and while it’s not believed to happen in the immediate future, the likelihood of it happening in the next three or four years is pretty good, according to sbnation.com. The group consensus among NASCAR executives, team owners and executives, drivers, and manufacturer representatives that spoke with SBNation all see the it moving in that direction.
While there are currently no specific details, it’s believed the move will help limit spending in an era where sponsorship is declining and even the playing field among the teams competing.
“For any professional sport to be viable long term, it needs to be a reasonable business to the team owner,” Rob Kauffman, Chip Ganassi Racing co-owner and Race Team Alliance chairman said. “You look at football, baseball, English football, Formula One, and there are a variety of models and ways, some more successful than others, to make that happen. NASCAR is no different.”
Salaries for drivers and key personnel are believed to be part of the budget when and if a cap goes into effect. A total dollar amount would be issued to each team to cover all day-to-day operations. While that number is unknown, it is believed that this is what will take place. Formula 1 is in the process of determining a dollar amount for their 2019 season, when it will enforce a budget cap.
While many have a positive outlook on the potential budget cap, there are some that are slightly concerned, and some that don’t like the idea at all. Only time will tell if it does indeed become part of the sport, but don’t be surprised if it does.