Hamlin Reveals Financial Crisis in NASCAR: Risk of “Death Sentence”

Denny Hamlin Details the Difficult Financial Situation of NASCAR Teams

Three-time Daytona 500 winner Denny Hamlin has exposed the delicate situation facing NASCAR teams. During his testimony in the antitrust trial against the series, Hamlin revealed that the team he co-runs invested more than $700,000 in 2022 alone. In addition, he pointed out that accepting the series’ proposal last fall would have been like signing his “death warrant”. Hamlin, owner of 23XI Racing along with Basketball Hall of Famer Michael Jordan, was the first witness in the antitrust case filed by 23XI Racing and Front Row Motorsports. The teams argue that NASCAR is a monopoly that limits their chances of making a profit. For over three hours, Hamlin detailed 23XI Racing’s expenses, including over $703,000 allocated to NASCAR for costs such as registration fees, credentials, and internet access. He also mentioned the $100 million investment that he and Jordan made to build 23XI, highlighting that the loss of a sponsor could significantly affect their profitability. The fifteen NASCAR teams had expressed their concern for two years about the charter agreement, which prevented them from making profits. They demanded four changes in the negotiations, but not being included in the final offer, 23XI and Front Row chose to sue.

Although 23XI has been profitable in most of its five seasons, its financial success largely depends on attracting high-value sponsors thanks to Jordan’s fame. A study commissioned by NASCAR revealed that 75% of the teams lost money in 2024.

Hamlin also testified that NASCAR’s television deal for the 2025 season has not benefited the teams due to the shift towards streaming services. In addition, he recounted a meeting with NASCAR president Jim France, who suggested that the teams spend too much, with an ideal cost of $10 million per car, while Hamlin claims the actual cost is $20 million.

“We can’t cut anymore. How do I get my investment back?”, Hamlin stated, adding that France had no answer.

Denny Hamlin

Regarding the refusal to sign the letter agreements, Hamlin explained that NASCAR’s final proposal required minimal changes in eight points. Upon pointing this out, they were informed that the “negotiations had concluded”. “I didn’t sign because I knew it was my death sentence for the future,” said Hamlin, who has dedicated two decades to promoting the sport as a driver and team owner. In cross-examination, Hamlin explained that he presents a more optimistic image of NASCAR in his podcast appearances to avoid retaliation for negative comments.

“You can take my words out of context and paint a picture that everything is fine. The reality is that being negative affects me in technical inspections and in calls to the tow truck,” Hamlin said.

Denny Hamlin

The trial is expected to last two weeks. NASCAR, founded in 1948 by the France family, is at the center of this conflict. The discovery process revealed that NASCAR made over $100 million in 2024. Front Row Motorsports owner, Jenkins, testified that he has lost $60 million in the last decade and $100 million since starting his team in 2004. NASCAR argues that it has not restricted the trading of its teams. The series claims that the original charters were given away for free in 2016, creating a $1.5 billion market. However, Hamlin pointed out that eleven of the nineteen original organizations have gone bankrupt, and that the three charters of 23XI come from teams that ceased operations. NASCAR also indicates that each chartered car now receives $12.5 million in annual revenue, up from the previous $9 million. Hamlin testified that the cost of bringing a car to the track for the 38 races is $20 million, not including overhead, operating expenses, or the driver’s salary.