"It cost us $18,000,000 a year to run a car" - Denny Hamlin points out major issue with current NASCAR charter system

Joe Gibbs Racing's #11 driver, Denny Hamlin, has been extremely vocal about the challenges team owners have continually faced in negotiating the new charter deal with NASCAR. Hamlin has highlighted the capital-intensive nature of the sport, emphasizing the cost of running a single Cup Series team, which reaches $18,000,000 every year.

Hamlin, the Daytona 500 winner, is not just a driver in the sport. Along with NBA Hall of Famer Michael Jordan, Hamlin co-owns 23XI Racing, which operates two Cup Series charters.

There has been speculation about 23XI buying a third charter for the 2025 season, which plays into Hamlin's strong interest in expansion. NASCAR's current charter proposal reportedly has a provision that allows the France family to buy Cup charters, which Hamlin strongly opposes. Furthermore, the proposal includes a clause that does not allow permanent charters for the upcoming season.

In a recent episode of the 'Kenny Conversation' podcast, hosted by former NASCAR driver Kenny Wallace, Hamlin expressed his opinions on the current charter negotiations and the financial difficulties involved in running a Cup Series team.

"We're trying to make it more simple when we're trying to go to NASCAR and say let's lock arms, let's do this together, we'll give you these rights to go shop for us that way when you go get an official sponsor, it goes to all of us, same as what the NBA the NFL MLB does, It's not like that," he said. [1:11:25]

On the continuous sponsorship battle with NASCAR, Hamlin added,

"We have our own sponsors that NASCAR will send their own sponsorship proposal, to try to get them to spend money with them, but we need them the most because of our business model. It costs us $18 million a year to put a car on the racetrack. We've asked NASCAR to just cover our cost, nothing more just cover our cost to go put on this show for you, and the answer has been repeatedly no." [1:11:54]

Denny Hamlin, along with other team owners, has voiced significant concerns over the implications of the current charter proposal, particularly in light of NASCAR's new $7.7 billion media rights deal. This new deal, which will last for the next seven years, reportedly aligns with the duration of the new charter proposal.

Furthermore, with NASCAR's recent struggle with the renewal of their blue-chip deals and chief revenue officer Daryl Wolfe's retirement, there is fear that the sport might fall behind.

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"Somebody has to feel pain" - Denny Hamlin on the necessity for a resolution amidst charter negotiations

NASCAR has reportedly been shutting down proposals sent by team owners for the new charter deal. The need for a resolution is imperative for the future of the sport, as is maintaining a working relationship between the association and the 15 charter-holding teams.

In the same episode of the 'Kenny Conversation' podcast, Hamlin said,

"No negotiation has ever come easy, no one says 'That's what you want? Okay no problem, we'll go ahead and back the Brinks truck up and we'll just drop the money off to you'. It doesn't work that way. Somebody has to feel pain for somebody to budge or move and I just think that at this point NASCAR does not feel threatened by the teams whatsoever."[1:14:32]

The charter negotiations will play a crucial role in 23XI Racing's attempt to secure a third charter for the 2025 season. If the agreement doesn't include permanent charters, Hamlin and Jordan might decide against running a third car.