🔗 Share this article

The basketball icon, introducing himself formally in a Charlotte court on Friday, admitted that his competitive side and status as a newcomer motivated his effort with 23XI Racing to confront Nascar over alleged violations of antitrust rules.

Team Investment and a Competitive Drive

The owner disclosed financial and corporate details of his 23XI team, saying he invested $40 million of his own funds 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 in the Charlotte courtroom. “I was a new person, I wasn’t afraid. I believed I could take on Nascar as a whole. From my perspective, the sport required examination from a different view.”

Central Issue: Charter Agreements and Contract Pressure

The heart of the case involves the expiration of a 2016 agreement where Nascar provided each team a “charter”. This system mirrors other professional sports with separately owned franchises, like the NBA’s Hornets or the Carolina Panthers. This deal was due to end in 2024 when Nascar insisted on charter membership renewals.

Jordan was on the witness stand for an hour 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 operating model Jordan said is breaking the law to maintain excessive control.

For Jordan and and Heather Gibbs, who testified before Jordan, are events from last September. Gibbs described a frantic and emotional period where the racing circuit informed teams they must sign a contract extension. The document spanned over a hundred pages outlining team compensation and a guaranteed entry in every race.

A Refusal to Sign

Jordan explained that 23XI and Front Row Motorsports decided their sole viable path was to decline to sign that extensive document and litigate the matter. The other 13 organizations signed the agreement.

Jordan and co-owner Denny Hamlin reached out to Nascar about potential amendments or negotiations. Nascar refused to engage, according to his testimony.

The Bottom Line: Winning

Ultimately, the pushback against what he saw as a unsustainable system was driven by the familiar goal for Jordan: Success.

“Hamlin persuaded me adding a third car boosted our odds of winning,” he testified, sharing that he purchased another franchise late in 2024 for $28m amid the legal dispute. “So I took the plunge.”

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.

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

“Please don’t force this on us,” Heather Gibbs said Joe Gibbs told Nascar’s executives. The response was, “Whether I have 20 charters, I have 20. If there are 30, that’s the number.”