CHARLOTTE, N.C. (AP) — Three-time Daytona 500 winner Denny Hamlin outlined the precarious situation facing NASCAR teams, testifying Tuesday in the federal antitrust trial against the stock car series that the race team he co-owns spent more than $700,000 to the series in 2022 alone and how agreeing to its charter proposal last fall would have been like signing his own “death certificate.”
Hamlin was the first witness called when testimony began Monday in the antitrust case brought by 23XI Racing, which is owned by Hamlin and Basketball Hall of Famer Michael Jordan, and Front Row Motorsports, owned by fast-food franchiser Bob Jenkins. The two teams contend that NASCAR is a monopoly that has handcuffed teams with a no-win revenue model.
Hamlin returned to the stand for more than three hours and was asked about line items in 23XI Racing’s budget. He noted how more than $703,000 three years ago was spent on costs to NASCAR ranging from entry fees, credentials for team members to enter the track and even access to Internet signals. He also said he and Jordan spent $100 million to build 23XI and “all it takes is one sponsor to go away and all our profit is gone.”
All 15 of NASCAR’s teams had been vocal for over two years that the last charter agreement made it impossible for them to turn a profit and they demanded four changes in prolonged negotiations. When the final offer came from NASCAR and lacked most of what the teams asked for, 23XI and Front Row refused to sign and instead sued.
23XI has turned a profit in all but one of its five seasons, but its financial success is largely a product of Jordan’s star power drawing top-dollar sponsors. Plaintiffs’ attorney Jeffery Kessler told the jury Monday that a NASCAR-commissioned study found that 75% of teams lost money in 2024.
Hamlin testified that the TV deal NASCAR signed ahead of the 2025 season has not been a boon to race teams because of a shift toward streaming services and big-ticket sponsors want to be on television. He also referred to a meeting with NASCAR chairman Jim France, who indicated teams are spending too much and it should only cost $10 million per car. Hamlin testified it costs $20 million.
“We cannot cut more. Tell me how to get my investment back? He had no answer,” Hamlin said.
As for refusing to sign the charter agreements last fall, Hamlin said the last-ditch proposal from NASCAR “had eight points minimum that needed to be changed. When we pointed that out we were told ‘Negotiations are closed.’”
“I didn’t sign because I knew this was my death certificate for the future,” he said, later adding: “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.”
Under cross-examination, Hamlin was asked why he paints a rosier picture of NASCAR on podcast appearances. He replied that he is regurgitating NASCAR talking points because any negative comments can lead to 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.
NASCAR is owned and operated by the Florida-based France family, which founded the series in 1948. Kessler said over a three-year period almost $400 million was paid to the France Family Trust and a 2023 evaluation by Goldman Sachs found NASCAR to be worth $5 billion. The pretrial discovery process revealed NASCAR made more than $100 million in 2024, while Jenkins testified in a deposition he has lost $60 million over the last decade and $100 million since starting his team in 2004.
NASCAR contends it is doing nothing wrong and has not restrained trade or commerce by its teams. The series says the original charters were given for free to teams when the system was created in 2016 and the demand for them created a market of $1.5 billion in equity for chartered organizations.
Hamlin countered that 11 of the original 19 chartered organizations are out of business; all three of 23XI’s charters came from teams that ceased operations. NASCAR also said each chartered car now receives a guaranteed $12.5 million in annual revenue, up from $9 million. Hamlin testified it costs $20 million to bring a single car to the track for all 38 races and that figure does not include any overhead, operating costs or a driver’s salary.
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