It’s NASCourt Day!

The NASCAR lawsuit trial has officially begun, pulling the entire industry into a courtroom showdown that’s been building for months. What started as a simple dispute over the NASCAR charter system evolved into a high-stakes drama over the months. Leaked emails, tense negotiations, scathing accusations – you name it, and the NASCAR lawsuit has delivered it.

And now on Day 1 of the trial, all eyes turned to the witness stand as NASCAR called its first voice. It was none other than Denny Hamlin – driver, team owner, and one of the most outspoken figures in the case. However, what happened next was far from standard testimony. It set the tone for a trial that promises emotion, confrontation, and a deeper look into the human cost behind the business of racing.

An emotional start to the NASCAR lawsuit trial

Denny Hamlin was barely into his testimony when the entire courtroom felt the emotional weight he carried as a driver, team owner, and the face of the NASCAR lawsuit. As he began, a simple question about his NASCAR journey and the man behind it (his father) made Hamlin emotional, and he finally broke down. It was an unexpectedly raw start to what would become one of the most revealing stretches of the trial’s opening day.

As you might know, Denny Hamlin’s parents have made significant sacrifices to support his motorsports career, including taking out multiple mortgages and using all their credit cards when Denny was starting. His father, Dennis, has been battling a serious illness for a while now. Hamlin recently expressed his desire for his father to see him win the championship. Despite the heartbreak of his 2025 championship loss, Dennis Hamlin’s unwavering support and sacrifices remain a powerful motivator for him to continue pursuing the title in 2026.

Once composed after a few minutes, Hamlin took the court through the origin story of 23XI Racing. He detailed how the idea formed, how Michael Jordan came on board, and what it took to turn that vision into a fully operational Cup Series team. But sentiment quickly gave way to hard numbers. Numbers, he argued, prove how unsustainable the current charter system is for modern teams.

Hamlin shared that 23XI paid:

• $4.7 million for its first charter,
• $13.5 million for its second, and
• $28 million for its third

Hamlin personally holds a 40% stake in each purchase.

In total, the team is “in for over $45 million” on charters alone. Add in $35 million for the Air Speed shop, the $8 million alliance fee to Joe Gibbs Racing (about $2.66 million per car), and the staggering revelation that it costs $20 million just to put one car on track for 38 races, excluding driver salary or overhead.

The NASCAR lawsuit stems from the lack of good faith between the teams (23XI and FRM) and the governing body. The teams allege that NASCAR operates as a monopoly in the stock car racing market and engages in anticompetitive business practices that violate U.S. Sherman Antitrust laws. They argue that the teams are at a disadvantage as NASCAR prevents their independence and fair competition due to the imposed contractual restrictions.

When asked how his rocky 2025 season went, Hamlin quipped, “Can I plead the fifth?” But when the focus returned to the charter system, his tone sharpened. Asked why he considers the system unfair, he replied, “Your costs aren’t covered to put on their show.”

Denny Hamlin‘s 40-minute testimony ended not with closure, but a pause. His testimony resumes Tuesday as the NASCAR lawsuit trial continues.

Verdict could redraw NASCAR’s future

As emotional as Denny Hamlin’s testimony was, the stakes behind his words stretch far beyond a single courtroom. The outcome of the NASCAR trial has the power to reshape NASCAR’s entire competitive and financial landscape. Moreover, it could potentially decide the fate of both 23XI Racing and Front Row Motorsports as we begin preparing for the 2026 season.

If the court sides with 23XI and FRM:

The first step will be determining financial damages. Those damages are capped at actual losses. However, under antitrust law, the judge can triple that number. Now, this could cost NASCAR tens of millions. Beyond the money, the judge is also responsible for crafting remedies. And those remedies could be seismic.

These could include anything from requiring track sales to revising or eliminating the charter system, to altering exclusivity rules, or even forcing changes to the Next Gen car program. In short, a win for the teams in the NASCAR lawsuit could trigger a structural reset unlike anything the Cup Series has ever seen.

If the court sides with NASCAR:

If the jury rules for the sanctioning body, 23XI and FRM would almost certainly be pushed into the 2026 season as open teams. This means that they will be racing without guaranteed entries, revenue, or playoff eligibility. And, even if the teams win the case, that open-team scenario is still possible. Just less likely.

The greater threat is existential. Both organizations face a realistic chance of shutting down within a year while appeals play out, with sponsors, income, and competitive stability all at risk.