NASCAR Trial: Michael Jordan Fans Dismissed, Denny Hamlin Takes Stand

Denny Hamlin, a three-time Daytona 500 winner, has taken the stand in an antitrust lawsuit against NASCAR. This legal battle, which includes NBA legend Michael Jordan as a co-owner of the 23XI Racing team, commenced in Charlotte, North Carolina. Hamlin described the challenges of NASCAR’s business model, claiming team owners like himself often serve merely as “professional fundraisers.” He revealed that 23XI Racing needed $45 million in sponsorship revenue just to achieve a minor profit.

NASCAR Lawsuit Overview

The lawsuit, which began with jury selection featuring six men and three women, puts NASCAR’s operating practices under scrutiny. 23XI Racing, along with Front Row Motorsports, has accused NASCAR of leveraging its monopoly power to manipulate the premier stock car racing market. Judge Kenneth D. Bell hinted at potential severe remedies, including the sale of NASCAR’s racetracks if the jury rules in favor of the race teams.

Hamlin’s Testimony

During his testimony, Hamlin highlighted the financial burdens faced by team owners. He stated, “The difficult part is coming up with tens and tens of millions just to break even.” He explained that partnerships, such as his with Jordan, were crucial for securing sponsorship and profitability. Hamlin became emotional when discussing his journey in racing, citing the financial constraints faced by his family during his early career.

Opening Statements

Attorneys from both sides presented contrasting arguments. Jeffrey Kessler, representing the teams, claimed that NASCAR’s actions confine race teams to unfair conditions. He illustrated this by noting that Front Row Motorsports owner Bob Jenkins had not turned a profit in 20 years. Kessler asserted that the France family, which controls NASCAR, abused its power, benefiting financially at the teams’ expense.

• Kessler stated the France family received nearly $400 million over three years.
• He compared team owners’ struggles to nurses working for a singular, underpaying hospital.

In defense, NASCAR’s attorney John E. Stephenson argued that the lawsuit was born from failed negotiations rather than legitimate antitrust claims. He asserted that NASCAR’s growth and success should be viewed positively, illustrating that teams collectively generate around $640 million in sponsorship annually.

Juror Dynamics

Jury selection encountered minor challenges, particularly concerning potential biases due to Jordan’s fame. Several prospective jurors expressed their admiration for Jordan, which led to their dismissal.

Background of the Case

The legal confrontation began in October 2024 when 23XI Racing and Front Row Motorsports filed the antitrust suit against NASCAR and its CEO, Jim France. The case addresses NASCAR’s operational framework, which many argue has caused financial instability for teams. The dispute centers on NASCAR’s refusal to grant permanent charters, which teams claim is essential for their long-term viability. Charters have markedly increased in value since their introduction, with recent sales reaching $45 million.

The outcome of this lawsuit could have significant implications for NASCAR’s 77-year history and the future of stock car racing in the United States. As the trial progresses, both sides are poised to present more evidence, which may reshape how the sport operates and how teams are compensated.