23XI-FRM seeking $205M in damages, claims NASCAR counsel; Denny Hamlin grilled on witness stand

NASCAR Cup Series YellaWood 500 - Source: Getty
Denny Hamlin and NBA Hall of Famer Michael Jordan on October 06, 2024 in Talladega, Alabama. Image: Getty

The antitrust trial between 23XI Racing and Front Row Motorsports and NASCAR moved into dramatic new territory as external counsel for NASCAR, Lawrence Buterman, revealed that the two Cup teams are now seeking $205 million in damages.

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Co-owner Denny Hamlin was also grilled on the witness stand about whether such a high return was fair and whether his testimony could be trusted. The Joe Gibbs Racing driver, who has been racing in the series for over two decades, also confirmed that his salary was $14 million annually.

Adam Stern of the Sports Business Journal reported the latest updates from the second day of trial on Tuesday, December 2, at a North Carolina Courthouse, writing:

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"NASCAR external counsel Lawrence Buterman said 23XI/FRM are asking for $205 million in damages, that this would be a 900% ROI from what 23XI has invested and grilled [Denny Hamlin] about whether that is a fair ROI. Hamlin also confirmed his JGR salary is around $14M annually."
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Hamlin also faced questions about his trustworthiness during cross-examination, but he rejected the accusation, saying:

"Nonsense."
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On Monday, 1 December, Hamlin spoke on the witness stand and described the financial burden teams face under the current system. According to an ESPN report, he testified that running a single Cup Series car for a full season costs roughly US $20 million (before salaries and overhead). According to numbers from one of the expert reports released in the past month, 23XI paid about $28 million for its third NASCAR Cup Series charter in 2024.

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The team, also owned by Michael Jordan, debuted in 2021 and has been fielding two full-time Cup cars since 2022. It expanded to a third entry in 2025.

23XI co-owner Denny Hamlin reveals expense of running NASCAR Cup team

The first day of the antitrust lawsuit against NASCAR and its CEO, Jim France, started with Jury selection and an opening statement by Michael Jordan's 23XI Racing team. 23XI-FRM's lawyer said that internal NASCAR documents will show unfair, anti-competitive practices, including texts, calling the deal a "take-it-or-leave-it" offer. NASCAR's team countered by saying the charter system has created value and long-term revenue for teams.

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Denny Hamlin also testified that the team had earlier paid $4.7 million and $13.5 million for its first two charters. The 46-year-old revealed another $40 million, plus the team spent on its race shop and technical alliance. This brings the three-charter total to roughly $46.2 million. Similarly, FRM paid between $20 million and $25 million for its third charter, a deal tied to Stewart-Haas Racing.

The judge later barred Hamlin and co-owner Curtis Polk from staying in court after their testimony to avoid technical issues about how many corporate reps a team may have.

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Edited by Hitesh Nigam
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