Denny Hamlin Sets Record Straight After NASCAR Lawsuit ‘Agreement’ Reports Emerge

NASCAR driver and co-owner of 23XI Racing Denny Hamlin has taken to social media to clarify misconceptions surrounding a legal agreement involving his team and NASCAR. This comes after reports have emerged that 23XI Racing and Front Row Motorsports had come to an agreement with NASCAR to compete as open teams for 2025.

Hamlin posted to social media:

“For clarification sake.

“No agreement was reached. They just removed the provision.”

This lawsuit has brought to light substantial grievances concerning NASCAR’s control over the sport’s operational and financial architecture. Initiated by 23XI Racing, a team co-owned by NBA icon Michael Jordan, Hamlin, and businessman Curtis Polk, along with Front Row Motorsports owned by Bob Jenkins, the lawsuit accuses NASCAR of monopolistic practices.

The heart of the dispute lies in NASCAR’s revenue-sharing model and the lucrative team charter system. Charters grant teams guaranteed prize money, secure race entries, and other benefits, essentially stabilizing operations. Yet, recent reports had suggested that the teams would be competing as open teams in 2025 whilst the lawsuit is still ongoing. Unlike chartered teams, open teams must undergo weekly qualifications and are excluded from financial assurances, escalating operational challenges, and risks.

Jeffrey Kessler, the attorney representing the two racing teams, detailed a significant albeit partial relief following these legal setbacks. According to Kessler:

“[NASCAR] has removed the anticompetitive release requirement in its open agreement.

“My clients will continue their appeal to the 4th Circuit to issue an injunction so they can run as chartered teams therefore avoiding irreparable harm.

“Both race teams are pleased that they will continue to be a participant in this sport that they love while fighting to make it fair and just for all.”

The latest court filing has claimed that 23XI Racing and FRM face “irreparable harm” if they compete in 2025 without charters. The filing reads:

“The 2025 NASCAR Cup Series season commences with the first race on February 2, 2025. Without the injunction, [23XI/FRM] will be forced to make a Hobson’s choice: either risk releasing their antitrust rights in this action or be out of business from competing as premier stock car racing teams.

“The district court denied [23XI/FRM]’s motion, and now [the teams] face immediate irreparable harm if they do not receive this court’s expedited review of the district court’s decision,” the filing reads.

“That irreparable harm has already begun because [23XI/FRM] cannot assure sponsors, drivers, and fans that they will be able to compete as chartered teams in 2025 – a condition that puts those critical relationships with sponsors, drivers, and fans at immediate risk.”