In a season already rife with disputes between NASCAR teams and series owners over the new charter deal, 23XI Racing co-owner Denny Hamlin has added fuel to the fire by pointing out the stark financial reality many teams face. With 23XI Racing and Front Row Motorsports now suing NASCAR over sustainability concerns, Hamlin took to his podcast Actions Detrimental to break down the sponsorship crisis that he says only a few top-tier teams are capable of enduring long-term.
“The only people that have the staying power in our sport forever are Penske, Hendrick, and you can definitely throw Joe Gibbs Racing in there as well,” Hamlin said, explaining that these teams’ longstanding relationships and business-to-business (B2B) connections enable them to maintain solid sponsorships and win consistently. “No one else really has that ability,” he added, underscoring that the remaining teams are left to struggle for sponsorship dollars and stability, making them “fragile” in a cutthroat environment.
Hamlin noted that smaller teams, unable to cultivate similar business partnerships or financial security, find it hard to thrive. This reality, he explained, is creating a widening gap between powerhouse teams and those scraping by. “It’s a snowball that happens in this business that makes it extremely difficult,” Hamlin said, emphasizing that these sponsorship struggles force teams to underperform, which then makes them even less appealing to investors—a vicious cycle that threatens their survival.
Hamlin also pointed to Stewart-Haas Racing (SHR) as a cautionary tale of what happens when performance falters. SHR lost their manufacturer deal with Ford, which Hamlin says set off a chain reaction that left the team vulnerable. “If you don’t have a manufacturer deal, which they ended up losing based on performance, and then you start to lose sponsors, it’s going downhill,” he noted. The downward spiral eventually led to the team’s downfall, highlighting what Hamlin called a troubling trend for mid-tier teams.
With NASCAR facing ongoing financial sustainability challenges, Hamlin’s comments raise important questions about the future of the sport if these sponsorship issues remain unresolved. Without structural support, many worry that NASCAR will increasingly become a playground for only the most financially fortified teams, potentially eroding the competitive spirit that has long defined the sport.
As the battle over charter deals and sponsorship structures continues, the pressure is mounting for NASCAR to address these critical issues before the sport’s integrity and future are at risk.
