Why Is Denny Hamlin Suing NASCAR? Inside the Antitrust Fight

It is not every day that a major NASCAR figure takes the series he races in to court. That is exactly what’s unfolding as Denny Hamlin and his team claim the sport is rigged from the top down. The surprising move has sent ripples through the sports world as well as the racetrack.

The question on many minds is: Why is Denny Hamlin suing NASCAR? He and his team say NASCAR’s charter and revenue model unfairly locks others out. The legal action could change the sport’s business model forever, but the court fight is only getting started.

Here's what we know.

According to Fox Sports, Denny's team, 23XI Racing, along with Front Row Motorsports, filed a federal antitrust lawsuit against NASCAR in October 2024. They allege that the series uses its charter system to maintain monopoly control.

The case claims that NASCAR owns the field via charters that guarantee teams entry and payouts while limiting other teams’ access to those benefits. The lawsuit further contends that the series forces teams into agreements and blocks independent earning models.

Denny co-owns 23XI with Michael Jordan and says the team is fighting for fairness. He told AP News he is “pretty confident” in the case against NASCAR.

There is a trial date set for Dec. 1, 2025, but in the meantime, NASCAR attorney Chris Yates said "the teams should not have the benefits of the charter system they are suing to overturn."

The teams argue they want transparency and a fair share of profit. NASCAR counters that the system keeps racing stable and competitive.

As reported by FOX Sports, NASCAR Commissioner Steve Phelps hopes they can settle before the trial begins. He stated that NASCAR believes it acts within its rights and wants to keep the sport unified.

Still, the legal fight has already raised questions about how teams earn money, negotiate sponsorships, and secure their place in each race. The charter debate may determine how much teams can control their future.

"NASCAR is fully aligned with our race-team partners who have submitted declarations hoping to end this litigation. We are trying our hardest. I am trying my hardest both as a fan as well as the commissioner of this sport that I've loved since I was 5 years old," Steve said.

"While two of the 15 teams may not share that view and seem set on an unfortunate court battle, I hope that we can all agree that our racing is as good as it has ever been and we care about how we serve our fans."

Steve continued, "The charter system is a critical part of the sport, something we created with and for the teams. We'll continue to defend and preserve it. Make no mistake, the lawsuit puts this at risk."

If the suit succeeds, it could force changes to how NASCAR issues charters, shares revenue, and negotiates media deals. But how will it impact Denny?

Fans argue it cost him the championship title at the race on Nov. 2, 2025, when NASCAR called a caution at the very end of the race.

At its core, the NASCAR lawsuit is not just financial. It is about who controls the game. Teams say the series holds too much power. NASCAR says it’s protecting the sport’s integrity. The dispute also points out the risk for teams labeled “open” instead of chartered, meaning they may lose guaranteed profits and race entry.