NASCAR has issued an L2-level penalty to Denny Hamlin and the No. 11 team of Joe Gibbs Racing, one that takes away numerous points.
According to a penalty report, NASCAR found the team in violation of Sections 14.7.1.E&F and 14.7.1.1.B&E of the NASCAR Rule Book due to issues with the race-winning engine from Bristol Motor Speedway.
As a result, Hamlin loses 75 driver points and 10 playoff points. Joe Gibbs Racing loses 75 owner points and 10 playoff points. Crew chief Chris Gabehart receives a $100,000 fine.
"Each race-winning engine must be inspected by NASCAR once the race team determines that its life cycle is complete," the sanctioning body said in a statement.
"In this instance, prior to presenting the engine to NASCAR for inspection, Toyota Racing Development disassembled and rebuilt the No. 11's 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."
Per NASCAR, a race-winning engine "will be long block sealed by NASCAR and must be completely inspected by NASCAR" before the team can disassemble it. Additionally, assembly seals on these long block-sealed engines must not be altered, removed, or replaced without prior approval from NASCAR.
According to NASCAR, the Bristol win no longer counts toward playoff eligibility, advancement in the playoffs, or any tiebreaker situations.
"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," said TRD USA President David Wilson. "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."
Before the penalty, Hamlin was third in the Cup Series standings and in contention for the regular-season championship. Winning this would have secured an additional 15 playoff points. Now, however, he is sixth in the standings and out of contention with two races remaining in the regular season.
The penalty also drops Hamlin in the playoff seeding. He was set to be the second seed with 2,029 points. Now, he will likely be the sixth seed with 2,016 points.