Denny Hamlin Says It Costs $18 Million to Run a NASCAR Team

NASCAR and its teams are currently in charter negotiations, with the current agreement expiring after the 2024 season.

Teams are trying to get a bigger piece of the pie from TV revenue. Currently, tracks get 65%, teams share 25% while NASCAR keeps 10% for itself.

Denny Hamlin is a co-owner of 23XI Racing. He said it costs $18 million a year to run a team.

Denny Hamlin details negotiations with NASCAR and the teams

Landon Cassill comments

Landon Cassill responded to Hamlin’s statement on The Money Lap podcast: “I want to change (Hamlin’s) wording to, ‘We spend $18 million a year on NASCAR.'”

He added: “I want (Hamlin) to approach this in as nuanced a way as possible. NASCAR doesn’t let you hire 100 engineers. NASCAR doesn’t let you rent private jets.”

“Well, again, this is a competitive business. It’s a competitive sport. It’s a professional sport. We spend these things because it gives us a competitive advantage, because it gives us faster race cars, and faster race cars get us into victory lane.”

“There’s a little bit of a conundrum where Hamlin’s words are true. He’s trying to field a competitive team, and it costs $18 million to field a competitive team. NASCAR’s position, when you hear these team owners complaining about how much it costs, NASCAR can very easily take the position that ‘We’re not going to let you spend $18 million.'”

NASCAR charter negotiations have ended without extension

Alexa De Leon and son, Beau Reddick, Tyler Reddick in victory lane (1) — Credit: TALLADEGA, ALABAMA – APRIL 21: Tyler Reddick, driver of the #45 Jordan Brand Toyota, celebrates with crew and family in victory lane after winning the NASCAR Cup Series GEICO 500 at Talladega Superspeedway on April 21, 2024 in Talladega, Alabama. (Photo by James Gilbert/Getty Images)

Denny Hamlin responds

Hamlin has since heard those comments from Cassill. He has chosen to respond:

“Well. Lots of thoughts,” Denny Hamlin opened up in response to Cassill.

“First of all 18M is just for the car on the track to put on this show every week (NOT a driver). It sounds like you think it’s over the top. Well we (teams) opened our books to NASCAR to show exactly what that money was spent on and it wasn’t over the top. (NAS executives agreed).”

“You said that anything we earn over 18 million is ‘profit’. That would be incorrect.”

“As someone who started a team from scratch and kept it as lean as possible, there are MANY other departments at a race team that are 100% necessary to function. Business, marketing, sponsorship, social media, it goes on and on.”

“All of this cost a significant amount of money above and beyond the amounts listed above. That money is not only spent as a necessity for our team, but also to GROW the sport through activation on and off the court.”

Hamlin added: “I hope this is helpful in discussing this topic.”

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