23XI Racing co-founder Denny Hamlin has strongly criticized NASCAR and its CEO, Jim France, for what he described as the "unfair" use of power. Hamlin's team, along with Front Row Motorsports, have taken legal action, filing an antitrust lawsuit against NASCAR in federal court in North Carolina.
In 2021, Hamlin, who is also a Cup Series driver for Joe Gibbs Racing since 2005, partnered with NBA icon Michael Jordan and businessman Curtis Polk to launch 23XI Racing, marking his deeper involvement in NASCAR. While the team has enjoyed success on the track, the past two years have been marred by off-track disputes, primarily revolving around ongoing disagreements with NASCAR over a new charter agreement.
The lawsuit arose after 23XI Racing and Front Row Motorsports declined to sign NASCAR's final charter proposal at Atlanta Motor Speedway last month. Teams had been in negotiations for two years, with the main point of contention being NASCAR’s refusal to make charters permanent.
NASCAR and Speedway Motorsports hold exclusive control over the tracks used in the series, effectively blocking the creation of any rival competitions. Additionally, NASCAR owns the Next Gen car, mandating that teams purchase parts only from NASCAR-approved suppliers at fixed prices, while also limiting the car's use to NASCAR-sanctioned events.
Stating that NASCAR used its powers unfairly, pushing him to explore legal options, Hamlin told Racer:
"I didn't realize until re-investing the money that I've made as a driver back into the sport to put on a show for Jim France and NASCAR, how unfair this whole system is.
"I didn't realize they would exercise the power that they did in an unfair manner, in my opinion, and we just got to a tipping point where we all said, enough is enough and let's exercise some options."
Considering the case, antitrust and sports attorney Jeffrey Kessler clearly stated that the sport has to change willingly, or else it could be forced to transform. He explained:
"This is reminiscent for me of many sports that have gone through a transformative model.
"(It's) sort of a moment when the legal style basically confronts them and says, either you're going to voluntarily change or you're going to be changed and you can either get on the bus or get run over by the bus. No one wanted this litigation but NASCAR didn't really give these teams any choice — you either submit to the bully or you fight. They're going to fight.
"We think at the end of the day, NASCAR's going to have to change because that's what the legal system is going to require."
He added:
"If NASCAR is willing to change, it's got to be a significant change to make a fair system for the teams.
"If they're not willing to do that kind of a deal, then they'll take this case all the way to a jury and a judge, and that's why I say they'll be forced to change. It's the same type of thing I went through with the NCAA, who had a choice to make. They could keep fighting in court and keep losing and have the new system thrust upon them or in that case, they finally sat down and said, we're ready to transform the sport and we'll be a part of it.
"That's the type of choice that NASCAR is going to face."
Polk stated that the team aimed to secure a fair deal with NASCAR without being forced into an unfavorable agreement. However, when negotiations stalled, they turned to Kessler for guidance, ultimately deciding to pursue legal action. He added:
"We knew we had no leverage in this whole process.
"We'd meet with (NASCAR) about the things we thought would be better for the sport, not just for the teams but for the drivers, the fans, and for NASCAR and the France family to try and grow the sport. ... We built this team for the sole purpose of running at the NASCAR Cup level. There's nothing else I can do with these assets. I'm in a situation where I basically invested tens and tens of millions of dollars in a system where one person, basically, has the right to tell me I'm not going to get anything more and I can take it or leave it on September 6, and I knew that didn't sound right and that's why I went to Jeffrey and that's why we're where we are today."
