🔗 Share this article

The basketball icon, as he cordially introduced himself in a federal courtroom on Friday, admitted that his drive to win and status as a newcomer motivated his push for 23XI Racing to “challenge” Nascar over alleged violations of antitrust rules.

Team Investment and a Will to Win

Jordan shared financial and corporate details of his racing venture, revealing he put in $40 million of his own funds into the Nascar Cup series team launched with business partner Curtis Polk and driver Hamlin.

“Someone had to step forward,” Jordan stated in the Charlotte courtroom. “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: Charter Agreements and Renewal Demands

At issue is the end of a 2016 agreement where Nascar granted each team a franchise. This system mirrors other professional sports with independent franchises, like the NBA’s Hornets or the NFL’s Panthers. The agreement was due to end in 2024 when Nascar insisted on teams renew their charters.

Jordan testified 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.

Spearheading the Fight

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

For Jordan and and Heather Gibbs, who testified before Jordan, are events from September 2024. Gibbs described a frantic and emotional six hours where the sanctioning body told teams they had to sign a contract extension. This agreement consists of over a hundred pages outlining pay for chartered teams and a guaranteed entry in every race.

Choosing Litigation

Jordan explained that his team and its ally concluded their only feasible option was to refuse a signature that 112-page package and litigate the matter. All other teams agreed to the terms.

The team owners reached out to Nascar about possible changes or negotiations. Nascar wasn’t talking, Jordan said.

The Bottom Line: Victory

But in the end, the pushback against what he saw as a financially unsustainable model was driven by the usual bottom line for Jordan: Winning.

“Hamlin persuaded me adding a third car boosted our odds of winning,” he said, sharing that he bought a third charter late in 2024 for $28m amid the legal dispute. “So I dove in.”

Heather Gibbs’ Testimony

Gibbs described her request for permanent charters, submitted in a written letter to Nascar. She testified the timing of the contract signing demand was problematic.

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

“Please don’t force this on us,” Gibbs recounted 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 there are 30, that’s the number.”