Denny Hamlin’s testimony resumed on Day 2 of the antitrust trial between 23XI Racing-Entrance Row Motorsports and NASCAR. It introduced one other spherical of sharp exchanges over the game’s enterprise mannequin, the groups’ monetary stress, and his public feedback concerning the Subsequent Gen period.
Hamlin’s look got here after a heated opening day that included disputes over who might stay within the courtroom and competing narratives about NASCAR’s management over charters. On Tuesday, the main focus shifted totally to Hamlin. He returned to the stand for over three hours, increasing on the monetary pressure he faces.
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Throughout cross-examination, NASCAR attorneys identified that Hamlin had publicly supported the game’s course in a number of interviews and podcasts. The Joe Gibbs Racing driver defined that talking actually in public typically introduced penalties. The difficulty centered on his look on the Kenny Dialog podcast in July 2024, the place Hamlin had referred to as the Subsequent Gen “a net-positive.”
Joseph Srigley of Racing America quoted Hamlin’s reply from the stand on X :
“As a result of if I say something dangerous, I get a lashing from NASCAR. So, publicly, it’s all sunshine and rainbows.”
Denny Hamlin stated that he was anticipated to repeat the game’s messaging, not his personal reservations. He described it as a promotional obligation anticipated of prime drivers. He acknowledged that the identical utilized to when he praised the Mexico Metropolis race earlier this yr. The veteran driver informed the courtroom these had been NASCAR’s speaking factors, not an indication that every one points had been resolved.
The questioning then shifted to the lawsuit’s monetary stakes. 23XI Racing and FRM are searching for $205 million in damages, and NASCAR pressed Hamlin on why the groups declare such losses when inside emails present {that a} 10 % return on funding could be thought-about robust. Hamlin dismissed these characterizations, calling them “nonsense” and pointing to the volatility groups face if even one sponsor pulls out. He famous that 23XI brings in about $40 million in sponsorship however operates on skinny margins as a result of prices proceed to rise.
Denny Hamlin additionally revealed private investments of round $45 million into 23XI Racing, by way of loans and private ensures. NASCAR argued the true determine is nearer to $10 million and stated that the mixed proprietor funding is $26,985,000. The sanctioning physique additionally harassed that 23XI has seen vital beneficial properties, with an estimated $160.2 million valuation on the finish of 2024.
Denny Hamlin reveals actual price of working 23XI throughout NASCAR’s cross-examination on Day 2 of trial: “By no means did this to get wealthy”
In response to 23XI Racing and Entrance Row Motorsports, the aim of proudly owning charters is stability, not main earnings. Denny Hamlin stated that the staff’s objective has all the time been easy: put money into the game, preserve the operation viable, and revel in competing on the highest degree.
Hamlin outlined the staff’s monetary monitor report – $2.5 million in revenue in 2022, $3.5 million in 2023, and what he anticipated could be greater than $5 million yearly in 2025. The staff misplaced cash in 2024, however Hamlin famous that $1 million of that loss was related-party lease paid for 23XI headquarters, Airspeed, co-owned by him and Michael Jordan. Courtroom filings additionally included emails between Hamlin, Curtis Polk, and staff president Steve Lauletta, the place he stated:
“By no means did this to get wealthy… proudly owning a staff won’t ever be a serious revenue,” (by way of Joseph Srigley)
Denny Hamlin used that alternate to elucidate the monetary image. He stated that the staff’s numbers look wholesome on paper, however depend on sponsorship stability, most of which comes attributable to Jordan. The enterprise is fragile, and the revenue margins are skinny due to excessive prices. The staff constructed the Airspeed store for $35 million – a determine that ballooned from $9–10 million earlier than COVID, and paid $28 million for a 3rd constitution from Stewart-Haas Racing.
Hamlin’s testimony had concluded earlier than lunch, and NASCAR confirmed it could not name him again. That permits him to stay within the courtroom for the remainder of the proceedings. With Hamlin dismissed, the trial now strikes to NASCAR govt Scott Prime on the stand as Day 2 continues.
Edited by Hitesh Nigam
