Denny Hamlin says it costs $18M to run a NASCAR team

Landon Cassill: “NASCAR is not making you hire 100 engineers.”

NASCAR and their teams are currently in charter negotiations. Following the 2024 season, the current agreement will expire.

Teams are seeking a larger piece of the pie from TV revenue. Currently, tracks receive 65%, teams share 25% while NASCAR keeps 10% for themselves.

Denny Hamlin is the co-owner of 23XI Racing. He stated that it costs $18 million a year to operate a team.

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Denny Hamlin details negotiations with NASCAR and the teams

Landon Cassill comments

Landon Cassill responded via The Money Lap podcast to the statement from Hamlin, “I want to change [Hamlin’s] wording to say, ‘We spend $18 million a year in NASCAR.’ “

He added, “I want [Hamlin] to approach this as nuanced as you can. NASCAR is not making you hire 100 engineers. NASCAR is not making you rent private jets.”

“Now, again, this is a competitive business. It’s a competitive sport. It’s a professional sport. We spend those things because it gets us a competitive edge, because it gets us faster race cars, and faster race cars get us in victory lane.”

“There’s a little conundrum there where what Hamlin is saying is truthful. He’s trying to field a competitive team, and it takes $18 million to field a competitive team. NASCAR’s position in hearing these team owners sort of complain about how much it costs, NASCAR can very easily take this position that, ‘We’re not making you spend $18 million.’ “

NASCAR charter negotiations have expired without an extension

Denny Hamlin responds

Hamlin has since heard those comments from Cassill. He’s elected to respond:

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

“First, 18M is just for the car on the track to put on this show each and every week (NO driver). Seems as though you think it’s excessive. Well we (teams) opened our books to NASCAR to show what exactly that money was spent on and that it was not excessive. (Nas executives agreed).”

“You mentioned that anything we make beyond 18m is ‘profit’. That would be incorrect.”

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

“That all cost a significant amount of money that is above and beyond the numbers listed above. That money is spent as not only as a necessity for our team but to GROW the sport thru on and off the track activation.”‘

Hamlin added, “Hopefully this is helpful when debating this topic.”

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Links

Denny Hamlin | Landon Cassill | NASCAR