🔗 Share this article

The basketball icon, as he cordially introduced himself in a federal courtroom on Friday, admitted that his competitive side and novelty within the sport emboldened his push for 23XI Racing to “challenge” Nascar over perceived violations of antitrust rules.

Financial Stakes and a Will to Win

Jordan shared operational insights of his 23XI team, revealing he invested $40 million of his personal wealth into the Cup Series operation launched with business partner Curtis Polk and longtime driver Denny Hamlin.

“It fell to someone to act,” Jordan stated in the Charlotte courtroom. “I was a new person, I had no fear. I felt I could challenge Nascar in its entirety. From my perspective, the sport it needed to be looked at from a different view.”

The Core Dispute: Charter Agreements and Contract Pressure

The heart of the case involves the expiration of a 2016 deal where Nascar provided each team a franchise. The concept is similar to other major leagues with separately owned franchises, such as the NBA’s Hornets or the NFL’s Panthers. This deal was due to end in 2024 when Nascar insisted on charter membership renewals.

Jordan was on the witness stand for about sixty minutes and left the court to a media frenzy, with onlookers and reporters vying for a view or a photo of the sports legend.

Leading the Legal Charge

23XI Racing is at the forefront of the push along with Front Row Motorsports for Nascar to change a business model Jordan said is unlawful to maintain excessive control.

At issue for Jordan and a fellow team representative, who testified before Jordan, are events from September 2024. Gibbs described a hectic and tense period where the racing circuit informed teams they must sign a contract extension. The document spanned over a hundred pages outlining team compensation and a guaranteed spot in Nascar-sponsored races.

A Refusal to Sign

Jordan said that his team and its ally concluded their sole viable path was to refuse a signature that 112-page package and litigate the matter. All other teams signed the agreement.

Jordan and co-owner Denny Hamlin reached out to Nascar about potential amendments or negotiations. Nascar refused to engage, Jordan said.

The Ultimate Motivation: Winning

But in the end, the pushback against what he saw as a unsustainable system was driven by the familiar goal for Jordan: Winning.

“Denny convinced me getting a third driver boosted our odds of winning,” he testified, sharing that he purchased another franchise last year for $28m despite the uncertainty. “So I dove in.”

Heather Gibbs’ Testimony

Heather Gibbs detailed her request for permanent charters, which she said a written letter to Nascar. She testified the pressure of the contract signing demand was problematic.

According to her, the team founder first tried to call and talk Nascar out of forcing signatures, but CEO Jim France declined the request.

“Don’t do this to us,” Gibbs recounted Joe Gibbs told Nascar’s leadership. She said France replied, “If I wake up and I have 20 charters, I have 20. If there are 30, I have 30.”