The landscape of NASCAR is poised for significant change, with Denny Hamlin advocating for a substantial influx of investment – potentially in the billions – to fuel growth and modernization. This call comes on the heels of a landmark settlement in the antitrust lawsuit brought by 23XI Racing and Front Row Motorsports against NASCAR, a victory that secured permanent charters for all teams and a more equitable financial footing.
The settlement, finalized after an eight-day trial, represents more than just a win for Hamlin and his co-owner Michael Jordan, or for Bob Jenkins of Front Row Motorsports. It fundamentally alters the charter system, moving it to an “evergreen” model that guarantees long-term access for teams without the constraints of restrictive renewal cycles. Hamlin emphasized the collaborative spirit behind the legal challenge, stating, “We really stuck our neck out for all the race teams and there’s no doubt in my mind that it would not have lasted as long as it did if we were just looking to change it for ourselves. We were very adamant that whatever changes needed to be given to every team and hopefully they appreciate that.”
However, the legal triumph is merely the first step. NASCAR is currently grappling with a decline in television viewership, having experienced a 14 percent drop in broadcast ratings year-over-year. While this decrease was partially anticipated due to the shift of five races to streaming platforms, it underscores the need for proactive measures to revitalize the sport’s appeal. Hamlin believes a significant financial injection is crucial, mirroring the success seen in Formula 1 following Liberty Media’s substantial investment.
“We need someone to come in and invest like billions into heavy promotion, heavy upgrades on everything,” Hamlin explained. “And while it might come to a short term loss, it will certainly have long-term gain. We saw what happened with Liberty Media, what they did with Formula 1, and influxed a lot of money into the sport and it took off. That’s just the way in works nowadays. I think that’s the kind of thing you need.”
Hamlin acknowledged NASCAR’s recent marketing efforts, praising the grittier tone and the “Hell Yeah” initiative, but believes a more substantial catalyst is required to reignite growth. “I think that that’s the kind of thing that you need,” he said. “I’ve been very happy with the direction and promotion this season with their social and digital content. I believe it’s the right direction but it needs something big to take it back into the growth phase we’re all hoping for. We can tread water. We can do that. But I think it’s going to take a significant amount to really grow this thing.”
The existing charter agreement already permits private equity investment in teams, and NASCAR has been actively investing in its facilities, with recent renovations at Daytona, Talladega, Phoenix, Richmond, and Homestead-Miami. While the permanent charters provide financial stability, Hamlin noted that they haven’t dramatically altered year-to-year revenues, with the primary change being in revenue sharing. “It put us on stable ground that next time we’re negotiating, we can’t get told ‘sign it or else,’ so that’s beneficial,” he stated. “It certainly allows private equity to look at these race teams just like someone would look at NASCAR and say ‘okay, that is where I want to put my money in the long term’ because they see growth possibility.”
Hamlin cautioned that the revitalization process will be a lengthy one, estimating it will take 10-15 years to return to a period of sustained growth, mirroring the time it took for the sport to experience its previous decline. “It’s going to take, collectively, a lot of work to kind of dig out of the hole,” he said. “This didn’t just happen overnight. It’s been a slow grind over the past 10 years and some of it was due to decisions made 15 or 10 years ago. Turns out, some of those decisions were not the right way to go, and we’re starting to reverse some of those things. But damage has been done and we need to build this thing back up.”
Hamlin remains optimistic about the potential for growth, emphasizing the enduring appeal of car racing in the United States. “We find still plenty of people in this country that are excited about cars and car racing. We see it in viewership numbers of a lot of different racing series. How can we get them excited about NASCAR? That’s going to take some work and it’s going to take a few years to make that happen.”
