Denny Hamlin, co-owner of 23XI Racing and a long-time driver for Joe Gibbs Racing, faced intense scrutiny in a North Carolina courtroom on Tuesday as the antitrust lawsuit against NASCAR took a dramatic turn, centering on a demand for $205 million in damages. This high-profile case involves 23XI Racing, backed by NBA legend Michael Jordan, and Front Row Motorsports, both alleging anti-competitive practices by NASCAR in the charter allocation process.
Heightened Damages Demand and Courtroom Interrogation
During proceedings at the North Carolina courthouse, NASCAR’s external counsel, Lawrence Buterman, disclosed that 23XI Racing and Front Row Motorsports are seeking $205 million in damages—a sum he said equates to a staggering 900% return on the investment made by 23XI. Denny Hamlin was pressed on the witness stand about whether such a return could be considered reasonable. This grilling extended into questions about his integrity on the stand, an accusation Hamlin quickly dismissed as baseless.
“NASCAR external counsel Lawrence Buterman said 23XI/FRM are asking for $205 million in damages, that this would be a 900% ROI from what 23XI has invested and grilled [Denny Hamlin] about whether that is a fair ROI. Hamlin also confirmed his JGR salary is around $14M annually.”
– Adam Stern, Sports Business Journal
After being challenged on the trustworthiness of his testimony, Hamlin responded directly to the court:
“Nonsense.”
– Denny Hamlin, Co-owner and Driver
Financial Pressures of Running a NASCAR Cup Series Team
Hamlin provided the court with detailed insights into the significant financial requirements of competing in NASCAR’s premier Cup Series. He testified that operating a single car over a full season costs about $20 million, before taking into account overhead and driver salaries. Since launching in 2021, 23XI Racing has scaled up operations, fielding two full-time cars by 2022 and recently expanding to a third entry for the 2025 season.
According to documents and an expert report released prior to the trial, 23XI Racing spent roughly $28 million in acquiring their third NASCAR Cup Series charter in 2024. In earlier seasons, the team had paid $4.7 million for its first charter and $13.5 million for its second, raising the total spent just on charters to approximately $46.2 million. Additional investments, including $40 million dedicated to their race shop and technical partnerships, have further increased the team’s outlay. Front Row Motorsports also reportedly spent between $20 million and $25 million acquiring a third charter, in a deal involving Stewart-Haas Racing.
Inside the Antitrust Claims Against NASCAR
The lawsuit, brought against NASCAR and its CEO, Jim France, alleges that the charter system and related agreements amount to unfair, anti-competitive practices that limit the growth and profitability of racing teams. 23XI-FRM’s legal team argued that internal communications from NASCAR demonstrate a pattern of “take-it-or-leave-it” offers, restricting teams’ choices and financial flexibility. In response, NASCAR maintains that their charter model has enhanced team value and contributed to steady, long-term revenue streams for teams such as Joe Gibbs Racing and Front Row Motorsports.
The trial’s first day began with jury selection, followed by opening statements from both sides. The judge presiding over the case later ruled that both Hamlin and 23XI co-owner Curtis Polk, after testifying, were not permitted to remain in the courtroom, citing protocol on the number of corporate representatives in attendance during witness testimony.
Potential Repercussions for NASCAR and Racing Teams
This legal battle stands to reshape the balance of power and revenue in American stock car racing. For drivers like Denny Hamlin, whose annual salary is reportedly $14 million, and co-owners such as Michael Jordan, the outcome may determine the viability and future growth of their operations, as well as broader financial models within the sport. Entities including the court, counsel Lawrence Buterman, Jim France, and the teams themselves are under scrutiny as the high-stakes trial moves forward.
What comes next will be watched closely by the racing world, as the verdict could have lasting implications on NASCAR’s charter system and the financial relationship between the governing body and its competing organizations, impacting everyone from team executives to star drivers and fans across the country.
.@NASCAR external counsel Lawrence Buterman said 23XI/FRM are asking for $205 million in damages, that this would be a 900% ROI from what 23XI has invested and grilled @DennyHamlin about whether that is a fair ROI.
➡️ Hamlin also confirmed his JGR salary is around $14M annually.
— Adam Stern (@A_S12) December 2, 2025
