The ongoing Denny Hamlin NASCAR lawsuit, now in its second day, has placed the stability of Hamlin’s 23XI Racing team in jeopardy. In a tense courtroom atmosphere, co-owner Denny Hamlin explained that decisions made on the 2025 charter agreement could force the team to shut down if major changes are not implemented.
Hamlin’s Concerns on Long-Term Viability of 23XI Racing
Speaking before the court, Denny Hamlin, who co-owns 23XI Racing alongside basketball legend Michael Jordan, presented detailed financial documents and described past interactions with NASCAR leaders. Hamlin asserted that the business environment created by NASCAR’s current policies offers little chance for true growth or long-term survival for race teams, especially under the terms of the proposed 2025 charter agreement. According to Hamlin, the deal would commit teams to an arrangement that severely limits their revenue prospects, effectively hindering operations for years to come.
Hamlin’s testimony highlighted that, under the proposed terms, 23XI Racing would face significant operational strain. He called the charter offer
“essentially my (team’s) death certificate for the future,”
and added that the team would
“not… in business if we sign this (within) 10 years.”
He criticized the existing financial structure, stating it rewards NASCAR and the France family while team costs escalate every season. Hamlin argued that teams currently receive fixed payments, rather than a share of rising media revenues, which could otherwise support their stability and growth.
During testimony, Hamlin described how a 2023 meeting with NASCAR chairman Jim France left him dispirited. France reportedly told Hamlin that
“problem in NASCAR is teams spend too much money and suggested that teams should operate on around $10 million per year. Hamlin told the court that this does not match real-life team spending needs, saying, ‘We’ve cut this grass so short, we’re down to the dirt.”
He used these remarks to illustrate how disconnected NASCAR leadership appears from the financial demands actually faced by race teams.
Financial Strains and the Need for Change
Hamlin provided specifics about 23XI Racing’s financial pressures, stating the team operates on a slim 2.26 percent profit margin. He explained how debts to co-owner Michael Jordan, in the form of tens of millions in loans for buildings and team operations, underline just how fragile the team’s position has become. When questioned by NASCAR’s attorney, Lawrence Buterman, about the requested $205 million in damages, Hamlin responded bluntly:
“We want to be made whole for what you guys did to us.”
Reporting from Deb Williams at Autoweek noted,
“In testimony today, Denny Hamlin said he filed the antitrust suit against NASCAR because ‘it’s time for a change.”
The lawsuit reflects growing tension among racing teams who feel that their economic survival is at risk without greater revenue sharing and structural reforms.
NASCAR’s legal team introduced prior examples of Hamlin publicly supporting NASCAR’s business model and the introduction of the Next Gen car, including statements made during the Kenny Wallace podcast. Hamlin, however, countered this portrayal by distancing himself from those remarks, explaining that
“All my public (comments) are out of context… You give me talking points, I say it to make fans feel happy.”
He further explained that, due to possible repercussions for criticizing NASCAR, he often repeats talking points provided to him, as reported by Toby Christie:
“When pressed on why he didn’t say anything negative about the Next Gen car on the Kenny Wallace podcast, Hamlin said, because if he says anything negative about NASCAR, he gets a lashing. So, when he speaks publicly, he delivers the positive talking points that they give him.”
NASCAR Challenges 23XI’s Business Practices
In court, NASCAR’s attorney argued that 23XI Racing also engages in restrictive practices, spotlighting efforts to secure drivers like Corey Heim to the team, offering drivers a revenue share smaller than NASCAR provides to teams, and including exclusivity requirements for Riley Herbst. When pressed on whether such moves were anti-competitive, Hamlin replied,
“We are not a monopoly. The driver has options. That’s the difference. It’s not anti-competitive if the driver has options.”
He emphasized that drivers are free to seek positions with other teams, unlike the control NASCAR exerts over the entire professional racing series.
This high-profile legal dispute has placed intense scrutiny on the financial model underpinning stock car racing and the balance of power between NASCAR ownership and the teams that populate the field.
The outcome of the Denny Hamlin NASCAR lawsuit could determine not only the future of 23XI Racing but may also set new standards for how revenue is divided among teams, drivers, and the league itself. With Hamlin, Michael Jordan, and other teams demanding reform, motorsport fans and industry stakeholders will be closely watching for potential changes that may reshape the landscape of NASCAR in the coming years.
In testimony today, @dennyhamlin said he filed the antitrust suit against #NASCAR because “it’s time for a change”. His disdain for NASCAR was obvious as Hamlin occasionally became angry on the witness stand.
— Deb Williams (@DebWilliams72) December 2, 2025
When pressed on why he didn’t say anything negative about the Next Gen car on the @Kenny_Wallace podcast, Hamlin said because if he says anything negative about #NASCAR, he gets a lashing. So, when he speaks publicly, he delivers the positive talking points that they give him.
— Toby Christie (@Toby_Christie) December 2, 2025
