🔗 Share this article

The basketball icon, introducing himself formally in a federal courtroom on Friday, stated that his drive to win and status as a newcomer motivated his effort with 23XI Racing to “challenge” Nascar over alleged violations of antitrust rules.

Team Investment and a Will to Win

Jordan shared operational insights of his 23XI team, saying he put in $40m of his own funds into the Nascar Cup series team launched with business partner Curtis Polk and driver Hamlin.

“It fell to someone to act,” Jordan stated during testimony. “I was a new person, I had no fear. I believed I could take on 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

At issue is the expiration of a 2016 deal where Nascar provided each team a “charter”. This system mirrors other professional sports with independent franchises, like the Charlotte Hornets or the NFL’s Panthers. This deal was set to expire in 2024 when Nascar insisted on teams renew their charters.

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

Spearheading the Fight

Jordan’s 23XI is at the forefront of the push along with another racing team for Nascar to overhaul a operating model Jordan contended is unlawful to maintain excessive control.

At issue for Jordan and Heather Gibbs, who testified before Jordan, are details from last September. Gibbs described a frantic and emotional period where the racing circuit informed teams they must sign a contract extension. This agreement spanned 112 pages detailing pay for chartered teams and a guaranteed spot in Nascar-sponsored races.

Choosing Litigation

Jordan explained that his team and its ally decided their sole viable path was to refuse a signature that 112-page package and take the issue to court. All other teams agreed to the terms.

The team owners reached out to Nascar about potential amendments or extension options. Nascar refused to engage, according to his testimony.

The Bottom Line: Victory

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

“Denny convinced me getting a third driver improved our chances to win,” he said, noting that he bought a third charter last year for $28 million amid the legal dispute. “So I took the plunge.”

Heather Gibbs’ Testimony

Gibbs described her push for indefinite franchises, submitted in a formal letter to Nascar. She said the timing of the contract signing demand was problematic.

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

“Don’t do this to us,” Heather Gibbs said Joe Gibbs told Nascar’s leadership. The response was, “Whether I have 20 charters, that’s what I have. If there are 30, that’s the number.”