Denny Hamlin, co-owner of 23XI Racing, sharply criticized NASCAR’s control over its Cup Series on Tuesday, claiming the organization holds monopoly power in the sport. During an intense antitrust trial in Charlotte, North Carolina, Hamlin argued that NASCAR’s restrictive demands on teams are unfair and highlighted his own push for reform as central to the ongoing case focused on Denny Hamlin NASCAR antitrust testimony.
Hamlin Challenges NASCAR’s Exclusive Demands in Federal Court
As the first witness in the US District Court’s antitrust proceedings, Denny Hamlin asserted that while 23XI Racing rightfully expects its drivers to sign exclusive contracts and hand over some intellectual property rights, this practice is only fair because drivers still have the freedom to join rival teams or race in alternative series. In contrast, Hamlin argued, NASCAR’s exclusive requirements corner teams into accepting terms with virtually no alternatives, stating there is no other premier stock car racing league where they can compete at a similar level.
Hamlin’s passionate testimony spanned more than four hours across two days. He insisted the lawsuit, filed by 23XI Racing and Front Row Motorsports after both teams refused to sign NASCAR’s new Charter agreement commencing in 2025, was necessary to force change within the sanctioning body. The teams accuse NASCAR of anti-competitive behavior and paying far less than the market value, while NASCAR defends its contracts as fair. Hamlin explained the motivation behind taking legal action:
“because it’s time for a change.”
—Denny Hamlin, Co-owner, 23XI Racing.
Financial Challenges and the Role of Michael Jordan
Hamlin emphasized that the current system, which depends heavily on sponsorship dollars, leaves teams financially unstable. He argued that if NASCAR funded baseline operating costs—estimated at $20 million per car annually—teams would be less exposed to the whims of commercial partnerships. Under questioning from NASCAR lawyer Lawrence Buterman, Hamlin revealed the team risks losing all profits if a sponsor withdraws support and acknowledged the critical importance of 23XI Racing majority owner Michael Jordan’s investment:
“I need Michael Jordan to operate this team,”
—Denny Hamlin, Co-owner, 23XI Racing.
“If he decides this is stupid (financially), I’m done.”
—Denny Hamlin, Co-owner, 23XI Racing.
Hamlin described NASCAR’s business practices as “monopolistic” and presented an alarming financial picture, claiming that the collective Cup teams lost $88 million last year. He labeled the new Charter agreement, which 13 teams have already signed, as horrible and absolutely unfair.
He warned of dire consequences if forced into NASCAR’s new agreement:
“I don’t believe we would be in business 10 years from now if we had signed (the new Charter agreement),”
—Denny Hamlin, Co-owner, 23XI Racing.
“It was a hard decision not to sign.”
—Denny Hamlin, Co-owner, 23XI Racing.
Hamlin’s Demands for Charter Reform
In a detailed 2024 letter to then NASCAR President Steve Phelps, Hamlin outlined eight key changes he considered essential for 23XI Racing to sign a new Charter deal:
- A seven-year Charter aligned with the latest media rights contract and pool payouts.
- Obligatory good-faith negotiations for extension after the seventh year.
- No restrictive noncompete clauses for the potential renewal.
- Reasonable protections to prevent unilateral decisions by NASCAR from raising fees or costs substantially.
- Team approval and cost-sharing only for the proposed Driver Incentive Plan, excluding further increases beyond reasonable yearly growth.
- No extra direct driver payments from NASCAR during the Charter’s term outside the agreed plan.
- Negotiation for team intellectual property rights with meaningful revenue sharing if NASCAR benefits from those rights.
- Collaboration to make team IP available for sport promotion, at NASCAR’s request.
Inside 23XI Racing’s Finances and Hamlin’s Personal Investments
During cross-examination, details emerged about Denny Hamlin’s extensive financial involvement in 23XI Racing. His salary as a driver for Joe Gibbs Racing stands at $14 million, and together with Michael Jordan, he owns the $35 million Airspeed building that houses their race team, charging $1 million in rent in 2024. Hamlin has invested $45 million directly into 23XI and is responsible for 40% ownership of the team and 50% of the building, though he continues to owe Jordan for the remainder of the property. A team expert testified 23XI Racing’s valuation reached over $160 million just four years into its existence. Notably, 23XI pays its drivers 22% of its revenues.
Conflicts Over NASCAR’s Rules and New Programs
Hamlin acknowledged NASCAR’s authority to govern the sport, but objected to sweeping rule changes—like the introduction of the Gen 7 car and international race expansion—that significantly raised teams’ costs:
“but not affect our costs as much as they do,”
—Denny Hamlin, Co-owner, 23XI Racing.
Hamlin voiced his strongest opposition yet to NASCAR’s Driver Ambassador Program, part of the upcoming 2026 Charter agreement, in which drivers compete for points by making public appearances. NASCAR now pays participating drivers directly, rather than routing compensation through teams. Hamlin contended this directly undermines team finances:
“It is the one that bothers me the most,”
—Denny Hamlin, Co-owner, 23XI Racing.
“NASCAR took our most valuable asset that we use to sell our sponsors. This is wrong because it hurts the teams in the long run.”
—Denny Hamlin, Co-owner, 23XI Racing.
What Comes Next in the Antitrust Case
The federal trial, which could last up to 10 days, continues with further testimony from NASCAR and additional stakeholders. As the case proceeds, the outcome is poised to significantly influence the power dynamic between race teams and NASCAR, particularly over financial control and governance of intellectual property. The court’s decision may impact not just Denny Hamlin and Michael Jordan’s 23XI Racing, but the broader landscape of American motorsports and how authority is shared between sanctioning bodies and teams. The case resumes Wednesday morning in Charlotte, with all eyes in the racing community closely following the developments.
