Dear NASCAR, Why Fix Something That’s Not Broken?

Imagine being a die-hard NASCAR fan in 2025. You're passionate, dedicated, and willing to do whatever it takes to catch every race, qualifying, and practice round. But here's the thing: it's going to cost you. A whopping $400!

For comparison, that’s 4.7x costlier than F1 TV Pro’s yearly subscription of $84.99. This means the world of NASCAR has gone from being accessible to everyone to being a luxury only the wealthy can afford. And it's all because of the shift from traditional TV broadcasts to streaming.

Now, you might be thinking, "What's the big deal? Streaming is the future, right?" Well, for NASCAR fans, this shift could be a nightmare. With multiple subscriptions across cable and streaming, it's like trying to navigate a maze just to catch your favorite sport. And it's not just the cost that's the problem. It's the fragmentation.

Fox takes the lead in early-season broadcast, followed by races streaming exclusively on Amazon Prime, then TNT and Max take over. And the last lap is covered by NBC. Here is a detailed breakdown.

So, to catch the entire season, NASCAR fans need both streaming and cable subscriptions. That inevitably translates to coughing up more money for a sport that they were accustomed to catching on cable or free-to-air coverage. 

And, if we look at past instances of similar shifts, we do have cause to be concerned: 

• When NASCAR inked a deal with ESPN in 2007, they faced heavy backlash from fans who had yet to get a cable subscription.

• In 2014, it became only worse after the 10-year broadcasting partnership with Fox and NBC. 

• A survey from The Athletic reveals many stopped watching NASCAR when they moved to pay-to-watch cable subscriptions. 

Notably, among the younger generation of fans, Amazon Prime exclusive races don’t seem to create that big of an accessibility problem. But as this Essentially Sports article details, that's not how they want to watch sports. 

🏁Another Left Turn for NASCAR Fans—And Not in a Good Way

On the other hand, a survey reveals that 34% of NASCAR’s fanbase in the USA falls in the 55-64 age bracket. For them, switching between TV and streaming might be a significant hassle. Among rural fans, it has another layer: accessibility. In the same survey from The Athletic, fans even complained about the poor internet for streaming. So all of this just comes together to deter fans. 

For instance, the race from Atlanta to Kansas will be live on Fox Sports. However, the practice and qualifying will only be available on Amazon. Similarly, from Iowa to Championship, the race will be live on NBC, but the practice and qualifying have been moved to Tru TV/Max. Sans the practice and qualifying, it will diminish the overall experience for dedicated fans. They are definitely not amused.

In fact, on a fan survey that we ran, 68.82% of NASCAR fans called the new media rights deal: bad. “We will have to spend more, in order to see the race each week!” wrote one user. While another commented, “I fail to understand why they want to keep making things more difficult for us 'little people' on a budget.” 

This also came at a time when NASCAR fans were already disgruntled about the product. Firstly, the format, more specifically the fact that you can win a race today and enter the playoffs right away, hasn’t sat well with fans. Instead of season-long consistency. Most claim it values only a week’s performance (or luck).

On top of it, they are already fed up with Fox’s broadcast – Jamie Little’s uninspiring play-by-play call of the Truck Series wreck is a case in point. There is also a palpable dissatisfaction with Fox promoting Indycar instead of NASCAR. 

💻 So, Why Is NASCAR Pivoting Towards Streaming?

The NASCAR governing body is bullish about Amazon Prime’s prospects based on the NFL’s success. While they want to reach a younger audience, their goals are even broader. The Athletic quoted Brian Herbst, NASCAR’s executive vice president and chief media & revenue officer, saying, “For the Amazon Prime broadcast, (postrace is) as long as it takes to tell all the analysis, all the stories of the race that just happened.”

But there is something more. 

While these accessibility concerns dominate fan discussions, NASCAR’s leadership is focused on securing its financial future—an evolution that goes beyond broadcasting deals and into private equity investments. “I believe that private equity is good for our sport because they bring money, they bring expertise, and they bring sponsors in many cases,” said Steve Phelps. Some believe it’s already a done deal, but only an official announcement remains. 

It should also be noted that several sponsors have left NASCAR in the recent past, raising alarm bells among fans and stakeholders. The exodus of sponsors is likely to continue with FedEx, Mavis, and Geico with Xfinity (NASCAR’s title sponsor) & Sunoco (NASCAR's official fuel partner) likely to follow suit post-2025. In fact, losing Sunoco might cost NASCAR a jaw-dropping $10M in sponsorship revenue, per an article in Newsweek. 

On top of it, NASCAR is also plagued by an antitrust lawsuit from Michael Jordan’s 23XI Racing, and Front Row Motorsports. They alleged that NASCAR’s revenue-sharing model unfairly benefits long-established teams over newer ones. The lawsuit questions NASCAR’s handling of broadcasting revenue, potentially impacting future distribution of media rights earnings. In light of these, NASCAR’s ‘unpopular’ decision does seem to be a rational choice for a few key reasons: 

• Amazon provides global exposure and the opportunity to tap into a younger, tech-savvy audience.

• Data from Evoca TV says Cable subscriptions witnessed a 4.9% decline YOY, from 72.2M in 2023 to 68.7M subscribers last year.

• 36% of TV usage is dedicated to streaming as opposed to only 28.7% to cable TV. At least 83% of US households had at least one streaming subscription, per Exploding Topics.

Moreover, a streaming-only schedule would also lead to NASCAR having to focus less on pleasing multiple partners and cater more to the core fan experience. In addition to revamping its streaming and broadcasting schedule, NASCAR has also leveraged social media for stronger fan engagement through behind-the-scenes content and interactive experiences. NASCAR has over 1.3M YouTube subscribers, and it’s planning to expand more. 

For NASCAR, the challenge isn’t just securing new revenue streams—it’s ensuring that shifting to streaming doesn’t alienate core fans. The key to success? Transparent communication, flexible subscription models, and ensuring that content accessibility doesn’t take a backseat to profit-driven partnerships.

For the first time in their 100-year history, the New York Giants are opening their doors to private equity. The franchise—historically controlled by the Mara and Tisch families—is now set to sell a minority stake, making it the fourth NFL team in the last seven months to do so. This marks a historic shift in team ownership dynamics, reflecting broader financial realities in the league.

While tradition built this franchise, economics is reshaping it. This just points to the fact that the game has changed, and so has the business of owning a team…

It is no longer just about game-day profits anymore. It’s about surviving an economic arms race—where ballooning salaries, media rights, and franchise valuations force teams to rethink how they generate cash. 

Think of this: the 2025 salary cap is expected to cross the $270M mark. Almost double what it was 10 years back. The minimal salary scale for rookies has soared from $435K in 2015 to $840K this year. Hence, a need for more liquidity and growth capital. Enters Private Equity (PE).

In 2025, PE’s minority stakes across MLB, MLS, NFL, NHL, and NBA have reached north of $150B. The New York Giants will be the fourth NHL team to join the bandwagon. But before we deep dive, here are three factors to keep in mind:

🤝 Currently, the Tisch and Mara families each own 50% of the team.

🔑 They are looking to sell a 10% stake sans the voting rights.

💵 Forbes values Giants at $7.3B, while CNBC puts it at $7.89B.

In 1925, Tim Mara purchased and founded Giants for $500. 66 years later, Bob Tisch bought a 50% stake for $80M. Currently, John & Steve are the President and the Chairman, respectively. They were one of the 31 NFL team owners who voted in favor of private equity in the NFL last August – the last of the five major leagues in the USA to embrace PE.

⚖️ NFL’s Private Equity Play: A High-Stakes Deal with Guardrails

MLB was the first in 2019, followed by the NBA, NHL, and MLS. But it should be noted that the NHL has a firm grip over private equity compared to other leagues. An investment firm can buy only a maximum of 10% in any franchise as opposed to 20% in NBA, NHL, and MLS and 15% in MLB.

Furthermore, a team can only put 10% of its total valuation up for sale vis-à-vis 30% that the other four major leagues allow for. Interestingly, PEs need to agree to a six-year term while owning a stake in a franchise, a condition not found in the other four leagues. 

It should also be noted that when the NFL teams stamped their approval on private equity, they also sanctioned only four firms to own a stake in the franchises. All with deep pockets and a history of investing in sports. 

• Ares Management

• Sixth Street Partners 

• Arctos Partners 

• A consortium (nicknamed ‘The Avengers’) of Dynasty Equity, Blackstone, Carlyle Group, CVC Capital Partners, and Ludis.

So, who’s knocking on the Giants' door? If past deals are any indication, it’s likely one of these four power players that the NFL has already sanctioned to invest in its teams.

🧐 The Billion-Dollar Question: Who is Buying? 

Barely six months have passed since the NFL approved private equity. But within the next 180 days, PEs moved in fast. 

• Philadelphia Eagles sold an 8% stake to two families, valuing the franchise at $8.3 B. 

• Arctos, whose footprint can be found on both sides of the Atlantic, (from soccer to Motorsport), purchased a 10% stake in Buffalo Bills, valued at $4.2B.

• Miami Dolphins, valued at $6.2B, sold a 10% stake to private equity firm Ares Management. 

• San Francisco 49ers are also mulling over a 10% sale hoping to value the franchise at roughly $9B.

Note: Past valuations are based on Forbes data from August 2024.

While it might seem that Giants’ potential buyer will be one of these four, there is a slight chance that it can be a different entity. With time, more PE firms will be allowed to own a stake in NFL franchises. The possibility of that kickstarting with the New York Giants can not be ruled out.

More importantly, there is one person who will be looking at the development with a keen interest. The former two-time Super Bowl champion quarterback, Eli Manning. The 44-year-old has never hid his desire to buy a stake in his former team. Now the door is wide open. Manning, however, hasn’t made any public remark. But the boxing legend Floyd Mayweather has.

Reportedly, Mayweather is part of a group with business partner Meyer Orbach, that wants to be part of the 4-time Super Bowl-winning franchise. “My partners and I are always looking at different opportunities, including ownership of sports teams. I can't comment further than that," Orbach was quoted by TMZ Sports. Their offer? $700M. TMZ also reported that Mayweather has received a letter of support from the team’s current owners. 

Of course, everything is still under wraps. In fact, other than revealing that they have roped in Moelis & Co. as their banker, the team has yet to reveal any key details behind the decision. It’s not that they are struggling financially – Giants are still the sixth most profitable sports teams globally per a Forbes finding. A well-executed deal can push their valuation to north of $10B per some estimates. It might even set a new benchmark influencing other teams to walk down the PE path.

But most importantly, the business move from the New York Giants is another sign of the changing landscape in NFL franchises. Make no mistake, a historic family-run organization embracing PE is a sign of times. With time, we expect a greater influx of PE into pro football.  

Sports investment bears higher returns with lower risk as evidenced by the Ross-Arctos Sports Franchise Index (RASFI). RASFI tracks the aggregate valuation growth of MLB, NBA, and NHL. As per a report on Fire Capital Management, since 2000, the RASFI index has returned almost 1.97x that of the S&P 500.

As private equity reshapes the financial structure of sports franchises, the Giants’ move signals a shift that could soon become the norm. It was estimated that around $12B would be injected into the NFL via private equities, becoming stakeholders in teams. The big question isn’t just who’s next—but how this financial model will redefine the economics of the NFL over the next decade.