Denny Hamlin and Joe Gibbs Racing have been assessed a major penalty, at the L2 level, for violating NASCAR’s engine inspection requirements, the sanctioning body announced on Thursday.

As a result of the rules violation, Hamlin and Joe Gibbs Racing have been docked 75 driver/owner points and 10 Playoff Points. Chris Gabehart, crew chief of the No. 11 Toyota Camry XSE, has been fined $100,000 by NASCAR.

Per NASCAR’s Penalty Report, Joe Gibbs Racing and the No. 11 team were found to be in violation of Sections 14.7.1.E&F and 14.7.1.1.B&E of the NASCAR Cup Series Rule Book, which states that any race-winning engine must be long block sealed and completely inspected by NASCAR before the engine can be disassembled by the team, and that the long block engine assembly seals of the long block sealed engine must not be removed, altered, or replaced.

Upon announcing the penalty, NASCAR issued the following statement: “Each race-winning engine must be inspected by NASCAR once the race team determines that its life cycle is complete. In this instance, prior to presenting the engine to NASCAR for inspection, Toyota Racing Development disassembled and rebuilt the No. 11 Bristol-winning race engine. Per the NASCAR Rule Book, this violation results in an L2 penalty to the race team and driver. Toyota Racing Development self-reported this violation.”

Shortly after the penalty was confirmed by NASCAR, David Wilson, President of TRD USA, issued a statement on behalf of the team’s engine builder, Toyota Racing Development, taking the blame for the issue that ultimately caused the penalty.

“As the engine builder for our partner NASCAR Cup Series teams, TRD is solely responsible for the handling and disposition of all our engines pre- and post-race. Despite procedures being in place, Denny’s race winning engine from Bristol was mistakenly returned to our Costa Mesa facility, disassembled, and rebuilt instead of being torn down and inspected by NASCAR per the rulebook. Although we know with absolute certainty that the engine was legal and would have passed inspection, we left NASCAR in an impossible position because they were not given the opportunity to properly inspect our engine. We have reviewed our processes and have implemented several additional steps to ensure that this never happens again. TRD takes full responsibility for this grievous mistake, and we apologize to Denny, Chris, Coach Gibbs, the entire JGR organization, NASCAR, and our fans.” 

In addition to the points penalties issued to the No. 11 team, Hamlin’s victory earlier this season at Bristol Motor Speedway will no longer count towards his eligibility for the NASCAR Cup Series playoffs, advancement in the playoffs, or eligibility for non-points events and tiebreakers. Hamlin is a three-time winner on the 2024 NASCAR Cup Series campaign, so despite losing the eligibility from his Bristol win, the Chesterfield, Virginia native is still locked into the post-season.

The 75-point deduction drops Hamlin from third to sixth-place in the regular-season point standings, and effectively eliminates him from contention for the Regular Season Championship. The veteran driver’s guaranteed Playoff Point total of 21, has been decreased to 11.

Hamlin will have two races, at Daytona and Darlington, to attempt to make up the points lost from this penalty. As of the time of publishing, Joe Gibbs Racing has yet to issue a statement.