rifan muazinThe courtroom on Tuesday morning became the latest stage for the simmering dispute between Denny Hamlin, co-owner of 23XI Racing and a prominent NASCAR Cup Series driver, and the sport’s governing body, NASCAR, as his cross-examination concluded in the ongoing antitrust lawsuit filed by 23XI Racing and Front Row Motorsports. The proceedings, characterized by a measured yet emotionally charged exchange between Hamlin and NASCAR’s antitrust defense counsel, Lawrence Buterman, laid bare the fundamental disagreements over the sport’s economic structure and regulatory framework.
Hamlin repeatedly characterized NASCAR as a "monopoly," directly contrasting it with the competitive landscape he believes teams and drivers should operate within. His pointed use of the word "you" in these assertions was widely perceived as a direct challenge to NASCAR’s leadership, including the France family. This adversarial stance was evident when Buterman attempted to draw parallels between a contract signed by driver Riley Herbst with 23XI, which restricts him from competing in other series without permission, and NASCAR’s alleged anticompetitive exclusivity provisions. Hamlin countered by emphasizing the distinction: "We aren’t a monopoly. You are. I believe it’s different when you have options and drivers have options of what teams they can race for."
The line of questioning also delved into the financial arrangements between drivers and teams. Buterman scrutinized the percentage of overall team revenue that drivers typically receive through their contracts, comparing it unfavorably to the revenue NASCAR distributes to teams. Hamlin defended this disparity by citing the significant operational costs incurred by teams, a point Buterman challenged by highlighting NASCAR’s own expenses. Despite this, Hamlin reiterated his assertion that NASCAR operates as a monopoly, arguing that drivers possess the freedom to choose where they offer their racing services.
A text message exchange between Hamlin and his 23XI co-owner, Michael Jordan, regarding the signing of driver Corey Heim to a long-term contract, was also introduced. Buterman sought to equate Jordan’s instruction to "lock him up" with NASCAR’s alleged practice of "locking tracks up" in a manner deemed anticompetitive.
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A pivotal moment in Hamlin’s testimony, which occurred during his direct examination by attorney Jeanifer Parsigian, illuminated his personal frustration with NASCAR CEO Jim France. Hamlin recounted a conversation during the December 2022 NASCAR Awards Banquet in Nashville that left him "very, very discouraged" due to their divergent views on NASCAR’s financial future. France reportedly stated that the primary issue within NASCAR was excessive team spending, suggesting that teams should operate with budgets closer to $10 million per car, rather than the approximately $20 million then being spent.
Hamlin conveyed his disbelief at this suggestion, explaining that halving operational budgets was not a realistic solution for growth. "Cutting is not growth. I can’t cut my costs in half. It’s not realistic," Hamlin recalled telling France, noting that NASCAR had already curtailed race weekend lengths and practice sessions. He metaphorically described the situation as having "cut this grass so short that we are down to the dirt." Despite France’s acknowledgement of Hamlin as the "type of owner that NASCAR wants in the sport," rather than a purely financial investor, Hamlin emphasized his inability to further reduce costs and highlighted his substantial investment in NASCAR. He expressed a desire to avoid becoming another statistic of a defunct racing team owner. According to Hamlin, France offered no viable alternative during their discussion.
During the cross-examination, Buterman presented NASCAR’s offer of a seven-year agreement with an additional seven-year extension option, as opposed to permanent charters, which he characterized as a favorable term. Hamlin, however, viewed these optional seven years as problematic due to their fixed terms, which would not be tied to revenue fluctuations like the initial seven years, and crucially, could not be renegotiated. He stated that 23XI Racing would not be in business today if they had accepted such terms, explaining that NASCAR could potentially secure significantly more lucrative broadcast rights deals after 2031, while the option clause would permit them to continue paying teams "no less than what they make now." Hamlin responded with a dry "Well, thank you, I appreciate that." He further argued, "You force us to buy all the cars, the components … we don’t own any of that … how ridiculous is that."
Buterman also focused on Hamlin’s demand for $105 million in damages, which represents a 900% return on his initial $45 million investment as a 40% owner of 23XI Racing. Michael Jordan and Curtis Polk collectively own the remaining 60% of the organization. Hamlin asserted, "We want to be made whole for what you did to us," directing his remarks, as he had earlier, towards NASCAR’s leadership.
It was revealed in court that Hamlin earns $14 million annually from his current contract with Joe Gibbs Racing. When questioned about his higher compensation compared to most drivers, Hamlin attributed it to being "at the top of my game."
Further contention arose over the Driver Ambassador Program (DAP), which Hamlin identified as a particular point of frustration for him as a team owner, despite its personal financial benefit to him as a driver. Initiated this year and codified within the charter agreement, the DAP compensates drivers for promoting the sport. Hamlin’s primary objection is that the program diverts the teams’ most valuable assets – their drivers – to promote NASCAR initiatives rather than those of their respective teams. Under the current structure, teams contribute 40% of the DAP funding. Hamlin argued that NASCAR leverages drivers to sell tickets and generate revenue, while teams receive no return on investment from this arrangement.
When Buterman inquired if Hamlin opposed drivers being compensated, Hamlin clarified, "We pay drivers, not NASCAR." Buterman countered by noting that "most drivers don’t have a $14 million salary like you do." Hamlin responded that most drivers do not achieve his level of race wins per season.
NASCAR’s legal team aimed to portray Hamlin as an unreliable or disingenuous witness, citing instances where his public statements appeared to contradict his legal arguments. For example, during an appearance on the Kenny Wallace Show, Hamlin offered generally positive commentary on the Next Gen car’s cost-containment potential, and in the Netflix series "Full Speed," he described the car as lowering the barrier to entry for new teams and a "net positive for the sport." However, in the current lawsuit, the single-source nature of the car is cited as an instrument for maintaining a monopsony.
Hamlin explained this discrepancy by stating, "Because if I say anything bad, I get a lashing from NASCAR. So, publicly, it’s all sunshine and rainbows. My job is to take the talking points NASCAR says to me and say them publicly. If it’s anything bad, I get a phone call from NASCAR." He further elaborated that he is subject to inspection and that NASCAR "can dictate how I do." This led Buterman to question the jury’s ability to take Hamlin’s testimony seriously if he sometimes expresses sentiments he does not genuinely hold. Hamlin dismissed this assertion as "nonsense," arguing that his public statements are intended to foster positivity among fans and that he is provided with talking points to achieve this.
Buterman also introduced prior communications from 23XI executives, including Gene Mason, Jordan, and Polk, with Polk reportedly describing Hamlin as a "terrible businessman" who "spends money recklessly." Hamlin countered that while 75% of NASCAR teams lost money, 23XI did not, despite competing for wins and championships. He stated he was not offended by his partners’ remarks, as it was "their job to keep us in check." He cited the $35 million AirSpeed facility as an example, where Polk initially objected to the cost. Hamlin explained that Polk’s reservations stemmed from the ongoing charter negotiations and dissatisfaction with their terms, but this did not signify a disagreement with the underlying vision for the facility. He emphasized that his and Jordan’s primary motivation is to win, a pursuit that inherently involves significant expenditure.
The defense also highlighted a perceived contradiction between Hamlin’s long-term commitment to NASCAR expressed to Jim France and a subsequent text message to Jordan in August 2023, indicating a desire to be bought out of his 23XI ownership. Hamlin clarified that he was merely frustrated with the decision-making power at that particular moment and that he and his leadership team subsequently discussed and resolved the issue. He characterized such disagreements as typical within any business enterprise, asserting that their leadership team always manages to "figure it out."
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