What is the National Association of Stock Car Auto Racing?

NASCAR is a auto racing sport, that uses stock cars, in the typical circular racing format. NASCAR was founded in 1948. The top 3 series are the Monster Energy Cup Series, Xfinity Series, and Camping World Truck Series. NASCAR broadcast it's races on Fox Sports, and FS1. Every Car is covered in sponsorship and are team owned. Basically NASCAR is the typical racing sports. Every year is one season, and at the end of the 36(cup), 33(Xfinity), 23(trucks) races a champion is crowned for each series.

Why did I choose this topic?

NASCAR has been a part of my life since I was 7 when I watched a race with my dad. I typically watch every race when I have the chance. Since my interests have been in the STEM fields, the involvement of math and science tends to appeal to me more than a lot of other similar topics. This topic is very involved with Economics, basically a perfect example of Economics. It utilizes equity, supply and demand, incentives, revenue, etc. NASCAR also has a ton of factors involved in it that have complex economic factors, making it the perfect topic.

Research Question

How does driver performance affect their teams revenue?


As Driver Performance Increases, Team Funding Increases(Revenue)

  • 2006-7 wins 2007-4 wins 2008-10 wins 2009-9 wins 2010-11 wins 2011-5 wins 2012-7 wins 2013-12 wins 2014-2 wins 2015-14 wins 2016-12 wins 2017-8 wins 2018-3 wins(after 12 of 36 races)

Joe Gibbs Racing Revenue(2006-2017):

Team Revenue vs. Win Number(Incentives)

Team MECS XS TS Total Start

HMS 249 26 26 301 1984

JGR 150 143 N/A 294 1991

SHR 45 3 1 49 2003

RCR 108 78 31 227 1969

PR 108 63 N/A 171 1972

RFR 137 138 50 325 1988

CGR 22 17 N/A 39 1989

FRMS 2 0 N/A 2 2004

Lowe's leaving 7 time champion Jimmie Johnson(Equity)

Since Jimmie, "Johnson is now on a career-long win-less streak", "Lowe's, the No. 48 NASCAR team of seven-time champion Jimmie Johnson, is leaving Hendrick Motorsports at the end of the current season." This is due to the lack of performance the 48 car has had in the past season and the current decline of the empire, named Hendrick Motorsports. Once HMS was the most funded and successful team by far, but that streak has ended. From Ever since Jimmie Johnson joined HMS the team has gained equity and won all-star races, worth 1 million dollars. Now they rarely get a top 10 finish, allowing for a minuscule amount of money earned per race, compared to the late 2000's and early 2010's.

Economic Conclusions

I found out that the amount of impact performance has on the quality of a team, based on equity is enormous. The better a driver performs the better the team is overall. Many factors contribute to this, being sponsorship, wins, top 5's, top 10's, etc. All of these help lead to a successful well made racing team.

By Jordan Notov