🔗 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 emboldened his push for 23XI Racing to confront Nascar over alleged 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.

“It fell to someone to act,” Jordan stated during testimony. “I was a new person, I wasn’t afraid. I believed I could take on Nascar as a whole. I felt as far as the sport required examination through a new lens.”

Central Issue: Franchise System and Contract Pressure

At issue is the end of a 2016 deal where Nascar granted each team a “charter”. The concept is similar to other professional sports with independent franchises, like the Charlotte Hornets or the Carolina Panthers. The agreement was due to end in 2024 when Nascar insisted on charter membership renewals.

Jordan was on the witness stand for an hour and exited the courthouse to a media frenzy, with fans and media vying 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 change a operating model Jordan said is breaking the law to maintain excessive control.

For Jordan and and Heather Gibbs, who preceded Jordan, are events from last September. She recounted a frantic and emotional period where the racing circuit told teams they had to sign a contract extension. This agreement spanned 112 pages detailing pay for chartered teams and a guaranteed entry in every race.

A Refusal to Sign

Jordan explained that 23XI and Front Row Motorsports concluded their only feasible option was to decline to sign that 112-page package and litigate the matter. The other 13 organizations agreed to the terms.

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

The Ultimate Motivation: Victory

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

“Denny convinced me getting a third driver improved our chances to win,” he testified, sharing that he bought a third charter late in 2024 for $28m despite the uncertainty. “So I dove in.”

Heather Gibbs’ Testimony

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

According to her, Joe Gibbs first attempted to call and persuade Nascar against forcing signatures, but CEO Jim France refused the appeal.

“Don’t do this to us,” Heather Gibbs said was the message to Nascar’s leadership. The response was, “If I wake up and I have 20 charters, that’s what I have. If there are 30, I have 30.”