🔗 Share this article

Michael Jeffrey Jordan, introducing himself formally 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 antitrust rules.

Financial Stakes and a Will to Win

The owner disclosed financial and corporate details of his 23XI team, saying he invested $40m of his personal wealth into the Nascar Cup series team launched with business partner Curtis Polk and longtime driver Denny Hamlin.

“Someone had to step forward,” Jordan said during testimony. “As a newcomer, I wasn’t afraid. I believed I could take on Nascar as a whole. I felt as far as the sport required examination from a different view.”

Central Issue: Franchise System and Contract Pressure

At issue is the expiration of a 2016 deal where Nascar granted each team a franchise. This system mirrors other major leagues with independent franchises, like the NBA’s Hornets or the NFL’s Panthers. The agreement was due to end in 2024 when Nascar demanded 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 photo of the sports legend.

Spearheading the Fight

23XI Racing is at the forefront of the push along with another racing team for Nascar to overhaul a business model Jordan said is unlawful to keep two hands on the wheel.

For Jordan and and Heather Gibbs, who preceded Jordan, are details from September 2024. She recounted a frantic and emotional period where the racing circuit told teams they had to sign a charter agreement extension. This agreement consists of over a hundred pages outlining team compensation and a guaranteed entry in every race.

A Refusal to Sign

Jordan said that his team and its ally decided their sole viable path was to decline to sign that 112-page package and take the issue to court. The other 13 organizations signed the agreement.

Jordan and co-owner Denny Hamlin approached Nascar about possible changes or negotiations. Nascar refused to engage, according to his testimony.

The Ultimate Motivation: Winning

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

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

Account from the Gibbs Family

Gibbs described her request for permanent charters, which she said a written letter to Nascar. She testified the pressure of the signature deadline didn’t sit well.

She said, Joe Gibbs first attempted to call and persuade Nascar against demanding signatures, but Nascar’s leader 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, I have 20. If there are 30, that’s the number.”