🔗 Share this article

The basketball icon, as he cordially introduced himself in a federal courtroom on Friday, admitted that his competitive side and novelty within the sport motivated his effort with 23XI Racing to confront Nascar over alleged violations of competition laws.

Team Investment and a Competitive Drive

Jordan shared operational insights of his 23XI team, revealing he put in $40 million of his personal wealth 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 felt I could challenge Nascar in its entirety. From my perspective, the sport it needed to be looked at from a different view.”

Central Issue: Franchise System and Contract Pressure

The heart of the case involves the end of a 2016 deal where Nascar granted each team a “charter”. This system mirrors other professional sports with independent franchises, such as the Charlotte Hornets or the NFL’s 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 left the court to pandemonium, with onlookers and reporters vying for a view or a picture of the sports legend.

Spearheading the Fight

Jordan’s 23XI is at the forefront of the push along with Front Row Motorsports for Nascar to overhaul a business model Jordan contended is breaking the law to maintain excessive control.

For Jordan and and a fellow team representative, who preceded Jordan, are details from September 2024. She recounted a hectic and tense period where the sanctioning body informed teams they had to sign a charter agreement extension. This agreement spanned over a hundred pages outlining pay for chartered teams and a guaranteed spot in every race.

Choosing Litigation

Jordan said that 23XI and Front Row Motorsports concluded their only feasible option 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 approached Nascar about possible changes or negotiations. Nascar wasn’t talking, Jordan said.

The Bottom Line: Victory

But in the end, the resistance 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 testified, noting that he purchased another franchise late in 2024 for $28m amid the legal dispute. “So I dove in.”

Heather Gibbs’ Testimony

Heather Gibbs detailed her push for indefinite franchises, submitted in a formal letter to Nascar. She said the timing of the signature deadline didn’t sit well.

She said, Joe Gibbs first tried to call and talk Nascar out of forcing signatures, but Nascar’s leader declined the request.

“Please don’t force this on us,” Gibbs recounted Joe Gibbs told 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.”