Denny Hamlin took the stand on Monday in the highly anticipated antitrust trial between 23XI Racing, Front Row Motorsports, and NASCAR at the Western District of North Carolina Courthouse. The Denny Hamlin NASCAR antitrust trial centers on allegations by 23XI and Front Row that NASCAR has used its control in the sport to create unfair economic conditions for race teams.
Opening Day of the Antitrust Trial Sets the Stage
The trial started with forceful opening statements from both legal teams. Jeanifer Parsigian, representing the plaintiffs from Winston & Strawn, began her direct examination of Hamlin early in the proceedings before the session was paused for the day. Judge Kenneth D. Bell presided, ensuring courtroom procedures were closely followed.
During his brief first appearance, Hamlin detailed how 23XI Racing acquired its NASCAR Cup Series charters for $4.7 million, $13.5 million, and $28 million as the team expanded from its founding partnership between Hamlin and basketball legend Michael Jordan into a three-car operation headquartered in Huntersville, North Carolina, with a reported cost of $35 million.
These transaction amounts matched figures highlighted by NASCAR’s defense, represented by John Stephenson of Alston & Bird, as evidence of increasing charter values since the system’s introduction.
The Charter System Is at the Heart of the Dispute
The current conflict arises from NASCAR’s 2016 introduction of the charter system, which was meant to provide stability for Cup teams by guaranteeing race entry, added financial incentives, and valuable assets in the form of charters. Yet, as charters approached renewal in 2025, 23XI Racing and Front Row Motorsports opted not to renew, separating themselves from the 13 other Cup teams that did sign.
Lead plaintiffs’ attorney Jeffrey L. Kessler argued that NASCAR acts as a monopsony—a sole buyer controlling price and opportunity—accusing the organization of keeping financial returns to race teams artificially low to their detriment. According to Kessler, teams’ bargaining power over their own financial realities was being suppressed by NASCAR’s practices.
Defense Argues Growth in Charter Values and Compliance
NASCAR’s legal team, spearheaded by Stephenson, responded with a different narrative. He described the charter system as beneficial, citing increased value and security for teams, with charters now reportedly sold for as much as $45 million. Stephenson emphasized that all contract obligations to teams had been honored:
“NASCAR paid every cent that was due to the teams for nine years,”
Stephenson said.
“You won’t hear that NASCAR broke its word to the teams under the charter agreement.”
Stephenson also pointed to the Department of Justice Antitrust Division’s review of NASCAR’s $2 billion acquisition of International Speedway Corporation in 2019, noting no antitrust violations were found during the process. He argued that concerns raised in the current complaint about anti-competitive issues were never brought up during two-and-a-half years of charter negotiations, nor in a prior letter delivered to NASCAR from 23XI. Stephenson insisted:
“This is not a case about anti-competitive conduct at all,”
Stephenson asserted.
Plaintiffs Challenge Exclusive Agreements and Economic Realities
The plaintiffs’ camp, through Kessler, criticized NASCAR’s control over race track ownership and its exclusivity agreements with venues—specifically those owned by Speedway Motorsports, Inc.—claiming this further constrained teams trying to participate freely or maximize their earning potential.
Returning to the financial aspects, Hamlin explained during testimony that fielding a single Cup Series car for a season now costs around $20 million. He added that while the average payment per charter rose to $12.5 million in 2025 from $9 million under the previous agreement, teams still felt the new terms lacked adequate input from their side—especially regarding required investments and operational directives from NASCAR.
Hamlin Stresses Team Concerns and Ongoing Testimony
During his time on the stand, Hamlin cited scheduling changes and technical regulations as sources of strain for race teams’ budgets:
“Schedule, car changes, rule changes—all those things directly affect our bottom line,”
said Hamlin, who is expected to continue his testimony on the following day with both further questions from plaintiff counsel and cross-examination.
He specifically referenced the logistical and staffing challenges presented by an upcoming Cup Series race in Mexico City, noting the complications and added costs for team employees.
Jury Selection and Next Steps in the Trial
The jury selection process on Monday proceeded efficiently, with nine jurors ultimately seated—six men and three women. Judge Bell admonished jury members repeatedly to avoid discussing any case details with outsiders. The trial is set to continue with Hamlin scheduled for additional testimony as his statements and cross-examination remain pivotal for both sides.
As the proceedings resume, the outcome could have far-reaching consequences on the relationship between NASCAR and its race teams, potentially leading to broader changes in the way the sport’s economics and governance operate in the future.
