🔗 Share this article

The basketball icon, introducing himself formally in a federal courtroom on Friday, stated that his competitive side and status as a newcomer emboldened his push for 23XI Racing to confront Nascar over perceived violations of competition laws.

Team Investment 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 Nascar Cup series team launched with partner Polk and driver Hamlin.

“It fell to someone to act,” Jordan stated in the Charlotte courtroom. “I was a new person, I had no fear. I believed I could take on Nascar as a whole. I felt as far as the sport it needed to be looked at through a new lens.”

The Core Dispute: Charter Agreements and Contract Pressure

The heart of the case involves the end of a 2016 agreement where Nascar granted each team a “charter”. This system mirrors 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 demanded charter membership renewals.

Jordan was on the witness stand for about sixty minutes 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 at the forefront of the push along with another racing team for Nascar to overhaul 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 period where the racing circuit informed teams they must sign a contract extension. The document spanned 112 pages outlining team compensation and a guaranteed entry in every race.

Choosing Litigation

Jordan said that his team and its ally decided their sole viable path was to decline to sign that 112-page package and litigate the matter. The other 13 organizations agreed to the terms.

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

The Ultimate Motivation: Victory

But in the end, the pushback against what he saw as a financially unsustainable model was driven by the familiar goal for Jordan: Success.

“Denny convinced me adding a third car improved our chances to win,” he testified, sharing that he purchased another franchise last year for $28m despite the uncertainty. “So I took the plunge.”

Account from the Gibbs Family

Heather Gibbs detailed her request for permanent charters, which she said a formal letter to Nascar. She testified the pressure of the contract signing demand was problematic.

She said, Joe Gibbs first attempted to call and persuade Nascar against demanding signatures, but Nascar’s leader declined the request.

“Don’t do this to us,” Gibbs recounted was the message to Nascar’s executives. The response was, “Whether I have 20 charters, I have 20. If there are 30, I have 30.”