🔗 Share this article

The basketball icon, introducing himself formally in a federal courtroom on Friday, admitted that his competitive side and status as a newcomer emboldened his effort with 23XI Racing to “challenge” Nascar over perceived violations of antitrust rules.

Financial Stakes and a Will to Win

The owner disclosed operational insights of his 23XI team, saying he put in $40 million of his own funds into the Cup Series operation co-founded with partner Polk and driver Hamlin.

“Someone had to step forward,” Jordan stated during testimony. “As a newcomer, I wasn’t afraid. I believed I could take on Nascar as a whole. From my perspective, the sport required examination through a new lens.”

Central Issue: Charter Agreements and Renewal Demands

The heart of the case involves the expiration of a 2016 agreement where Nascar provided each team a franchise. The concept is similar to other professional sports with separately owned franchises, like the NBA’s Hornets or the Carolina Panthers. The agreement was set to expire in 2024 when Nascar insisted on teams renew their charters.

Jordan testified for an hour and exited the courthouse to a media frenzy, with onlookers and reporters clamoring for a glimpse or a photo of the sports legend.

Leading the Legal Charge

Jordan’s 23XI is leading the full-court press along with another racing team for Nascar to overhaul a business model Jordan contended is breaking the law to keep two hands on the wheel.

For Jordan and and a fellow team representative, who testified before Jordan, are details from last September. Gibbs described a frantic and emotional six hours where the sanctioning body informed teams they had to sign a charter agreement extension. The document spanned 112 pages detailing pay for chartered teams and a guaranteed spot in every race.

A Refusal to Sign

Jordan said that 23XI and Front Row Motorsports concluded their only feasible option was to refuse a signature that 112-page package and litigate the matter. The other 13 organizations signed the agreement.

Jordan and co-owner Denny Hamlin approached Nascar about possible changes or negotiations. Nascar wasn’t talking, Jordan said.

The Bottom Line: Winning

Ultimately, the resistance against what he saw as a financially unsustainable model was driven by the familiar goal for Jordan: Winning.

“Hamlin persuaded me getting a third driver improved our chances to win,” he testified, sharing that he bought a third charter late in 2024 for $28 million amid the legal dispute. “So I took the plunge.”

Heather Gibbs’ Testimony

Heather Gibbs detailed her push for indefinite franchises, which she said a written letter to Nascar. She testified the timing of the contract signing demand didn’t sit well.

She said, the team founder first tried to call and persuade Nascar against forcing signatures, but CEO Jim France refused the appeal.

“Don’t do this to us,” Gibbs recounted was the message to Nascar’s executives. The response was, “If I wake up and I have 20 charters, I have 20. If I have 30, that’s the number.”