After having to deal with a loss of nearly $70 billion, what is left of Denny Hamlin’s exhausting core?

NASCAR’s depleted financial model has been eating away at teams and drivers for years. Consider Stewart-Haas Racing – the 2-time championship winning team had to close after a horde of sponsors left last year. So after Michael Waltrip Racing faced a worldwide ban in 2013, the team folded within a year after significant losses. Now, Denny Hamlin, who has shown a beacon of hope to challenge NASCAR’s system, has also fallen victim to a financial setback.

The 23XI Racing co-owner is waging a legal battle with the sport over its monopolistic practices. The same practice makes teams heavily dependent on sponsorship money – and Denny Hamlin depended on FedEx for over two decades. During the past week, however, he has lost the decisive anchor. Now there are only a few slivers of hope left for him.

Denny Hamlin’s Declining Chances

Since the #11 driver debuted in the NASCAR Cup Series, he had a strong pillar of support. FedEx has sponsored Denny Hamlin’s races since 2005, making it the longest running partnership in NASCAR until recently. The driver-sponsor duo has won crown jewel events such as the Coca-Cola 600 and Daytona 500. However, the $70 billion transportation company began cutting its commitment in 2021, going from more than 30 races to 13 in just three years. Finally, Hamlin posted one “Thank you, FedEx” video just an hour before the Phoenix race got underway.

Still, FedEx’s departure opened up new opportunities for other sponsors to take the lid on Denny Hamlin’s No. 11 car. The staggered reduction in involvement allowed Mavis Tires & Brakes, Sport Clips, Interstate Batteries and Yahoo to serve as the primary sponsor of the Toyota No. 11 on several occasions. However, Hamlin has often claimed that he would leave Joe Gibbs Racing with FedEx. His contract, which expires at the end of 2025, makes him one of the highest paid racers in the sport. Ripples are already stirring up the financial pool, given Hamlin’s courtroom battle.

The NASCAR case recently dealt a blow to 23XI Racing and Front Row Motorsports. Due to a lack of proof of injury for loss of sponsorship, a federal judge denied a preliminary injunction that would have allowed both teams charters for next season. While this leaves 23XI and FRM in a wildly turbulent state, a positive update also emerged. The judge ordered expedited discovery to see enough merit in the case and proceed quickly to open key-sealed documents so the two sides can argue in court.

NASCAR also lifted the “no-compete” clause out of their original agreement to allow 23XI and FRM to run as open teams next season. While this is still a major financial blow to Hamlin and Michael Jordan’s team, it is certainly a hope. However, the situation is still unclear, and Denny Hamlin’s own loss of sponsorship leaves him hanging. One option is for him to drive the third car in 23XI for 2025 – but as an open team, 23XI will lack financial assurances, escalating operational challenges and risks.

True to his nature, Denny Hamlin handles this crippling situation calmly.

Finding peace in chaos

A strange encounter unfolded during a press conference at Phoenix Raceway last weekend. Denny Hamlin and Mike Forde, NASCAR’s Executive Director of Racing Communications, were the moderator and topic. Just a day ago, ironically enough, they were at opposite ends of the courtroom at a court hearing. Despite the tense situation, Hamlin casually poked fun at Forde in Phoenix: “How badly do you want me to get off the stage right now?” This cool approach is reflected in Hamlin’s view of losing a two-decade-old sponsorship. FedEx has propelled Hamlin to the top of his Cup Series career, making him a Hall of Fame caliber driver.

So instead of looking on the darker side of things, with Joe Gibbs Racing losing one of its massive financial anchors, Hamlin chose to thank FedEx. The journey they undertook together was one of excellence and perseverance. “It’s been a great partnership that we’ve had for almost 20 years. They’re the ones who really took a risk on me when I was just running the Xfinity Series about fifth through eighth every week…that risk paid off in many years and couldn’t be happier to be aligned with FedEx, and I definitely got to do a lot of good things off the field as well. It’s made my career, it made it a lot easier to be aligned with someone for so long, ​​and we will continue to represent on and off the racetrack in the future.”

It’s not a dazzling time to be Denny Hamlin in NASCAR right now. But if you really are him, then riding these turbulent waves should be just a phase that will soon pass.