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The courtroom on Tuesday became a battleground as Denny Hamlin, driver and co-owner of 23XI Racing, concluded his testimony in the antitrust lawsuit filed by his team and Front Row Motorsports against NASCAR. Under intense cross-examination by NASCAR’s lead antitrust attorney, Lawrence Buterman, Hamlin’s deep-seated frustrations with the sanctioning body’s business practices were laid bare, revealing a stark contrast in perspectives on the sport’s economic landscape. The exchange, while maintaining courtroom decorum, was charged with emotion, as Hamlin repeatedly challenged NASCAR’s assertions of fair play and competitive balance.
At the heart of Hamlin’s argument was his persistent claim that NASCAR operates as a monopoly, a characterization he directly contrasted with his own teams. "We are not a monopoly like you are," Hamlin stated forcefully, his pointed use of "you" clearly directed at NASCAR and its leadership, including the France family. This sentiment was echoed throughout his testimony, as he emphasized the importance of options for drivers and teams, suggesting that NASCAR’s structure limits such choices.
Buterman attempted to draw parallels between NASCAR’s alleged anti-competitive practices and contractual agreements within teams. He presented the contract signed by Riley Herbst with 23XI Racing last year, which restricts drivers from competing in other series without permission, as analogous to NASCAR’s exclusivity provisions. Hamlin, however, rejected this comparison, asserting, "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 distinction underscores Hamlin’s view that team-level agreements are a matter of private business, whereas NASCAR’s overarching control impacts the entire sport.
The financial aspects of driver contracts also became a focal point. Buterman pressed Hamlin on the percentage of overall team revenue that drivers receive, suggesting it is less than what NASCAR allocates to teams from its own revenue streams. Hamlin countered by highlighting the significant operational costs incurred by teams, a point Buterman contested by referencing NASCAR’s own expenses. Despite these exchanges, Hamlin reiterated his core assertion: "We are not a monopoly like you," and crucially, "drivers have options of where to take their services."
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Further illustrating the friction, Buterman introduced text messages between Hamlin and 23XI co-owner Michael Jordan discussing a long-term contract for driver Corey Heim. Jordan’s instruction to "lock him up" was presented by Buterman as comparable to NASCAR "locking tracks up," implying a similar restrictive intent. This line of questioning aimed to expose perceived hypocrisy in Hamlin’s arguments.
The personal animosity between Hamlin and NASCAR leadership, particularly NASCAR CEO Jim France, surfaced when Hamlin recounted a conversation from the December 2022 NASCAR Awards Banquet in Nashville. Hamlin described himself as "very, very discouraged" by France’s perspective on the sport’s finances. According to Hamlin, France stated, "The problem in NASCAR is that teams spend too much money," suggesting a target spending of $10 million per car, a stark contrast to the approximately $20 million being spent at the time. Hamlin deemed this suggestion "not realistic," arguing that "cutting is not growth" and that the sport had already reduced its operational footprint significantly, likening it to "cut[ting] this grass so short that we are down to the dirt."
Hamlin recounted that France had characterized him as "the type of owner that NASCAR wants in the sport," distinguishing him from outside investors. However, Hamlin expressed his inability to further cut costs and emphasized his investment in NASCAR. The driver-owner’s fear of becoming another statistic of a defunct racing team owner was palpable. When asked about France’s response to his financial concerns, Hamlin stated, "He had no answer."
During his cross-examination, Buterman presented NASCAR’s offer of a seven-year agreement with a seven-year extension option as a positive concession, in contrast to the teams’ desire for permanent charters. Hamlin revealed that 23XI would cease to exist if they had accepted these terms. He explained that while the initial seven years had fixed terms, the subsequent seven-year option offered no guaranteed increase in revenue, even if NASCAR secured a significantly larger broadcast rights deal after 2031. The teams would receive "no less than what they make now," a prospect Hamlin sarcastically acknowledged with a dry "Well, thank you, I appreciate that." He further elaborated on the burden placed on teams, stating, "You force us to buy all the cars, the components… we don’t own any of that… how ridiculous is that."
Buterman then shifted focus to 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%. Hamlin’s response was resolute: "We want to be made whole for what you did to us," again directing his sentiment beyond Buterman.
Information revealed in court indicated 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."
The Driver Ambassador Program (DAP) also drew Hamlin’s ire. He described it as something that "bugs him the most" as a team owner, despite its potential personal benefit as a driver. Established this year and codified in the charter agreement, the DAP compensates drivers for promoting the sport. Hamlin argued that it diverts the teams’ most valuable assets – their drivers – to promote NASCAR initiatives rather than their own team’s endeavors. With teams contributing 40% of the DAP funding, Hamlin contends that NASCAR leverages drivers to sell tickets without a return on investment for the teams. When Buterman inquired if Hamlin disliked drivers being compensated, 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.
NASCAR’s legal team aimed to portray Hamlin as an inconsistent or disingenuous witness. Buterman highlighted Hamlin’s generally positive commentary on the Next Gen car’s cost-containment potential, made on the Kenny Wallace Show, and his description of it as a "net positive for the sport" on the Netflix series "Full Speed," which lowered the barrier to entry for new teams. These statements appear to contradict his lawsuit’s claims that the car’s single-source nature is a tool for NASCAR to maintain a monopsony.
Hamlin defended these seemingly contradictory statements by explaining the pressure to conform to NASCAR’s narrative. "Because if I say anything bad, I get a lashing from NASCAR. So, publicly, it’s all sunshine and rainbows," he stated. "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 described NASCAR’s control over his public statements as dictatorial: "you can dictate how I do." When Buterman questioned the jury’s ability to trust his testimony, Hamlin dismissed the assertion as "nonsense," clarifying, "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."
Buterman also introduced prior communications from 23XI executives, including Michael Jordan and Curtis Polk, where Hamlin was described as a "terrible businessman" who "spends money recklessly." Hamlin countered that while 75% of teams lost money, 23XI had not, despite competing for wins and championships. He stated he was not offended by his partners’ remarks, as "it’s their job to keep us in check." As an example, he cited the $35 million AirSpeed facility, which Polk had initially objected to. Hamlin explained that while Polk questioned the investment, particularly given the ongoing charter negotiations, it did not signify a disagreement with the overall vision. He asserted that his and Jordan’s shared desire to win inherently involves expenditure.
The court also examined a text message from August 2023, where Hamlin expressed a desire to be bought out of his 23XI ownership, seemingly contradicting his earlier expressed commitment to NASCAR’s long-term future. Hamlin characterized this as a moment of frustration over his limited decision-making power at the time. He explained that he and his leadership team discussed the issue, and such disagreements are common in any business, with resolutions typically found through collaborative effort. He likened these internal disputes to needing to "kick and scream" to get his points across.
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