Joe Gibbs Racing star and 23XI Racing co-owner Denny Hamlin has exposed just how much it costs for a team to go racing in the NASCAR Cup Series.

Hamlin made the reveal on the opening day of the 23XI Racing, Front Row Motorsports lawsuit against NASCAR, which began in Charlotte, North Carolina, on Monday.

Last October, 23XI and FRM sued NASCAR after refusing to sign up to the new Cup Series charter agreement, alleging anticompetitive and monopolistic practices.

Denny Hamlin's exposes NASCAR costs

The outcome of the case is set to be decided this month, and on Monday, Hamlin was called to the stand late in the day to provide his testimony.

One of the most fascinating parts of his words on the opening day were with regard to the costs associated with running a team in NASCAR's top series.

Hamlin testified that it costs the Cup Series field approximately $20 million just to get a car on track each season. This is a problem, he argues, given that the current Cup Series charter agreement only covers $12.5 million of this.

“The difficult part is coming up with tens and tens of millions just to break even,” Hamlin said. “Your costs aren’t covered to put on (NASCAR’s) show.”

To cover the remaining $7.5 million, teams must find lucrative sponsorships or face going bust, as many have over the years, as Hamlin thought it important to point out.

On top of this, costs can fluctuate season-to-season, with some mid-season updates costing teams as much as $1.5 million, and the introduction of an international race in Mexico City last season having burdened them further.

11 of the original 19 teams that first signed up to a NASCAR 'charter' system in 2016 are no longer in business, and Hamlin used this to stress the unfairness of the system.

"If the terms were fair, they wouldn't have gone out of business,” Hamlin told the court. “Only one side is going out of business."

JGR alliance cost revealed

Elsewhere during his testimony, Hamlin revealed how much it costs 23XI to have an alliance with Joe Gibbs Racing for each of their three full-time cars.

23XI first announced a technical alliance with JGR back in 2020, ahead of their entry to Cup Series racing with a single car in 2021.

Hamlin stated that 23XI pays JGR $2.66 million per full-time car at present for this privilege, working out at roughly $8 million annually.