Denny Hamlin becomes emotional as he testifies as the first witness in NASCAR antitrust trial

CHARLOTTE, N.C. The federal antitrust trial involving NASCAR began Monday, with three-time Daytona 500 champion Denny Hamlin breaking down in tears shortly after taking the stand as the first witness. The case could significantly reshape the iconic stock car racing series.

Hamlin, co-owner of 23XI Racing alongside basketball legend Michael Jordan, and Front Row Motorsports allege that NASCAR operates as a monopolistic entity, forcing teams to accept terms and funding arrangements they cannot influence. Hamlin became emotional while recounting how he entered racing, noting his fathers declining health as a source of distress.

When I was about 20, I had to decide whether to continue racing or work in my dads trailer business, Hamlin testified. He explained that later, as he considered retirement, he sought a partner to maintain a team, leading to his collaboration with Jordan, whom he knew from his time as a Charlotte Hornets season-ticket holder.

Hamlin highlighted the sacrifices made by his family and the challenges faced by drivers and team owners in the sport. He emphasized that 23XI Racing would not have launched in 2021 without Jordan, and with his involvement, the team has been profitable in four of its five seasons.

Attorney Jeffrey Kessler noted that Front Row Motorsports, led by fast-food entrepreneur Bob Jenkins, has yet to turn a profit since 2004, despite winning the Daytona 500 in 2021. Kessler referenced a NASCAR-commissioned study showing 75% of teams lost money in 2024 and reported nearly $400 million paid to the France Family Trust over three years. A 2023 Goldman Sachs assessment valued NASCAR at $5 billion.

Central to the lawsuit is NASCAR's revenue-sharing and charter system. Hamlin testified that running a single car for a 38-race season costs $20 million, excluding overhead. You do it because you love stock car racing, and theres nowhere else to go, Kessler said, emphasizing the financial strain teams face.

Hamlin discussed charter purchases, which guarantee race entry and a share of winnings. 23XIs first three charters came from teams that had ceased operations, purchased at $4.7 million, $13.5 million, and $28 million respectively. He acknowledged the risk due to pending litigation but stressed it was essential to build a top-tier team.

NASCAR attorneys defended the charter system, claiming it created $1.5 billion in equity for 36 chartered teams. Previously, teams raced without guaranteed entry or payouts. Johnny Stephenson, representing NASCAR, praised the France family for building the organization over 75 years, calling their effort worthy of admiration, not litigation.

The trial has faced over a year of preliminary hearings despite calls for settlement. A win for NASCAR could force 23XI and Front Row out of business, with their charters sold, while a victory for the teams could result in monetary damages and potential changes to NASCARs structure, including the charter system.

Michael Jordans presence in the courtroom influenced jury selection, as some potential jurors cited their admiration for him. NASCAR executives, including chairman Jim France and vice chair Lesa France Kennedy, left the courtroom after opening arguments as potential witnesses.

Hamlins testimony will continue Tuesday morning.

Author: Sophia Brooks