🔗 Share this article

The basketball icon, as he cordially introduced himself in a federal courtroom on Friday, admitted that his drive to win and novelty within the sport motivated his push for 23XI Racing to confront Nascar over perceived violations of antitrust rules.

Financial Stakes and a Will to Win

The owner disclosed operational insights of his racing venture, saying he invested $40m of his own funds into the Cup Series operation launched with business partner Curtis Polk and longtime driver Denny Hamlin.

“Someone had to step forward,” Jordan stated during testimony. “I was a new person, I had no fear. I believed I could take on Nascar as a whole. I felt as far as the sport it needed to be looked at through a new lens.”

Central Issue: Franchise System and Renewal Demands

The heart of the case involves the end of a 2016 agreement where Nascar granted each team a “charter”. The concept is similar to other major leagues with separately owned franchises, like the NBA’s Hornets or the NFL’s Panthers. This deal was set to expire in 2024 when Nascar demanded teams renew their charters.

Jordan was on the witness stand for about sixty minutes and exited the courthouse to pandemonium, with onlookers and reporters clamoring for a view or a picture of the sports legend.

Leading the Legal Charge

Jordan’s 23XI is leading the full-court press along with Front Row Motorsports for Nascar to overhaul a operating model Jordan said is unlawful to maintain excessive control.

At issue for Jordan and Heather Gibbs, who preceded Jordan, are events from September 2024. Gibbs described a hectic and tense six hours where the racing circuit told teams they had to sign a charter agreement extension. This agreement consists of over a hundred pages outlining pay for chartered teams and a guaranteed entry in every race.

Choosing Litigation

Jordan said that his team and its ally decided their sole viable path was to decline to sign that extensive document and take the issue to court. The other 13 organizations agreed to the terms.

The team owners reached out to Nascar about potential amendments or negotiations. Nascar refused to engage, Jordan said.

The Ultimate Motivation: Victory

Ultimately, the pushback against what he saw as a financially unsustainable model was mostly about the familiar goal for Jordan: Winning.

“Denny convinced me adding a third car improved our chances to win,” he testified, sharing that he purchased another franchise last year for $28m despite the uncertainty. “So I took the plunge.”

Heather Gibbs’ Testimony

Gibbs described her request for permanent charters, submitted in a formal letter to Nascar. She said the pressure of the signature deadline didn’t sit well.

She said, the team founder first attempted to call and talk Nascar out of demanding signatures, but CEO Jim France refused the appeal.

“Please don’t force this on us,” Heather Gibbs said was the message to Nascar’s executives. She said France replied, “If I wake up and I have 20 charters, that’s what I have. If I have 30, that’s the number.”