The NASCAR lawsuit between 23XI Racing, Front Row Motorsports, and NASCAR entered Day 2 with long hours of tense testimony, as Denny Hamlin explained why his team chose to take the league to court.
Hamlin, who co-owns 23XI with Michael Jordan, walked the courtroom through financial numbers, past conversations with NASCAR leadership, and the reasons he believes the current system makes long-term team growth almost impossible.
He said the 2025 charter proposal would leave 23XI in a dangerous spot, and he described a tight financial picture that gives teams little room to survive. His answers stayed firm and detailed as lawyers pressed him on past comments and internal team practices.
Denny Hamlin Calls 2025 Charter Agreement a “Death Certificate”
Hamlin told the court that the proposed 2025 charter deal would put 23XI at major risk. The Athletic’s Jeff Gluck and Jordan Bianchi report Hamlin calling the offer “essentially my (team’s) death certificate for the future,” saying the team would “not… in business if we sign this (within) 10 years.” He argued that the current system pays teams a fixed amount instead of giving them a set share of growing media revenue. In his view, that structure benefits NASCAR and the France family, while teams continue to face rising costs each season.
Hamlin also described a 2023 meeting with NASCAR chairman Jim France that left him “very, very discouraged.” According to Hamlin, France said the “problem in NASCAR is teams spend too much money and suggested that teams should operate on around $10 million per year. Hamlin told the court that this does not match real-life team spending needs, saying, “We’ve cut this grass so short, we’re down to the dirt.”
Financial Pressure Takes Center Stage in the NASCAR Lawsuit
Hamlin explained that 23XI runs with a small 2.26 percent profit margin. He said he owes Michael Jordan tens of millions of dollars in loans tied to team operations and buildings. When NASCAR’s attorney, Lawrence Buterman, asked why the teams were seeking $205 million in damages, Hamlin replied, “We want to be made whole for what you guys did to us.”
Autoweek’s Deb Williams wrote, “In testimony today, Denny Hamlin said he filed the antitrust suit against NASCAR because ‘it’s time for a change. “
NASCAR attorney showed examples of Hamlin praising NASCAR’s business model and the Next Gen car, including comments from the Kenny Wallace podcast. Hamlin said those comments did not reflect what he truly believed, explaining, “All my public (comments) are out of context… You give me talking points, I say it to make fans feel happy.”
Racing America’s Toby Christie reported a similar exchange. “When pressed on why he didn’t say anything negative about the Next Gen car on the Kenny Wallace podcast, Hamlin said, because if he says anything negative about NASCAR, he gets a lashing. So, when he speaks publicly, he delivers the positive talking points that they give him.”
NASCAR Questions 23XI’s Own Internal Choices
NASCAR attorney argued that 23XI uses restrictive practices too, pointing to attempts to “lock up” Corey Heim, paying drivers a smaller revenue share than NASCAR pays teams, and putting Riley Herbst under an exclusivity clause.
Hamlin replied, “We are not a monopoly. The driver has options. That’s the difference. It’s not anti-competitive if the driver has options.”
His point was that drivers can move to other teams, while NASCAR controls the entire top level of the sport.
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