Denny Hamlin Claims NASCAR Charter Deal Would Have Meant ’Death Certificate’ for 23XI Racing
CONCORD,N.C. – NASCAR driver and 23XI Racing co-owner Denny Hamlin testified Monday that signing the latest charter agreement offered by NASCAR would have been a “death certificate” for his teamS future, as a high-stakes trial over the sport’s revenue distribution model commenced in federal court. 23XI Racing and Front Row Motorsports are suing NASCAR, alleging the proposed charter terms were unfavorable and lacked key requests from teams.
The lawsuit stems from NASCAR’s attempt to finalize new charter agreements – 10-year contracts granting teams operational rights – ahead of the 2025 season. 23XI and Front Row refused to sign, arguing the deal failed to adequately address financial concerns and maintain a competitive balance. The trial centers on whether NASCAR has unfairly structured its financial arrangements, leaving many teams unprofitable despite the sport’s growing popularity.
Hamlin detailed the financial pressures facing race teams, stating it costs approximately $20 million per car to compete, while NASCAR Chairman Jim France suggested a $10 million budget should be sufficient.He further testified that the recent television deal, while lucrative hasn’t translated into increased revenue for teams due to a shift towards streaming platforms and sponsors prioritizing television exposure. A NASCAR-commissioned study reportedly found that 75% of teams lost money in 2024, despite 23XI Racing turning a profit in all but one of its five seasons – a success Hamlin attributes to the team’s ability to attract top-dollar sponsors thanks to Michael Jordan’s ownership stake.
During his testimony, Hamlin recounted a meeting where he presented eight minimum changes needed to the proposed charter agreement, only to be told by NASCAR officials that “Negotiations are closed.” He expressed frustration with what he perceives as unfair treatment, stating, “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.”
Hamlin also revealed he carefully manages his public comments about NASCAR, frequently enough echoing the sport’s talking points out of fear of retribution. “You can take all my things out of context and paint a picture that everything is fine,” he said. “The reality is,(being) negative affects me in (technical inspection),getting called to the hauler,NASCAR not liking what I said.”
The trial is expected to last two weeks and will likely set a precedent for the future financial relationship between NASCAR and its race teams.
