Denny Hamlin, NASCAR driver and co-owner of 23XI Racing alongside basketball icon Michael Jordan, have launched a high-stakes antitrust lawsuit against NASCAR, focusing national attention on the Denny Hamlin NASCAR lawsuit. The suit, filed jointly with Front Row Motorsports, alleges that NASCAR’s business model and updated charter agreements for the 2025 season put teams at a severe financial disadvantage, a claim now being tested in federal court.
Owners Challenge Structure Behind NASCAR’s Charter System
The legal dispute goes to the heart of NASCAR’s franchise-like charter system. Introduced in 2016, the system provides teams with a guaranteed entry to all races as well as a share of event revenues. However, Hamlin and Jordan argue that the latest agreement not only reduces profitability for teams, but also endangers their long-term survival in the Cup Series.
Testifying early in the trial, Denny Hamlin outlined the stark economic realities facing Cup team owners. He reported that fielding a single car for a full 38-race season requires about $20 million in operating costs. By contrast, the charter payments under the new agreement amount to approximately $12.5 million per car. Without major sponsorships, teams are forced to operate at a substantial loss—conditions Hamlin argued are unsustainable.
“I didn’t sign because I knew this was my death certificate for the future. I have spent 20 years trying to make this sport grow as a driver and for the last five years as a team owner. 23XI is doing our part. You can’t have someone treat you this unfairly and I knew It wasn’t right. They were wrong and someone needed to be held accountable,” Denny Hamlin said (via Associated Press).
The plaintiffs contend the latest charter agreement is only one facet of a larger web of control by NASCAR. They allege NASCAR’s ownership of most major racetracks and strict limitations on parts suppliers for the Next Gen vehicles introduced in 2022 give the sanctioning body outsize influence, driving up costs and reducing competition within the sport.
Accusations of Monopolistic Practices and Financial Imbalance
Hamlin and Jordan, supported by Front Row Motorsports, are seeking $205 million in damages in what experts predict could reshape the future of U.S. motorsports governance. At the core of their claim is the assertion that NASCAR leadership and the France family—the sport’s founding lineage—have profited handsomely while race teams struggle.
During the ongoing federal trial, new evidence was presented revealing that three-quarters of the Cup Series teams posted losses in the 2024 season. Meanwhile, over the past three years, nearly $400 million reportedly made its way to a France family trust, intensifying accusations of economic imbalance.
Hamlin, Michael Jordan, and their legal partners argue that these practices threaten to undermine the viability of independent racing teams in the Cup Series. With NASCAR controlling key resources and limiting team revenues, the lawsuit frames this as a battle not only over franchise rights, but over the competitive future of the sport itself.
Potential Long-Term Impact for NASCAR and Its Teams
The trial, which began earlier this week, is expected to last two weeks, but insiders anticipate that the case may drag on for years if appeals follow the initial verdict. Should the plaintiffs prevail, NASCAR could be forced to restructure its agreements with teams, likely reshaping the competitive dynamics and financial flows in the Cup Series. The case has captured the attention of team owners, drivers, and governing officials across the motorsport world.
As the proceedings continue, the Denny Hamlin NASCAR lawsuit stands as a high-profile reckoning for a sport grappling with powerful stakeholders, fierce competition, and escalating costs. Its outcome may influence not just team finances, but the overall health and fairness of NASCAR racing for years to come.
