"No one else really has that ability to do that" - Denny Hamlin points to X-factor behind HMS and Team Penske's strong foothold in NASCAR

On the latest episode of the "Actions Detrimental" podcast, released this week, Denny Hamlin shared his take on why teams like Hendrick Motorsports and Team Penske have been able to stay in the sport for long, unlike other teams. Hamlin took up the subject of NASCAR sponsorships in light of recent comments made by Tony Stewart.

The SHR co-owner recently opened up on his decision to leave the sport at the end of 2024, on which Denny Hamlin claimed that when a team begins to lose manufacturer deals and sponsors, it's tough for that team to make ends meet.

Hamlin further added that he felt teams like Hendrick Motorsports and Team Penske are somewhat immune to this harsh reality of NASCAR. He said,

"I think that the only people that have the staying power in our sport for forever and ever is Penske and Hendrick, and it’s why they probably win the bulk of the races. [Joe] Gibbs, you can definitely throw in there as well, but there’s the only ones that can sustain their sponsorship because of the B2B that they leverage to get that sponsorship. No one else really has that ability to do that, so it makes everyone else so fragile, which makes them hard to invest, which makes it hard to perform. It’s just a snowball that happens in this business that makes it extremely difficult" [8:20].

Speaking about what a B2B association is, Denny Hamlin took up a hypothetical example of Hendrick Motorsports.

He explained that an organization would go to a sponsor like NAPA Auto Parts, and in exchange for buying all their parts to use in their business, they'd take up a NASCAR sponsorship for a certain number of races.

Hamlin added,

"It is being able to leverage that which is huge. That's something that those guys have a strategic advantage over and you see most of their brands on their cars, you see Hendrick and Penske, they're automotive-related because that's the business that they're in."

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Denny Hamlin compares old scenario of NASCAR sponsorships to present day

While addressing the subject of sponsorships in the sport, Denny Hamlin spoke about how things aren't what they used to be in NASCAR. Hamlin recalled a time when many Fortune 500 companies couldn't find a car to get on as sponsor, such was the demand and competition. Hamlin described,

"There were so many opportunities back then and we’re talking 10-15 years ago before the other sports started putting patches on their uniforms and helmets and things like that. If you have some sponsorship media dollars you want to spend in your company, there’s so many different avenues you can use it for now,"

But in the modern age of technology, market competition, and more avenues such as social media platforms, Denny Hamlin suggested things have become different.

He further added that the importance of sponsorships for teams has become even greater while the number of sponsorships has gone down compared to the old days. In light of all of this, Hamlin said, the current landscape is a difficult one for the teams.