What Denny Hamlin’s contract extension with Joe Gibbs Racing means for his future

Denny Hamlin’s contract extension with Joe Gibbs Racing is not only good for Hamlin’s future as a driver, but also for his future as a NASCAR Cup Series team owner.

Hamlin, whose contract was set to expire following the 2021 season, announced an extension on Monday, ending speculation that he might leave Gibbs to drive for his own new team.

Hamlin and NBA legend Michael Jordan will debut 23XI Racing this season with driver Bubba Wallace behind the field of the No. 23 car. The team will compete with technical support from Toyota and Joe Gibbs Racing.

While Hamlin will have one eye trained on the No. 23 Toyota in the garage, the 40-year-old driver is at the peak of his career on the track. He had seven wins last year, the second-most of his career, and has won 13 over the past two seasons. He finished fourth in points for the second year in a row.

Denny Hamlin leads the field in the NASCAR Cup Series O'Reilly Auto Parts 500.

With 44 career wins and six top-five points finishes, Hamlin is embarking on a hall-of-fame career, with only a Cup championship missing from his resume. He has won three Daytona 500s, including the last two.

Hamlin has spent his entire 16-year career with Gibbs, starting with two wins as a rookie in 2005. He has also spent his entire career with primary sponsor FedEx, the longest driver-sponsor pairing in the sport and one year shy of Jimmie Johnson’s 17-year run with Lowe’s.

.@JoeGibbsRacing, @FedEx and I have shared a lot of big wins and special moments together throughout our 16 years together. And we’re nowhere near done. Still have a lot of racing and winning to do for a coach and all the FedEx team members. Let’s go! https://t.co/tpIYQ7Z4FM

— Denny Hamlin (@dennyhamlin) February 1, 2021

Though the length and terms of his new contract were not released, the deal means he could finish his driving career with Gibbs before turning his full attention to his own team.

Will Denny Hamlin continue to be a championship contender for Joe Gibbs Racing?

It also means Hamlin will likely continue to win races and contend for the elusive championship. He ran door-to-door with nine-race winner Kevin Harvick last season and made the championship round of the playoffs for the second straight season.

With Gibbs’ four-car team forming one of the most powerful forces in the sport, and FedEx secure for the immediate future, Hamlin should continue to be a championship contender.

How will Denny Hamlin's contract with Joe Gibbs Racing impact his ownership of 23XI?

The contract extension should also bode well for 23XI. Hamlin co-owns the team with Jordan and the group will lean heavily on Joe Gibbs Racing as it makes its foray into NASCAR. Gibbs has a history of helping satellite teams succeed. It’s technical alliance with Furniture Row Racing powered the single-car team and driver Martin Truex Jr. to the 2017 Cup Series championship.

If Hamlin continues to win races and contend for the title, his team’s success could trickle down to 23XI, helping the first-year team get up to speed. Mike Wheeler, Hamlin’s former crew chief, will lead Wallace’s team, perhaps opening the door for a free-flow of information between the two groups. And don’t be surprised to see Wallace drafting with his new boss in the Daytona 500, while his other boss (Jordan) watches from atop the team’s pit box.

Hamlin’s biggest challenge in 2021 will be making sure his new venture is not a distraction while he races for wins and the championship for Gibbs. He won’t be the first Cup driver to wheel a car for one team while owning another car in the same race and series. The late Dale Earnhardt drove his final two seasons for Richard Childress Racing while his son, Dale Earnhardt Jr., and Michael Waltrip drove for Dale Earnhardt Inc.

Hamlin should continue to shine for Gibbs while helping 23XI get up to speed. If he continues to excel behind the wheel, then his new contract will pay off for both teams.

We’ll get the first hint of how it will all play out in the Feb. 14 Daytona 500, where Hamlin will be racing for his third straight Harley J. Earl Trophy while Wallace makes his debut with the new Jordan/Hamlin team.