Denny Hamlin Calls NASCAR a Monopoly in Fiery Antitrust Testimony

23XI Racing co-owner Denny Hamlin admitted Tuesday it’s OK for the NASCAR Cup teams to demand exclusivity and international property rights of their drivers, but it’s unfair for the sanctioning body to require the same thing of the teams competing in its Cup Series.

“When you have options, it’s different from a monopoly where you don’t,” an angry Hamlin said towards the end of his nearly four-and-a-half hours of federal court testimony over a two-day period.

Hamlin explained that it’s fair to make that request of 23XI Racing’s drivers because the drivers have the option to go somewhere else to compete. However, it’s not fair for NASCAR to make the same demands of its Cup teams because there’s not another premier stock car racing series where they can compete.

Hamlin was the first witness to testify in the antitrust trial in US District Court in Charlotte, North Carolina. 23XI Racing and Front Row Motorsports filed the antitrust suit against NASCAR after the two teams refused to sign the new Charter agreement that began in 2025. They allege NASCAR has engaged in anti-competitive acts and is paying the teams below market value. NASCAR disagrees. Hamlin says 23XI Racing decided to take the legal action “because it’s time for a change.”

Hamlin believes NASCAR should fund the teams’ basic operating costs, which have been placed at $20 million per car, thus reducing the teams’ dependence on sponsorship money. He maintained under questioning by NASCAR attorney Lawrence Buterman that if the team lost one of its sponsors it would lose all of its profits.

“I need Michael Jordan to operate this team,” Hamlin said when talking about the large amount Jordan brings to the team. “If he decides this is stupid (financially), I’m done.”

During Hamlin’s testimony, he continuously, sometimes angrily, referred to NASCAR as a monopoly, and said the Cup teams collectively lost $88 million last year.

Hamlin called the current Charter agreement signed by 13 teams a “horrible” deal, and “absolutely unfair”.

“I don’t believe we would be in business 10 years from now if we had signed (the new Charter agreement),” Hamlin said. “It was a hard decision not to sign.”

In a 2024 letter Hamlin sent to then NASCAR President Steve Phelps, the 23XI Racing co-owner listed eight changes needed to the Charter agreement before the team would sign it. They were:

• A seven-year agreement tied to the new media rights contract with the pool payouts presented in the most recent draft.

• Good faith negotiations language for a potential renewal after year seven.

• No noncompete language for a potential renewal after year seven.

• Reasonable protection rights regarding unilateral decisions by NASCAR that increase fees and costs to compete in the Cup Series by a material dollar amount.

• Acceptance of the Driver Incentive Plan as proposed at the dollar level proposed and share in its cost off the top of the media rights payouts. The team would not share in the cost of any increase to the plan over the seven years beyond some reasonable annual growth rate (CPI or annual growth in media rights deal).

• Would not agree to NASCAR paying drivers any other direct payments during the term.

• Would not provide team IP rights to NASCAR unless there was a negotiation that resulted in a meaningful share of revenue generated by those IP rights.

• “To the extent that NASCAR wants to utilize our team IP to promote the sport, we will use our best efforts to help make those rights available.”

23XI Racing majority owner Michael Jordan listened with a solemn face as Buterman attempted to expose contradictions in Hamlin’s statements while revealing his personal and the team’s finances. During Buterman’s question of Hamlin, it was learned:

• Hamlin’s salary as a driver for Joe Gibbs Racing is $14 million.

• Hamlin and Jordan own the $35 million Airspeed building where 23XI Racing is housed. They charged their race team $1 million in rent in 2024.

• Hamlin has personally invested $45 million in 23XI Racing.

• Financially, Hamlin is responsible for 40% of the race team and 50% of the building. He still owes Jordan money for the building.

• According to one of 23XI Racing’s experts, the team was worth $160.2 million four years after it began racing.

• 23XI Racing pays its drivers 22% of the team’s revenues.

Hamlin admitted that NASCAR had a right to govern the sport, “but not affect our costs as much as they do,” citing changes on the Gen 7 car and putting international races on the schedule.

Hamlin said he was adamantly opposed to the Driver Ambassador Program NASCAR implemented this year, which was part of the 2026 Charter agreement. Under the program, NASCAR runs a competition among the drivers that awards them points for making various appearances in an effort to “grow the sport.” NASCAR pays the drivers directly for their participation in the program.

“It is the one that bothers me the most,” Hamlin said about the program outlined in the 2025 Charter agreement. “NASCAR took our most valuable asset that we use to sell our sponsors. This is wrong because it hurts the teams in the long run.”

The trial, which is expected to take 10 days, resumes Wednesday at 9 a.m. ET.