Denny Hamlin Raises Concerns Over NASCAR Charter Deal Impacting 23XI Racing

Denny Hamlin, a three-time Daytona 500 victor, expressed serious concerns about the financial burdens facing NASCAR teams at a federal antitrust trial. The co-owner of 23XI Racing, alongside Michael Jordan, disclosed that in 2022, the team incurred expenses exceeding $700,000 in NASCAR fees, indicating that the series' charter proposal could serve as a potential “death certificate” for the team.

Testifying for over three hours, Hamlin outlined the team's budget, which encompasses entry fees, track access costs, team credentials, and Internet connectivity expenses. He emphasized the need for a $100 million investment to establish 23XI Racing, adding that the loss of just one sponsor could erase profits.

The lawsuit, initiated by 23XI Racing along with Front Row Motorsports, claims that NASCAR acts as a monopoly and enforces a revenue structure that virtually eliminates profitability. According to a NASCAR-commissioned report, Hamlin reported that 75% of teams were unprofitable in 2024. He further indicated that recent television deals haven't helped teams as most sponsors favor conventional television over streaming options.

Hamlin recollected conversations with NASCAR officials, including chairman Jim France, who suggested that teams should limit spending to $10 million per car, significantly less than the $20 million he asserts is necessary for a full season. When the latest charter agreement overlooked essential concerns, 23XI opted not to sign.

“I didn’t sign because I understood it would be our death certificate going forward,” Hamlin stated. “23XI has been doing our part. It's unfair treatment, and I recognized that it was wrong. Accountability is crucial.”

During cross-examination, Hamlin acknowledged that his public endorsements of NASCAR are often pre-scripted to avoid repercussions such as increased inspections or other penalties.

The trial highlighted that NASCAR earned over $100 million in 2024, valuing the organization at $5 billion, based on a 2023 financial assessment. NASCAR contends it has not limited trade, asserting that chartered teams currently secure an annual revenue of $12.5 million—well below the $20 million Hamlin claims is necessary to operate a single car.

The testimony from 23XI Racing underscores the increasing friction between NASCAR's longstanding business framework and the financial challenges that modern race teams face, potentially altering the landscape of stock car racing.