🔗 Share this article

The basketball icon, introducing himself formally in a federal courtroom on Friday, admitted that his drive to win and novelty within the sport motivated his effort with 23XI Racing to “challenge” Nascar over perceived violations of competition laws.

Team Investment and a Competitive Drive

Jordan shared operational insights 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 driver Hamlin.

“It fell to someone to act,” Jordan stated in the Charlotte courtroom. “As a newcomer, I had no fear. I felt I could challenge Nascar in its entirety. I felt as far as the sport required examination through a new lens.”

Central Issue: Charter Agreements and Renewal Demands

The heart of the case involves the expiration of a 2016 deal where Nascar granted each team a “charter”. The concept is similar to other major leagues with independent franchises, such as the Charlotte Hornets or the Carolina Panthers. The agreement was due to end in 2024 when Nascar insisted on charter membership renewals.

Jordan was on the witness stand for an hour and left the court to pandemonium, with fans and media clamoring for a view or a photo of the sports legend.

Leading the Legal Charge

23XI Racing is leading the full-court press along with Front Row Motorsports for Nascar to overhaul a business model Jordan contended is breaking the law to maintain excessive control.

At issue for Jordan and a fellow team representative, who preceded Jordan, are details from September 2024. Gibbs described a frantic and emotional period where the sanctioning body told teams they had to sign a contract extension. The document consists of 112 pages outlining pay for chartered teams and a guaranteed spot in Nascar-sponsored races.

Choosing Litigation

Jordan explained that his team and its ally concluded their sole viable path was to decline to sign that extensive document and take the issue to court. The other 13 organizations agreed to the terms.

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

The Bottom Line: Victory

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

“Denny convinced me adding a third car boosted our odds of winning,” he said, noting that he purchased another franchise late in 2024 for $28m despite the uncertainty. “So I dove in.”

Account from the Gibbs Family

Heather Gibbs detailed her push for indefinite franchises, submitted in a written letter to Nascar. She said the timing of the signature deadline was problematic.

She said, Joe Gibbs first attempted 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 was the message to Nascar’s executives. The response was, “If I wake up and I have 20 charters, I have 20. If I have 30, that’s the number.”