🔗 Share this article

Michael Jeffrey Jordan, as he cordially introduced himself in a federal courtroom on Friday, admitted that his competitive side 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

The owner disclosed operational insights of his racing venture, saying he invested $40 million of his personal wealth into the Cup Series operation co-founded with business partner Curtis Polk and longtime driver Denny 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: Charter Agreements and Contract Pressure

At issue is the end of a 2016 deal where Nascar provided each team a franchise. The concept is similar to other major leagues with independent franchises, like the NBA’s Hornets or the Carolina Panthers. The agreement was due to end in 2024 when Nascar demanded teams renew their charters.

Jordan testified for about sixty minutes 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 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.

At issue for Jordan and Heather Gibbs, who preceded Jordan, are events from last September. She recounted a hectic and tense six hours where the racing circuit informed teams they must sign a charter agreement extension. This agreement spanned 112 pages detailing team compensation and a guaranteed entry in Nascar-sponsored races.

Choosing Litigation

Jordan said that 23XI and Front Row Motorsports concluded their sole viable path was to refuse a signature that 112-page package and litigate the matter. The other 13 organizations agreed to the terms.

The team owners reached out to Nascar about possible changes or negotiations. Nascar wasn’t talking, 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, sharing that he bought a third charter last year for $28m despite the uncertainty. “So I dove in.”

Account from the Gibbs Family

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

According to her, Joe Gibbs first attempted to call and persuade Nascar against forcing signatures, but CEO Jim France refused the appeal.

“Please don’t force this on us,” Heather Gibbs said Joe Gibbs told Nascar’s leadership. 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.”