Denny Hamlin fiercely criticized NASCAR’s charter agreement during his tense appearance on the witness stand Monday in the Western District of North Carolina, where the 23XI Racing and Front Row Motorsports trial against NASCAR entered a new phase. The Denny Hamlin NASCAR trial testimony highlighted allegations that restrictive contracts hindered his team’s profitability, setting the stage for one of the motorsports industry’s most closely watched legal battles.
Hamlin Questions Charter Terms Amid Financial Reveal
Hamlin acknowledged under direct questioning by Jeanifer Parsigian that 23XI Racing, his team co-owned with Michael Jordan and Curtis Polk, was profitable, generating over $2 million in 2022 and more than $3.5 million in 2023. However, Hamlin asserted this performance was well below expectations, describing NASCAR’s Cup Series charter agreement as a major barrier to higher returns. He testified that despite these earnings, the organization’s expenses weren’t adequately offset, making them heavily reliant on outside sponsorships to stay afloat.
Testimony Highlights Frustrations with NASCAR Agreements
Hamlin’s dissatisfaction with NASCAR’s system came through in his remarks about declining to sign the 2025 charter agreement. He explained that the existing contract disadvantaged teams like 23XI, reducing their share of revenue compared to what he argued was fair. This undercurrent of frustration with the structure set by NASCAR, and the lack of concessions for teams, directed much of his testimony.
“I have spent 20 years in this sport trying to make it better and make it grow,”
Hamlin said, a statement reflecting his long-term commitment and investment in motorsports — Denny Hamlin, Co-owner, 23XI Racing.
“All I know is that we were right and they were wrong, and they needed to be held accountable,”
Hamlin asserted, expressing the team’s determination to challenge the system — Denny Hamlin, Co-owner, 23XI Racing.
Tensions Flare in Cross Examination over Financial Projections
With outside counsel Lawrence E. Buterman pressing him, Hamlin addressed earlier statements about projected profits used to persuade Michael Jordan to join the venture. These initial pitches leaned on NASCAR’s own expectations about cost savings with the Gen-7 car, but Buterman reminded him that his own research had also informed the pitch. While the lawsuit describes the Gen-7 car as financially difficult for teams, Hamlin conceded in a separate podcast with Kenny Wallace that the car was actually
“a net positive for the sport”
— Denny Hamlin, Driver and Co-owner, 23XI Racing.
Buterman also pushed Hamlin on the disparity between stated investments and alleged losses. NASCAR’s attorney noted that the total investment from 23XI principals stood at $23.9 million, versus Hamlin’s claim of $45 million in personal funds. Meanwhile, 23XI’s expert valued the team at $160.2 million by the end of 2024, while texts introduced as evidence showed Hamlin had proposed a 10 percent annual profit target. Buterman challenged the team’s damages claim—$205 million for lost potential profits under the 2016 agreement—describing it as a massive return, but Hamlin deferred judgment to the expert witness.
At one heated moment, Buterman referenced Hamlin’s prior public comments and pointedly asked for confirmation.
“And I see what you’re trying to do with them,”
Hamlin retorted, a response that reportedly drew a laugh from Michael Jordan seated behind the plaintiffs’ table — Denny Hamlin, Co-owner, 23XI Racing.
Charter Negotiation Disputes Intensify During Testimony
After a morning break, Hamlin appeared more assertive when discussing a letter he sent to NASCAR in September 2024, listing eight conditions he insisted must be met before 23XI would agree to the new charter. He provided specific justifications for each demand, and maintained none were met. In his closing testimony, he read a passage expressing concern that the new contract would devalue the team’s charter holdings.
On redirect, Buterman quizzed Hamlin about knowledge of current charter values, which Hamlin addressed plainly:
“I only know that we paid $28 million for the last one,”
Hamlin stated — Denny Hamlin, Co-owner, 23XI Racing. Altogether, the team acquired three charters at prices between $4.7 million and $28 million.
NASCAR Leadership Faces Scrutiny Over Track Deals and Team Concessions
The only other witness called during the day, Scott Prime, NASCAR’s executive vice president of global strategy, took the stand after Hamlin. Prime, involved in both the 2016 and 2025 charter negotiations, answered direct questions from attorney Jeffrey Kessler, who scrutinized NASCAR’s exclusive race track contracts—especially with Speedway Motorsports, Inc. Kessler’s questions and the introduction of text exchanges showed internal disagreements among NASCAR leaders—including commissioner Steve Phelps and president Steve O’Donnell—regarding whether more generous terms should be offered to teams during the next round of charter negotiations.
This split ultimately resulted in just 13 of 15 chartered teams signing the 2024 agreement, with 23XI Racing and Front Row Motorsports opting out and turning to the courts for resolution.
Trial’s Outcome Poised to Shape NASCAR’s Future Dynamics
The Denny Hamlin NASCAR trial testimony represents a critical moment for both his team and NASCAR as an organization. Judge Kenneth D. Bell is presiding over arguments that could redefine the power and financial relationships between teams and governing bodies in motorsports. With major personalities such as Michael Jordan and NASCAR’s top executives in play and claims of hundreds of millions in potential damages, the eventual verdict may impact how future team agreements, investments, and competition operate within the sport.
