The struggle is real. For many NASCAR teams and drivers, financial sustainability is a major stress that they have to live with every day. The issue came to the forefront when a team as high-profile as Stewart-Haas Racing announced its intention to cease operations at the end of the ongoing 2024 season. While the fight for survival highlights the underlying issues within the sport, there are always a few exceptions that are proving to be trailblazers, contributing to the overall health of the stock car racing ecosystem.

Reflecting on the self-financed nature of the sport, particularly in the lower tiers, 23XI Racing co-owner Denny Hamlin sheds light on how Dale Earnhardt Jr’s Xfinity Series team is proving to be an exception by reinvesting its resources back into NASCAR.

Denny Hamlin highlights NASCAR’s dire state of affairs

It wasn’t the news many fans expected to hear. Even though just three races remain before the Truck Series season concludes, Bret Holmes Racing has been forced to announce a sudden termination of its operations for the remainder of 2024. The team gained prominence by winning the ARCA Menards Series Championship in 2020 and a collaboration with Spire Motorsports propelled them into NASCAR’s third tier. However, the loss of key personnel, such as former crew chief Mike Shiplett leaving for Niece Motorsports, as well as financial issues, forced the team to shut down indefinitely.

Acknowledging that the circumstances are a grim reality many NASCAR teams have to deal with daily, Denny Hamlin addressed the issue in the latest iteration of the Actions Detrimental podcast. The veteran driver cited Junior’s team as an anomaly to the ongoing struggles, saying, “The one exception you kind of look at is Junior Motorsports. They have some pay there. Some paid drivers but they also have, you know, they’ll reinvest that money back into giving some opportunities to some young drivers and that’s what you like to see. Wish there was more of it but unfortunately, the bulk of the series is self-financed.”

There is an element of truth in Denny Hamlin’s words. Despite making it to the Round of Eight, Joe Gibbs Racing driver Chandler Smith might be forced to retire at the end of the ongoing Xfinity Series season. As things stand, the 22-year-old is without a seat for next year and has one playoff race at Martinsville Speedway to keep his title hopes alive. Speaking to FOX Sports journalist Bob Pockrass, Smith said, “I don’t have a ride next year, Bob. I could be working for my dad’s construction business and I could be hanging it up at the end of this year.”

Chandler Smith returned to Toyota and joined the #81 crew at JGR following his stint with Chevrolet and Kaulig Racing. His only other full-time teammate, Sheldon Creed, joined him from Richard Childress Racing. Smith has two race victories and is currently just 28 points away from a Championship 4 position following the Homestead Xfinity race. Meanwhile, Creed and his #18 team have gone winless thus far this season. Despite his lack of success, Creed has secured a seat for next season with the newly formed Haas Factory Team (HFT). This puts into perspective the importance of financial resources, despite success on the track.

Despite having an outside chance of making it to the Championship 4, the underlying reason for the uncertainty surrounding Smith’s future is the lack of financial resources and sponsorships he has at his disposal. Sharing his views about the situation, Chandler Smith said, “It’s not really any seats left open. The only seats left open you gotta bring a big, big pocketbook with you and I don’t have a big pocketbook.” The No. 81 Toyota Supra driver’s circumstances highlight the self-financed nature of the NASCAR ecosystem, which could only get worse unless the sanctioning body doesn’t provide more equitable terms for its teams, particularly in the lower tiers.

Hamlin assures 23XI staff won’t be impacted financially

Trending

“We Are Not Morning People”- Travel Woes Hit Home for Kyle Busch & Wife Samantha Leaving Son Brexton Grinning

Dale Earnhardt Jr. Offers a Once-in-a-Lifetime Opportunity to His Loyal Fanbase as He Gears Up for His Return With Budweiser

Tony Stewart’s Wife Leah Pruett Pens a Heartfelt Message for Husband After His Unwavering Support for His Family

“Godspeed Les” – NASCAR Loses Old School Pioneer Integral to Dale Earnhardt Jr.’s Late Modal Venture

Rick Hendrick’s Alliance Rumored to Save Chevy Prodigy Who Crashed Kyle Busch’s Party

It seems like JR Motorsports isn’t the only team that is taking care of its employees. As things stand, 23XI Racing is currently in the middle of a legal battle with NASCAR over charter disagreements, having accused the sanctioning body of being ‘monopolistic’ in its practices. Despite there being a risk of the team losing its charters, Denny Hamlin has assured the staff that they won’t be affected financially by the ongoing legal dispute.

Taking responsibility for the uncertainty surrounding his team’s charter dispute, Denny Hamlin said, “As 23XI, we’re prepared for any outcome. I think Michael [Jordan] has stated and I’ve stated to the team we will not let this affect our employees whatsoever in any kind of way, and any financial distress is going to have to fall directly on the owners. It will not fall on our people whatsoever. We will not allow that to happen.”

As things stand, 23XI Racing and Front Row Motorsports have filed an injunction, which will safeguard them from NASCAR potentially revoking their charters because of the legal battle. Meanwhile, regular series champion Tyler Reddick has made it to Championship 4 and could potentially lift the Bill France Cup at Phoenix Raceway in front of the sanctioning body’s hierarchy. Won’t it be quite a statement victory if a team in open rebellion wins the ultimate prize NASCAR has to offer?