Denny Hamlin Warns NASCAR Charter Deal Could Threaten 23XI Racing

Three-time Daytona 500 winner Denny Hamlin sounded the alarm on the financial pressures facing NASCAR teams during the federal antitrust trial against the stock car series. Hamlin, co-owner of 23XI Racing with Michael Jordan, revealed that his team spent over $700,000 on fees to NASCAR in 2022 alone and described the series’ charter proposal as a potential “death certificate” for his team.

Hamlin testified for more than three hours, detailing his team’s budget, including entry fees, track access, team credentials, and Internet connectivity costs. He stressed that building 23XI required a $100 million investment and that losing just one sponsor could wipe out profits.

The lawsuit, filed by 23XI Racing and Front Row Motorsports, argues that NASCAR operates as a monopoly and imposes a revenue model that makes turning a profit nearly impossible. Hamlin noted a NASCAR-commissioned study showing that 75% of teams lost money in 2024. He also explained that recent TV deals have not benefited teams because many sponsors prefer traditional television over streaming platforms.

Hamlin recounted discussions with NASCAR leadership, including chairman Jim France, who suggested teams should spend no more than $10 million per car—half of the $20 million Hamlin says is required to run a full season. When the latest charter agreement failed to address critical issues, 23XI refused to sign.

“I didn’t sign because I knew this was my death certificate for the future,” Hamlin said. “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.”

Under cross-examination, Hamlin admitted that his public praise of NASCAR is often scripted to avoid retaliation, including stricter inspections or other penalties.

The trial also revealed that NASCAR generated over $100 million in 2024 and is valued at $5 billion, according to a 2023 financial evaluation. NASCAR maintains it has not restrained trade, arguing that chartered teams now receive guaranteed revenue of $12.5 million annually—far below the $20 million Hamlin says it costs to run a single car.

23XI’s testimony highlights growing tension between NASCAR’s traditional business model and the financial realities of modern race teams, potentially reshaping the future of stock car racing.