Jimmie Johnson, a seven-time NASCAR Cup Series champion who took over the majority ownership of Legacy Motor Club (LMC) earlier this year, recently discussed the declining driver salaries despite the sport’s increasing popularity. Johnson currently drives the No. 84 Toyota part-time in the series and finished third in his most recent race at Daytona International Speedway. Johnson was asked if NASCAR drivers receive higher or lower pay these days during the most recent episode of the ‘Business of Sport’ podcast.
“Definitely less now… It just reflects contract cycles, and there is a little less effort involved. Numerous cost savings are available. Since the OEMs are in charge of the technology, NASCAR will permit three test sessions for each OEM during the year. The wind tunnel time is also managed by the OEMs. The time available for tire testing and development is also managed by the OEMs. Jimmie Johnson replied, “All of that used to be… any team could do it on their own and at will” (20:30 onward). “I would estimate that a top Cup driver would earn 40 million dollars if they won the championship, had strong merchandise sales, and had all the other advantages. Now, I’d say it’s most likely 13 million, 15 million, depending on the year,” he added. (22:10)
Jimmie Johnson went on to talk about NASCAR’s growing appeal and cost-cutting measures in the sport because the uniform car eliminated the need for significant R&D expenditures. In his era, teams were free to test as much as they wanted, but OEMs now manage testing, and teams depend more on simulators, he explained. “I was very, very fortunate” – Jimmie Johnson on winning in NASCAR during ‘peak earning years’ Among NASCAR’s highest-paid drivers were Jimmie Johnson and Jeff Gordon, his former colleague from Hendrick Motorsports. At their height, the past NASCAR champions made between $20 and $30 million annually when competing in the Cup Series in the 2000s and 2010s.
“Yeah, I was very, very fortunate. My timing as a driver, which I had nothing to do with, but I was able to have, I won five in a row during the peak earning years. It was good,” Jimmie Johnson said during the same podcast. (23:05) According to Forbes, driver salaries declined at the end of the previous decade, with the top 10 highest-paid drivers earning 36% less since 2019. The decline was caused by the charter system and decreased sponsorship, among other factors.
