🔗 Share this article

The basketball icon, as he cordially introduced himself in a federal courtroom on Friday, stated that his competitive side and status as a newcomer motivated his effort with 23XI Racing to confront Nascar over perceived violations of antitrust rules.

Financial Stakes and a Will to Win

Jordan shared operational insights of his racing venture, saying he put in $40 million of his personal wealth into the Nascar Cup series team co-founded with business partner Curtis Polk and longtime driver Denny Hamlin.

“Someone had to step forward,” Jordan stated in the Charlotte courtroom. “As a newcomer, I had no fear. I believed I could take on Nascar in its entirety. I felt as far as the sport it needed to be looked at through a new lens.”

The Core Dispute: Charter Agreements and Renewal Demands

At issue is the end of a 2016 deal where Nascar provided each team a franchise. This system mirrors other professional sports with independent franchises, like the NBA’s Hornets or the NFL’s Panthers. This deal was set to expire in 2024 when Nascar demanded charter membership renewals.

Jordan testified for about sixty minutes and left the court to pandemonium, with onlookers and reporters clamoring for a view or a picture of the sports legend.

Spearheading the Fight

Jordan’s 23XI is leading the full-court press along with another racing team for Nascar to overhaul a business model Jordan said is unlawful to maintain excessive control.

At issue for Jordan and Heather Gibbs, who testified before Jordan, are details from September 2024. Gibbs described a frantic and emotional period where the sanctioning body told teams they had to sign a contract extension. The document consists of 112 pages outlining team compensation and a guaranteed entry in Nascar-sponsored races.

Choosing Litigation

Jordan explained that his team and its ally decided their sole viable path was to decline to sign that extensive document and litigate the matter. The other 13 organizations agreed to the terms.

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

The Bottom Line: Victory

But in the end, the resistance against what he saw as a financially unsustainable model was mostly about the familiar goal for Jordan: Success.

“Hamlin persuaded me adding a third car improved our chances to win,” he said, sharing that he purchased another franchise late in 2024 for $28m despite the uncertainty. “So I dove in.”

Heather Gibbs’ Testimony

Heather Gibbs detailed her push for indefinite franchises, which she said a written letter to Nascar. She testified the pressure of the signature deadline was problematic.

She said, the team founder first attempted to call and talk Nascar out of forcing 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, “Whether I have 20 charters, I have 20. If I have 30, that’s the number.”