Denny Hamlin’s Fiery Testimony Dominates NASCAR Antitrust Trial as Teams Challenge Sanctioning Body’s Practices

Charlotte, NC – The courtroom buzzed with tension on Tuesday as Denny Hamlin, a prominent NASCAR Cup Series driver and co-owner of 23XI Racing, concluded his examination and cross-examination in the ongoing antitrust lawsuit filed by his team and Front Row Motorsports against NASCAR. The proceedings, marked by pointed exchanges and deeply held convictions, underscored the significant friction between team owners and the sport’s governing body.

During his testimony, Hamlin repeatedly articulated a core grievance: that NASCAR operates as a monopoly, stifling competition and limiting the autonomy of its constituent teams. This assertion was met with rigorous challenge by NASCAR’s antitrust defense attorney, Lawrence Buterman, whose cross-examination probed Hamlin’s business practices, contract negotiations, and public statements.

One pivotal exchange involved Buterman’s attempt to draw parallels between a contract signed by driver Riley Herbst with 23XI Racing, which restricts his ability to compete in other series without permission, and NASCAR’s alleged anti-competitive exclusivity provisions. Hamlin countered sharply, stating, "We are not 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, delivered with evident conviction, directly addressed the core of the plaintiffs’ argument: that NASCAR’s control over the sport’s infrastructure and access limits the choices available to drivers and teams.

The financial underpinnings of team operations were also a significant focus. Buterman questioned Hamlin about the percentage of overall team revenue that drivers receive in their contracts, contrasting it with the revenue share NASCAR distributes to teams. Hamlin defended these figures by highlighting the substantial operational costs incurred by teams, a point Buterman challenged by referencing NASCAR’s own expenses. Nevertheless, Hamlin reiterated his central accusation, stating, "We are not a monopoly like you," and emphasizing that drivers should have the freedom to choose where they offer their services.

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A text message exchange between Hamlin and Steve Jordan, another executive at 23XI Racing, regarding the signing of driver Corey Heim to a long-term contract, was introduced by Buterman. He questioned how Jordan’s directive to "lock him up" differed from NASCAR’s alleged practice of "locking tracks up." This line of questioning aimed to portray team owner actions as analogous to the monopolistic behaviors they accuse NASCAR of.

The personal animosity Hamlin harbors towards NASCAR leadership, particularly Jim France, was palpable. Hamlin recounted a particularly discouraging conversation with NASCAR CEO Jim France at the December 2022 awards banquet in Nashville. According to Hamlin, France stated that the primary issue in NASCAR was excessive team spending, suggesting that teams should operate with a budget of $10 million per car, significantly lower than the approximately $20 million being spent at the time. Hamlin expressed the impracticality of such a drastic reduction, telling France, "Cutting is not growth. I can’t cut my costs in half. It’s not realistic." He further elaborated that NASCAR had already implemented measures like shortening race weekends and reducing practice sessions, likening the situation to having "cut this grass so short that we are down to the dirt."

Hamlin also revealed that France had characterized him as the "type of owner that NASCAR wants in the sport," differentiating him from external investors. Despite this perceived endorsement, Hamlin maintained that further cost-cutting was not feasible and highlighted his significant investment in the sport, expressing a desire to avoid becoming another statistic of a defunct racing team owner. When asked for a solution to his concerns, 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, which he contrasted with the teams’ rejection of permanent charters. Hamlin explained that the proposed extension had fixed terms and did not account for potential future increases in broadcast rights revenue, stating that 23XI Racing would not remain viable under such terms. He pointedly asked, "You force us to buy all the cars, the components … we don’t own any of that … how ridiculous is that?"

Buterman also scrutinized Hamlin’s demand for $105 million in damages, which represents a substantial return on his initial $45 million investment as a 40 percent owner of 23XI Racing, a team co-owned with Michael Jordan and Curtis Polk. Hamlin responded by asserting, "We want to be made whole for what you did to us," directing his words not just at Buterman but implicitly at the France family.

The court also heard details about Hamlin’s personal financial standing. It was revealed that Hamlin earns $14 million annually from his current contract with Joe Gibbs Racing. When asked to explain this substantial salary, Hamlin attributed it to his status as "at the top of my game."

A significant point of contention was the Driver Ambassador Program (DAP), which Hamlin admitted "bugs him the most" as a team owner, despite its direct benefit to him as a driver. Introduced this year and integrated into the charter agreement, the DAP compensates drivers for promoting the sport. Hamlin argued that this program diverts the teams’ most valuable assets – their drivers – to promote NASCAR initiatives rather than those of their own teams. He highlighted that teams contribute 40 percent of the DAP funding, yet receive no direct return on investment from drivers promoting NASCAR. When Buterman questioned if Hamlin opposed drivers being paid, Hamlin retorted, "We pay drivers, not NASCAR." Buterman countered by noting that most drivers do not command a $14 million salary, to which Hamlin responded that most drivers do not achieve his level of race wins.

NASCAR’s defense attorney attempted to portray Hamlin as an unreliable or disingenuous witness. Buterman cited Hamlin’s generally positive public comments about the NextGen car, made on platforms like the Kenny Wallace Show and the Netflix series "Full Speed," where he lauded its cost-containment potential and its role in lowering the barrier to entry for new teams. Hamlin had described the car as "a net positive for the sport." However, he is now suing NASCAR, partly based on the argument that the single-source nature of the car contributes to NASCAR’s alleged monopsony power.

Hamlin explained this apparent contradiction 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 had to navigate NASCAR’s dictates on how he should operate. When pressed by Buterman on how the jury could trust his testimony if he sometimes expressed sentiments he did not genuinely hold, Hamlin dismissed the notion as "nonsense." He maintained that his public persona was about projecting positivity and fulfilling his role to keep fans engaged.

Further scrutiny was placed on communications from other 23XI executives, including Gene Mason, Jordan, and Polk. Polk, in particular, was quoted as calling Hamlin a "terrible businessman" who "spends money recklessly." Hamlin countered that while 75 percent of teams incurred losses, 23XI Racing, under his leadership, remained competitive and did not lose money. He stated he was not offended by his partners’ remarks, as it was "their job to keep us in check." He provided an example of the $35 million AirSpeed facility, where Polk initially objected to the cost. Hamlin explained that while Polk had concerns about the charter negotiations, it did not signify a disagreement with the underlying vision for the facility. He and Jordan’s shared desire to win, he explained, inevitably came with a significant financial cost, a sentiment that elicited a nod from Jordan in the courtroom.

Buterman also highlighted a perceived inconsistency in Hamlin’s expressed commitment to NASCAR. He presented a text message from August 2023, in which Hamlin indicated to Jordan a desire to be bought out of his 23XI ownership, contrasting this with his earlier expression to Jim France of a long-term commitment. Hamlin clarified that this sentiment stemmed from frustration over the limited decision-making power he felt he had at the time. He characterized such internal disagreements as normal for any enterprise and stated that they were resolved through discussion, emphasizing that he and his leadership team "figure it out."

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