It’s NASCourt Day 2.

Day 1 of the NASCAR lawsuit saw Denny Hamlin in a raw, emotional moment when his voice cracked as he described the impossible position teams have been pushed into. Day 2 shifts into something deeper.

Now, the NASCAR lawsuit moves from emotion to evidence. Here’s every key point Denny Hamlin made in the court and how it shapes the $205 million antitrust war.

Hamlin lays out the core of his NASCAR lawsuit fight

Denny Hamlin didn’t waste a moment and went straight to the heart of the dispute: the 2025 Charter Agreement. He said 23XI refused to sign it because the document, as written, would’ve locked teams into seven more years with zero chance to renegotiate even if the sport’s revenues skyrocketed.

“It would have been signing our own death sentence,” Hamlin said.

According to Hamlin, the teams asked for something simple from NASCAR:

• A fixed seven-year term, not an automatic renewal.
• Good-faith renegotiation after those seven years.
• No non-compete if their charter expired.
• Checks and balances so NASCAR couldn’t unilaterally raise costs.
• Payments for team IP if NASCAR wanted to take or use it.
• And absolutely no Driver Incentive Program that lets NASCAR monetize the very talent sponsors pay teams for.

“You’re taking our biggest asset and monetizing it,” he said.

Only after setting that foundation did Hamlin move into the financial reality behind 23XI in the NASCAR lawsuit. And it revealed a picture that was far less stable than what NASCAR actually claims it to be. He testified that the team operates at roughly a very low 2.26% profit margin despite bringing in nearly a massive $40 million in sponsorship.

Denny Hamlin’s warning hit hard. “I’m one sponsor away. All it takes is one to go away, and all of this profit is gone.”

And, if you dive deeper, you’ll realize that he isn’t wrong. With NASCAR teams largely earning from sponsorship money, the loss of even one of them can wipe the profits away significantly.

Then, he said that the Cup teams collectively have lost more money over the last three years. On top of that, the new broadcast deal, which shifts visibility from broadcast networks to streaming, has weakened their biggest value proposition: on-screen exposure.

Sponsors have noticed this, which is why they’re far less willing to spend those big dollars now. Hamlin says teams have repeatedly warned NASCAR. But, at the end of it, little to nothing has changed.

He also said Steve Phelps originally promised a “new paradigm” in the next charter deal. However, that never materialized. Costs have continued to increase, the teams have no real path to meaningful revenue growth, and on top of it, NASCAR taking away the team IP has further taken away an entire income stream.

Then came one of the day’s most viral moments in the NASCAR lawsuit: NASCAR’s lawyer accused Hamlin of exaggerating his financial investment. Hamlin claims he has personally spent $45 million. However, contrary to this claim, NASCAR argues the real figure is closer to $10 million. Hamlin pushed back, saying much of that money exists as loans he is directly responsible for.

It was also revealed that 23XI’s combined ownership investment totals $26,985,000, and despite NASCAR suggesting Hamlin made a “900% ROI,” the team is valued at $160.2 million because of growth. And not because of profitability. Hamlin said from Day 1 he promised Michael Jordan they would build a championship-level team without losing money.

However, in the end, he admitted he often buffers MJ from the harsh financial truths because “I don’t want him to think the team is dumb and make him want to leave, because then I’m left holding the bag.”

Even their profit years tell a complicated story.

• $2.5M in 2022
• $3.5M in 2023
• Projected $5M+ from 2025 onward

However, Hamlin revealed that they lost money in 2024, including roughly $1M in rent paid to Airspeed (a building owned by Hamlin and Jordan).

Emails between Hamlin, Curtis Polk, and Jason Mason revealed something the jury seemed to pay attention to: They never built 23XI to get rich. They built it because they genuinely love the sport and believed in NASCAR’s future. But Hamlin’s testimony made one thing clear:

He believes NASCAR’s structure is holding that future hostage.

And now, with every document, email, and financial model on the table, Day 2 showed exactly how deeply this fight cuts into the business of owning a Cup team.