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CHARLOTTE, N.C. – The courtroom became a battleground Tuesday as NASCAR Cup Series driver and team owner Denny Hamlin engaged in a vigorous cross-examination, his testimony in the ongoing antitrust lawsuit filed by 23XI Racing and Front Row Motorsports against NASCAR laying bare a palpable animosity towards the sanctioning body. The exchange, characterized by its emotional intensity while maintaining courtly decorum, underscored the deep divisions and differing philosophies between team owners and NASCAR’s leadership.
NASCAR’s antitrust defense attorney, Lawrence Buterman, meticulously probed Hamlin’s arguments, seeking to highlight inconsistencies and challenge the narrative of NASCAR’s alleged monopolistic practices. Hamlin, a three-time Daytona 500 winner and co-owner of 23XI Racing alongside Michael Jordan, repeatedly asserted that NASCAR operates as a monopoly, a stark contrast to the "options" he contends drivers and teams should possess.
"We are not a monopoly like you are," Hamlin declared, his emphasis on "you" seemingly directed not just at Buterman but at the France family, who control NASCAR. This sentiment permeated his testimony, illustrating a perceived power imbalance that Hamlin believes stifles competition and innovation within the sport.
A key point of contention arose when Buterman attempted to draw parallels between a contract signed by driver Riley Herbst with 23XI Racing, which restricts him from competing in other series without permission, and NASCAR’s alleged exclusivity provisions. Hamlin countered, reiterating his central argument: "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, for Hamlin, lies in the ability of individuals and independent entities to freely contract, as opposed to a single governing body dictating terms.
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The discussion then shifted to the financial structure of team revenue and driver compensation. Buterman questioned the percentage of overall team revenue that drivers receive in their contracts, suggesting it was a smaller portion than what NASCAR itself allocates to teams from its revenue streams. Hamlin defended this disparity by pointing to the substantial operational costs incurred by teams, a point Buterman challenged by referencing NASCAR’s own expenditures. However, Hamlin remained steadfast, reiterating his characterization of NASCAR as a monopoly and emphasizing the agency drivers possess in choosing their racing affiliations.
Further illustrating the strained relationship, Buterman presented text messages between Hamlin and 23XI Racing executive Steve Jordan discussing the long-term contract of driver Corey Heim. Jordan’s directive to "lock him up" was framed by Buterman as analogous to NASCAR’s alleged practice of "locking tracks up." This comparison aimed to equate team-level strategic decisions with NASCAR’s broader control over its racing infrastructure.
Hamlin’s personal frustrations were vividly articulated when recalling a conversation with NASCAR CEO Jim France at the December 2022 awards banquet in Nashville. Hamlin described himself as "very, very discouraged" by France’s perspective on the sport’s financial realities. According to Hamlin, France stated, "the problem in NASCAR is that teams spend too much money," suggesting that team budgets should be halved from approximately $20 million per car to $10 million.
Hamlin vehemently disagreed with this assessment, explaining to France that such drastic cost-cutting was not conducive to growth. "Cutting is not growth. I can’t cut my costs in half. It’s not realistic," Hamlin recounted, noting that NASCAR had already reduced 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 reportedly acknowledging Hamlin as the "type of owner that NASCAR wants in the sport," contrasting him with private equity investors, Hamlin felt his concerns about financial viability were dismissed. He expressed that he had "invested" in NASCAR and did not wish to become another statistic of a team owner forced out of business. France, according to Hamlin, "had no answer."
During his cross-examination, Buterman highlighted NASCAR’s offer of a seven-year agreement with an additional seven-year extension option, which Hamlin’s team rejected in favor of permanent charters. Buterman pointed out that the option years featured fixed terms, unlike the current seven-year deal, and that these subsequent years could not be renegotiated. Hamlin contended that 23XI Racing would not be in business if they had accepted these terms, arguing that NASCAR could potentially secure a more lucrative broadcast rights deal after 2031, while the option would cap team revenue at their current levels. "Well, thank you, I appreciate that," Hamlin responded with evident sarcasm. He further criticized the arrangement, stating, "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 significant return on his initial $45 million investment as a 40 percent owner of 23XI Racing. Hamlin maintained that the aim was to be "made whole for what you did to us," again directing his commentary towards NASCAR’s leadership.
The court also heard details about Hamlin’s personal financial standing, including his reported $14 million annual salary from his contract with Joe Gibbs Racing. When questioned about his high earnings compared to other drivers, Hamlin stated, "I am at the top of my game."
A point of particular contention for Hamlin as a team owner was the Driver Ambassador Program (DAP). Although he personally benefits from it as a driver, Hamlin expressed that it "bugs him the most." Introduced this year and codified in the charter agreement, the DAP compensates drivers for promoting the sport. Hamlin’s objection stems from the belief that it diverts the teams’ most valuable assets – their drivers – to promote NASCAR initiatives rather than those of their respective teams. He highlighted that teams contribute 40 percent of the DAP funding. Hamlin argued that NASCAR leverages drivers to sell tickets and generate revenue without providing teams a return on investment. 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 sought to portray Hamlin as an unreliable narrator, pointing to his seemingly contradictory public statements. Buterman cited Hamlin’s generally positive commentary on the Next Gen car’s cost-containment potential and its role in lowering the barrier to entry for new teams, as expressed on the Kenny Wallace Show and the Netflix series "Full Speed." Hamlin had even called the car "a net positive for the sport." However, he is now suing NASCAR, partly on the grounds that the car’s single-source nature is an alleged tool to maintain 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 elaborated that NASCAR could "dictate how I do." Buterman pressed, asking how the jury could trust his testimony if he sometimes expressed sentiments he didn’t genuinely feel. Hamlin dismissed this as "nonsense," asserting, "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 challenging Hamlin’s credibility, Buterman introduced communications from 23XI executives, including Jordan and Curtis Polk, with Polk reportedly describing Hamlin as a "terrible businessman" who "spends money recklessly." Hamlin countered by noting that while 75 percent of teams incurred financial losses, 23XI Racing did not, all while contending for wins and championships. He stated he was not offended by his partners’ remarks, as "it’s their job to keep us in check." He provided the example of the $35 million AirSpeed facility, which Polk initially objected to, explaining that the objection stemmed from concerns about charter negotiations, not a disagreement with the overall vision. Hamlin, alongside Jordan, is driven by a desire to win, a pursuit that inherently involves significant investment, a point acknowledged with a nod from Jordan.
Buterman also highlighted a perceived inconsistency in Hamlin’s long-term commitment to NASCAR. He contrasted Hamlin’s previous expression to Jim France about wanting to be in the sport long-term with a text message to Jordan in August 2023, where he expressed a desire to be bought out of his 23XI ownership. Hamlin explained this as a moment of frustration over his perceived limited decision-making power at the time, clarifying that he and his leadership team discussed the matter and reached a resolution. He characterized such disagreements within leadership as normal for any enterprise, emphasizing that they always "figure it out."
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