Dale Earnhardt Jr. Details the $15 million per Charter Loss Awaiting 23XI Racing Over NASCAR Lawsuit Saga

Hall of Famer Dale Earnhardt Jr. has given his verdict on the financial impact of 23XI Racing recent loss in the appeal court on the charter lawsuit.

Dale Earnhardt Jr. Details the $15 million per Charter Loss Awaiting 23XI Racing Over NASCAR Lawsuit Saga

Dale Earnhardt Jr. and Denny Hamlin (Via IMAGO)

In 2024, 23XI Racing and Front Row Motorsports send the racing community into a frenzy by filing a lawsuit against NASCAR alleging monopoly, after refusing to sign the new revenue sharing deal. Initially it was the alliances that won in the court, with the injunction and racing in 2025 without signing the deal, while suing the sport. Hall of Famer Dale Earnhardt Jr. has assessed the recent situation with the litigation.

But NASCAR has finally hit back, with the appeal court siding the sanctioning body and revoking the injunction verdict. The court indirectly told the alliance that ‘you can’t have the cake and eat it to’ and now it’s the team’s chance to file another appeal. If they fail to convince court to change the decision, NASCAR can strip the teams’ charters, and force them to race as open teams, this has huge financial impact on the side.

In the latest episode of his podcast, two times Xfinity Series champion Dale Earnhardt Jr. has explained how much Denny Hamlin and Michael Jordan is going to lose as owners owing to the change. There is a significant difference between the prize money between chartered teams and open teams. Junior revealed that the team is missing out on the $12-15 million payout per car, due to the charter situation.

Why that matters is, a chartered team will get a lot more prize money over the course of the year, and it amounts to tens of millions of dollars…If you have a charter, you’re guaranteed a portion of the TV money from NASCAR. And in Denny’s case, each charter is probably getting anywhere from 10 to 15 million bucks.

Dale Earnhardt Jr. said via Dale Jr. Download podcast.

This won’t be the only financial hit on the team, as there are clauses in the team’s contract with their drivers and sponsors that allows them to move on from the team, or reduce the sponsorship fund. Currently the teams aren’t struggling to land sponsors, but if the controversy regarding the charters goes on, there will be times where the partners would think twice.

Denny Hamlin explains why 23XI Racing is in litigation with NASCAR

The Joe Gibbs Racing veteran addressed the drama around the litigation in his appearance on SiriusXM NASCAR Radio and asserted that they are fighting for everyone in the garage with the lawsuit. He wants the current system to change and make it fairer for everyone involved.

Denny Hamlin (via Getty)
Denny Hamlin (via Getty)

Hamlin believes the litigation is for the drivers, the teams and the fans. So, the three times Daytona 500 winner promised the that end result of the lawsuit trial that starts on December 1 is going to make the sport better for everyone involved.

We are fighting for a fairer system for everyone. While it’s 23XI/Front Row versus NASCAR in this litigation, this is for the drivers, the teams, the fans, everyone. I can promise you, the end result of this could be that it is better for everyone in the future and that’s what we want is just a fairer system for everyone.

Denny Hamlin said.

The comments from the star driver shows superior amount of confidence he has on their legal team to produce the result they want at the end of the lawsuit. It would be interesting to see how everything is going to playout from the appeal court to the trial court for the 23XI-FRM alliance.

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