DaytonaRacingDigest

Kyle Larson. Credit: Imago Images

Kyle Larson reveals why he got a free pass from Rick Hendrick in his multi-million dollar contract

For NASCAR stars, racing outside the organization is exactly where the risk becomes exponential. Yet the freedom it gives a driver is thoroughly appreciated by many. Kyle Larson’s dirt schedule sits right there in that uncomfortable place between risk and freedom.

Larson has now come out to explain exactly why Rick Hendrick and Hendrick Motorsports allowed him to chase his own racing endeavors, especially after he started piloting the No. 5 Chevrolet.

“Hendrick Motorsports is accepting of the fact that it is who I am, I love doing it, and it makes me better, and they’re willing to take the risk along with me,” Larson said on the Racin’ With The Boys podcast.

Nov 2, 2025; Avondale, Arizona, USA; NASCAR Cup Series driver Kyle Larson (5) celebrates his championship victory with team owner Rick Hendrick following the Cup Series Championship race at Phoenix Raceway. Mandatory Credit: Gary A. Vasquez-Imagn Images

In fact, it seems that this freedom causes no problems for Hendrick, as they signed him to a five-year extension in February 2026 lasting through 2031. His base salary is around $8 to $10 million annually.

Larson also seems to be doing excellent in his role for Hendrick, standing fourth after seventeen races this season.

“Back when, like the early part of my career, yeah, I was not allowed to run the dirt stuff,” Larson recalled. “But then, like, each year kind of went by, and I would get a little bit more,” he added on the podcast.

The proof for the same came in 2021 when Larson won 10 Cup races alongside the championship in his very first season for Hendrick. “That really showed them that it’s not a distraction,” he explained.

This change in Hendrick’s culture to allow drivers more liberty is quite a new one. In fact, earlier times showcased a much harsher team policy. Let’s find out more.

Kahne’s ban shows Hendrick’s earlier line

To understand the situation a bit better, we have to go all the way back to 2012 when Kasey Kahne joined Hendrick Motorsports. The No. 5 seat then carried with it a lot more restrictions. It was reported by FloRacing that Kahne’s move to Hendrick came “at the expense of his Sprint Car and Midget sidequests.”

The reason was again risk. Hendrick reportedly believed that if they had signed a driver and invested heavily in him, it was not appropriate to allow him to race elsewhere, exponentially increasing his chances of injury and potentially affecting his ongoing contract.

Despite that, Kahne delivered Hendrick 6 wins, 35 top-fives, and 73 top-10s through 2017. Yet Larson stands in sharp contrast to Kahne.

Some would argue that Larson’s freedom is exactly what allowed him to fully open up within the organization, delivering a championship in his very first year and settling many of the earlier doubts surrounding the risks.

You can read more on the Daytona Racing Digest!

Written by

Uday Jakhar

Edited by

Suyashdeep Sason