Michael Jordan’s New Nascar Team Can’t Lose If He Applies This Tried-and-True Business Principle

Big news, especially for Nascar fans: Michael Jordan and Denny Hamlin have just formed a single-car Cup Series team, and named Bubba Wallace as their driver.

Jordan needs no introduction. Hamlin, who currently drives for Joe Gibbs Racing, has won 43 Cup Series races and is arguably the best active driver to have never won the series championship. 

Wallace, who earlier this month announced he would not return to Richard Petty Motorsports next year, is the only Black driver competing full-time in Nascar’s three national series. He has gained widespread public awareness by speaking out against police brutality and social injustice.

In a sport where money buys speed, Wallace has recently signed endorsement deals with companies like Columbia Sportswear and DoorDash.

“Historically, Nascar has struggled with diversity and there have been few Black owners,” Jordan said. “The timing seemed perfect as Nascar is evolving and embracing social change more and more.”

Think about it. Jordan is a global sporting icon. Hamlin is one of Nascar’s top stars. Wallace is one of Nascar’s most recognizable names, both inside and outside the sport.

The team will be the first major organization not owned by a White male. It’s one of two– along with Brad Daugherty, a minority owner of JTG-Daugherty Racing–Black owners at the Cup level. The result is a powerful blend of sponsor appeal and marketability. 

But will they win races? That’s a tougher question to answer. Jordan’s history as a team owner is checkered at best.

The motorcycle racing team he owned in the early 2000s was reasonably successful, especially for a works team competing against factory teams.

But his tenure as the owner of the Charlotte Bobcats has been disappointing: The franchise has never finished higher than second in its division. In three trips to the playoffs, it has never made it out of the first round. 

Coaching is important, but basketball is a player’s game: A team with great players and a decent coach will almost always beat a team with decent players and a great coach. That’s why the best college coaches are, first and foremost, great recruiters.

That’s why the most successful franchises are, first and foremost, great at identifying talent.

That’s where Jordan has struggled. No matter how inspirational, transformational, or exceptional, leadership can only produce incremental improvements. Even someone with Jordan’s pedigree won’t be able to turn a new team into a winning team without incredibly talented people.

And that’s where Hamlin and Toyota come in. Hamlin knows the sport, knows the people; he surely has a wish list of people to hire. Toyota, the team’s car manufacturer, knows how to work with teams. Toyota cars have won three of the last five championships, and Jordan’s team will likely forge a technical alliance with Joe Gibbs Racing, similar to that of Furniture Row Racing, winners of the 2017 championship. (In a sport where conflicts of interest seemingly abound, Hamlin drives for Joe Gibbs Racing.)

In all likelihood, Jordan will focus on business development: Using his considerable fame, business relationships, individual brand, and considerable fortune–worth an estimated $1.6 billion–to fund a first-class organization.

Hamlin will likely focus on the technical side. 

And Wallace will get the chance to prove what every driver for under-funded teams dream of: When provided with great equipment, he can win races.

Regardless, it’s a win for Nascar, a sport where some of the most successful owners are in their 70s and 80s. All of whom, coincidentally, I’ve interviewed: Rick Hendrick is 71, Joe Gibbs is 79, Roger Penske is 83. Jordan is 57. 

And besides his relative youth, Jordan’s presence might attract other new owners. His presence should attract new fans. His presence will definitely attract new sponsors. 

His presence definitely adds much-needed diversity to a sport consisting predominately of White males.

Those are all wins for Nascar.

With all the advantages he brings to the table, whether Jordan’s team will actually win races depends on what every successful business depends on: The ability to identify and attract great talent. And turn a collection of outstanding individuals into a real team.

Because that is something no amount of money, connections, name recognition, etc., can buy.