🔗 Share this article

Michael Jeffrey Jordan, as he cordially introduced himself in a federal courtroom on Friday, admitted that his competitive side and novelty within the sport emboldened his push for 23XI Racing to “challenge” Nascar over perceived violations of antitrust rules.

Financial Stakes and a Will to Win

The owner disclosed financial and corporate details of his 23XI team, saying he put in $40m 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 said during testimony. “As a newcomer, I wasn’t afraid. I felt I could challenge Nascar in its entirety. I felt as far as the sport it needed to be looked at from a different view.”

The Core Dispute: Charter Agreements and Contract Pressure

At issue is the expiration of a 2016 agreement where Nascar provided each team a franchise. This system mirrors other professional sports with independent franchises, like the Charlotte Hornets or the NFL’s Panthers. The agreement was set to expire in 2024 when Nascar insisted on charter membership renewals.

Jordan testified for an hour and left the court to pandemonium, with onlookers and reporters clamoring for a view or a photo of the global icon.

Spearheading the Fight

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

At issue for Jordan and Heather Gibbs, who preceded Jordan, are events from last September. Gibbs described a frantic and emotional six hours where the sanctioning body informed teams they must sign a charter agreement extension. The document consists of 112 pages detailing team compensation and a guaranteed entry in Nascar-sponsored races.

A Refusal to Sign

Jordan said that his team and its ally concluded their only feasible option was to refuse a signature that extensive document and take the issue to court. All other teams agreed to the terms.

Jordan and co-owner Denny Hamlin reached out to Nascar about possible changes or extension options. 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: Success.

“Hamlin persuaded me getting a third driver improved our chances to win,” he testified, sharing that he bought a third charter last year for $28 million amid the legal dispute. “So I took the plunge.”

Account from the Gibbs Family

Gibbs described her request for permanent charters, submitted in a written letter to Nascar. She testified the timing of the signature deadline didn’t sit well.

She said, Joe Gibbs first tried 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 was the message to Nascar’s executives. The response was, “Whether I have 20 charters, I have 20. If there are 30, that’s the number.”