Denny Hamlin Testifies in NASCAR Antitrust Trial, Accuses Governing Body of Monopoly Practices

Charlotte, NC – Denny Hamlin, a prominent NASCAR Cup Series driver and co-owner of 23XI Racing, presented a forceful defense of his team’s position and launched sharp criticisms against NASCAR during his testimony Tuesday in the ongoing antitrust lawsuit. The trial, brought forth by 23XI Racing and Front Row Motorsports against NASCAR, centers on allegations of anticompetitive practices by the sport’s governing body. Hamlin’s cross-examination by NASCAR’s antitrust defense lawyer, Lawrence Buterman, revealed a palpable tension, even within the structured confines of a courtroom, as Hamlin repeatedly characterized NASCAR as a monopoly while asserting the autonomy of teams and drivers.

The core of Hamlin’s argument, articulated throughout his testimony, is that NASCAR operates as a monopolistic entity, limiting options and stifling growth for its constituents. He directly contrasted this with the operations of teams like 23XI Racing, stating, "We are not a monopoly like you are," a sentiment delivered with an intensity that appeared aimed not just at Buterman, but at the broader NASCAR leadership, including the France family.

A key point of contention arose when Buterman attempted to draw parallels between a contract signed by driver Riley Herbst with 23XI Racing and NASCAR’s alleged exclusivity provisions. Herbst’s agreement, which restricts him from racing in other series without permission, was presented by Buterman as analogous to NASCAR’s practices. Hamlin, however, countered vehemently, 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." This statement underscores Hamlin’s belief in a competitive marketplace for driver talent, a stark contrast to his view of NASCAR’s control over its ecosystem.

The discussion then shifted to the financial arrangements between drivers and teams. Buterman questioned Hamlin about the percentage of overall team revenue that drivers receive in their contracts, suggesting it was a smaller portion than what NASCAR distributes to teams from its own revenue streams. Hamlin defended this by highlighting the significant operational costs incurred by teams, costs that NASCAR, as a sanctioning body, does not bear in the same manner. Despite Buterman’s counterarguments regarding NASCAR’s own expenses, Hamlin reiterated his accusation of NASCAR being a monopoly, stating, "We are not a monopoly like you… drivers have options of where to take their services."

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The conversation also touched upon internal team communications, specifically a text message exchange between Hamlin and 23XI co-owner Steve Jordan regarding the signing of driver Corey Heim to a long-term contract. Jordan’s instruction to "lock him up" was presented by Buterman as potentially mirroring NASCAR’s alleged practice of "locking tracks up." This line of questioning aimed to demonstrate a perceived hypocrisy in Hamlin’s stance on exclusivity and control.

A significant portion of Hamlin’s testimony delved into his personal interactions with NASCAR CEO Jim France. Hamlin recounted a conversation during the December 2022 NASCAR Awards Banquet in Nashville, which left him "very, very discouraged" due to a fundamental disagreement over the sport’s financial realities. According to Hamlin, France stated that the primary issue in NASCAR was "that teams spend too much money," suggesting that teams should operate with a $10 million per car budget, a stark contrast to the approximate $20 million being spent at the time. Hamlin found this proposition unrealistic, arguing that cutting operating budgets in half was not a viable path to growth, especially after NASCAR had already reduced race weekend lengths and practice sessions. He famously told France, "We’ve cut this grass so short that we are down to the dirt."

Despite France reportedly calling Hamlin "the type of owner that NASCAR wants in the sport," rather than a "New York private equity investor," Hamlin expressed his inability to further reduce costs. He conveyed that he had "invested" in NASCAR and did not wish to become another statistic of a team owner forced out of business. When pressed on France’s response, Hamlin stated that France "had no answer."

During the cross-examination, Buterman presented NASCAR’s offer of a seven-year agreement with an additional seven-year extension option, highlighting it as a positive term in contrast to the teams’ rejection of permanent charters. However, Hamlin dismissed this offer, explaining that the terms of the second seven-year period were fixed and not tied to revenue percentages, rendering them unnegotiable. He asserted that 23XI Racing would not be in business today had they accepted such terms, particularly given the potential for significantly larger broadcast rights deals after 2031, while the option would lock teams into receiving no less than their current revenue. Hamlin sarcastically responded, "Well, thank you, I appreciate that." He also raised concerns about the ownership structure of car components, stating, "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 request for $105 million in damages, which represents a substantial return on his initial $45 million investment as a 40% owner of 23XI Racing, with Michael Jordan and Curtis Polk owning the remaining 60%. Hamlin responded by stating, "We want to be made whole for what you did to us," a declaration seemingly directed at the NASCAR leadership.

The court also heard that Hamlin earns $14 million annually from his current contract with Joe Gibbs Racing. When questioned about his high salary, Hamlin attributed it to being "at the top of my game," a testament to his performance and value in the sport.

A particular point of contention for Hamlin as a team owner was the Driver Ambassador Program (DAP). Despite personally benefiting from it as a driver, Hamlin expressed his strong reservations. The DAP, codified in the charter agreement and initiated this year, compensates drivers for promoting the sport. However, Hamlin argues that it diverts the teams’ most valuable assets—their drivers—to promote NASCAR initiatives rather than their own team’s brand. Given that teams contribute 40% of the DAP funding, Hamlin feels teams receive no return on investment from this arrangement, where NASCAR leverages drivers to sell tickets and enhance its own image. When Buterman inquired if Hamlin opposed drivers being paid, Hamlin retorted, "We pay drivers, not NASCAR." Buterman pointed out that most drivers do not command a $14 million salary, to which Hamlin responded that most drivers do not achieve his level of success in terms of race wins per season.

NASCAR’s legal team worked to portray Hamlin as an inconsistent witness, highlighting instances where his public statements appeared to contradict his current legal claims. Buterman referenced Hamlin’s appearance on the Kenny Wallace Show, where he offered generally positive remarks about the Next Gen car’s cost-containment potential. Similarly, in the Netflix series "Full Speed," Hamlin 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 alleged tool for NASCAR to maintain a monopsony.

Hamlin explained this apparent discrepancy by stating, "Because if I say anything bad, I get a lashing from NASCAR. So, publicly, it’s all sunshine and rainbows." He elaborated that his public role often required him to echo NASCAR’s talking points to maintain harmony, adding, "If it’s anything bad, I get a phone call from NASCAR." He felt that NASCAR dictated his public commentary, stating, "you can dictate how I do." When Buterman questioned the jury’s ability to trust Hamlin’s testimony, given these instances of seemingly insincere public statements, Hamlin dismissed the assertion as "nonsense." He maintained that his public persona was designed to foster positivity and support for the sport, stating, "What I do publicly is put out positivity. That’s my job. You guys give me talking points. I say it to make fans feel happy."

Further scrutiny fell upon communications from 23XI executives, including Gene Mason, Steve Jordan, and Curtis Polk, with Polk reportedly describing Hamlin as a "terrible businessman" who "spends money recklessly." Hamlin countered this by noting that while 75% of teams experienced financial losses, 23XI did not, all while contending for wins and championships. He expressed no offense at his partners’ remarks, characterizing them as part of their role "to keep us in check." He provided the example of the $35 million AirSpeed facility, which Polk initially objected to due to ongoing charter negotiations. Hamlin explained that while Polk disagreed with the expenditure given the uncertainty of the charter terms, it did not signify a disagreement with the overarching vision for the team. He reiterated that both he and Jordan are driven by a desire to win, a pursuit that inherently carries significant costs.

Buterman also confronted Hamlin with a text message sent in August 2023 to Jordan, expressing a desire to be bought out of his 23XI ownership, which appeared to contradict his earlier expressions of long-term commitment to NASCAR during the Nashville meeting with Jim France. Hamlin attributed this to frustration with the decision-making process at the time, explaining that such disagreements are normal within any leadership team. He described the situation as a moment where he had to "kick and scream" to gain attention for his desired course of action, ultimately concluding that he and his fellow leaders always "figure it out." This testimony highlighted the complex dynamics and internal pressures within team ownership, even as the broader legal battle against NASCAR’s practices continues.

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