Hamlin Opens NASCAR Antitrust Showdown in Charlotte

NASCAR Cup driver and 23XI Racing co-owner Denny Hamlin said Monday in federal court in Charlotte, North Carolina, that he doesn’t like the Charter system because it’s not fair.

“It’s unfair because the costs aren’t covered to put on their (NASCAR) show,” Hamlin said. “Only one side is going out of business.”

Hamlin was the first witness called in the antitrust trial.

23XI Racing and Front Row Motorsports filed an antitrust suit against NASCAR, claiming the sanctioning body has engaged in anti-competitive acts and is paying the teams below market value. NASCAR disagrees.

Since witnesses are being sequestered, Hamlin’s legal team decided to call him first so he could be in the federal courtroom during expert witness testimony. NASCAR had sought to have Hamlin and 23XI Racing co-owner Curtis Polk sequestered with the other witnesses. Michael Jordan, also a witness, was allowed in the courtroom since he’s the majority owner of 23XI Racing. NASCAR CEO Jim France and NASCAR executive Lesa France Kennedy are scheduled to testify but are allowed in the courtroom because France is named in the antitrust suit and Kennedy is NASCAR’s representative.

During Hamlin’s testimony, which will resume Tuesday morning, the six-man-three-woman jury heard the Joe Gibbs Racing driver recount 23XI Racing’s finances. He said it cost $20 million to put a car on the track annually and that didn’t cover other team expenses, such as sponsor activation, social media, and human resources. Hamlin also noted the team has an $8 million a year service agreement with JGR, the team for which he drives. That agreement provides information and other services that allows 23XI Racing to operate with 140 people.

Under questioning by attorney Jeanifer Parsigian, Hamlin testified that 23XI Racing paid $4.7 million in 2020 for its first Charter that it purchased from Germain Racing after that team “lost its sponsor to NASCAR.” Hamlin said that as a minority owner, he was required to pay 40% of each Charter purchase.

Hamlin said in 23XI Racing’s second year of operation it bought its second Charter from StarCom Racing for $13.5 million. When Stewart-Haas Racing announced in 2024 that it was closing its doors at the end of that season, 23XI Racing bought one of the three Charters it was selling for $28 million. He also said 23XI Racing’s headquarters, known as Airspeed, cost $35 million to build. He explained it was necessary to spend that amount of money on a facility because 23XI Racing was in competition with other race teams and NASCAR to acquire sponsors. He said in 2021, the first year the team fielded an entry in NASCAR’s Cup Series, the team spent $18 million and came away with a $400,000 profit. Hamlin also said that 2022-24, the team generated $40 million in sponsorship money because of Jordan’ involvement with the team.

When Jordan was asked how he felt the day went as he left the courthouse he replied, “I can’t comment. They told me to shut up.”

The trial is expected to take two weeks.