Denny Hamlin is reassuring his team that 23XI Racing employees will remain unaffected by the ongoing legal battle with NASCAR. As one of the chief figures behind the team, Hamlin has set the record straight regarding the consequences of the antitrust lawsuit filed by 23XI Racing and Front Row Motorsports concerning the 2025-2031 charter agreements.
The lawsuit, which stemmed from contentious negotiations with NASCAR, includes the filing of an injunction to continue operations during the proceedings.
23XI Racing and Front Row Motorsports, have refused to sign the proposed charter agreements, resulting in the filing of an antitrust lawsuit. The lawsuit alleges unfair practices and seeks to prevent NASCAR from revoking team charters which are crucial for maintaining the team’s status and revenue streams.
Hamlin insisted that whatever financial impacts arise from the lawsuit will be absorbed by the team’s owners. He explained during his ‘Actions Detrimental‘ podcast:
Denny Hamlin, driver of the #11 FedEx One Rate Toyota, looks on during qualifying for the NASCAR Cup Series YellaWood 500 at Talladega Superspeedway on October 05, 2024 in Talladega, Alabama. Denny Hamlin comments on 23XI Racing employee impact of antitrust lawsuit.
Sean Gardner/Getty Images
“As 23XI, we’re prepared for any outcome. I think Michael [Jordan] has stated and I’ve stated to the team we will not let this affect our employees whatsoever in any kind of way, and any financial distress is going to have to fall directly on the owners. It will not fall on our people whatsoever. We will not allow that to happen.”
The wider context of the lawsuit includes allegations that NASCAR, alongside the France family, has engaged in anti-competitive activities that limit competition within the sport. These claims suggest that NASCAR’s hold over tracks, suppliers, and the development of the Next Gen car fosters a monopolistic environment, disadvantaging independent teams.
Should 23XI Racing and Front Row Motorsports lose their chartered status, they could face a combined revenue loss of approximately $45 million.
The injunction filed by 23XI Racing and Front Row Motorsports is in an attempt to continue racing under chartered status amidst the legal battle. This move is crucial, as losing charters could irreversibly harm team operations, even if a favorable legal outcome is achieved. Hamlin added:
“We’re trying to stop NASCAR from taking our charters. Obviously, there would be massive irreparable harm there. We’re going to go to the courts and say listen, let us operate as a chartered team while this lawsuit goes on over the next year to two years.
“If you lose your charters and you win the lawsuit, then what? You can’t go back. It’s going to be tough to operate that way.”
Despite the ongoing dispute, 23XI Racing is moving forward with expansion plans, including the addition of a third car to compete next year. The team’s legal representation, led by antitrust attorney Jeffrey Kessler, suggests that NASCAR could face changes—voluntary or otherwise. Kessler noted that, much like other sports entities that have evolved, NASCAR may need to adapt to new competitive norms.
