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Denny Hamlin’s Bold Stand in 23XI vs NASCAR Lawsuit Promises Game-Changing Outcome

Harry Bright by Harry Bright
June 11, 2025
in NASCAR
Reading Time: 3 mins read
0
Denny Hamlin’s Bold Stand in 23XI vs NASCAR Lawsuit Promises Game-Changing Outcome

Nov 10, 2024; Avondale, Arizona, USA; Monster Energy drink executive Mitch Covington (left) with NASCAR Cup Series driver Denny Hamlin (center) and 23XI Racing president Steve Lauletta during the NASCAR Cup Series Championship race at Phoenix Raceway. Mandatory Credit: Mark J. Rebilas-Imagn Images

Hamlin Says Legal Battle “Will Benefit Everyone” as Teams Brace for Open Status

The world of NASCAR is reeling from a legal confrontation unlike anything in its modern history. 23XI Racing, co-owned by Denny Hamlin and Michael Jordan, and Front Row Motorsports (FRM) have launched an aggressive antitrust lawsuit against the very league they compete in—challenging the foundational charter system that governs race entry and financial distribution.

And while the courtroom battle has already triggered major changes in how both teams are treated, Hamlin insists the fight is far from over—and that it may end up improving the sport for all involved.

What the Lawsuit Is About

Filed in October 2024, the suit accuses NASCAR of violating antitrust law by:

  • Restricting teams from profiting from or selling their charters independently

  • Limiting team negotiation power through a closed, non-competitive system

  • Structuring a charter model that, according to the plaintiffs, reduces economic flexibility and stifles competition

The move sent shockwaves through the racing world, especially as it came from two active and high-profile teams.

The Latest Development: A Legal Setback

On June 5, 2025, the Fourth Circuit Court of Appeals overturned a prior injunction that had temporarily allowed both teams to continue operating as chartered entries while the lawsuit proceeded. This new ruling now clears the way for NASCAR to revoke their charters—stripping 23XI and FRM of their guaranteed race spots and revenue share.

Unless a rehearing is requested by June 19, the charter removals will be official by June 26.

What It Means: Life as Open Teams

Should the teams lose their charters permanently:

  • They will no longer be guaranteed entry into Cup Series races

  • They’ll need to qualify based on speed, just like non-chartered teams

  • Their financial take from races will be slashed significantly—by up to two-thirds in some cases

Despite this, both teams have committed to continue racing in 2025 under open status if needed.

Denny Hamlin Speaks Out

Hamlin has remained vocal throughout the process, reaffirming his belief that the court battle, while tense, will lead to long-term improvement in the structure of NASCAR.

“This isn’t the final outcome. This is just one step in a much bigger process,” Hamlin said following the court’s ruling. “We’re going to keep showing up. And I believe, in the end, this will benefit every team in the garage—not just ours.”

Hamlin has confirmed that both he and Jordan are willing to absorb the additional costs and pressure of open competition in order to push for meaningful change.

Looking Ahead: The December Showdown

The most crucial chapter is still to come. A full federal trial is scheduled to begin on December 1, 2025, where 23XI and FRM will make their case that NASCAR’s charter system violates federal antitrust law.

Meanwhile, NASCAR has filed a counterclaim, accusing the teams of colluding to manipulate negotiations—a charge the teams deny.

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