🔗 Share this article

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

Financial Stakes and a Competitive Drive

The owner disclosed operational insights of his 23XI team, revealing he invested $40m of his personal wealth into the Cup Series operation launched with partner Polk and longtime driver Denny Hamlin.

“It fell to someone to act,” Jordan said in the Charlotte courtroom. “I was a new person, I wasn’t afraid. I felt I could challenge Nascar as a whole. I felt as far as the sport it needed to be looked at from a different view.”

The Core Dispute: Franchise System and Renewal Demands

At issue is the end of a 2016 agreement where Nascar provided each team a franchise. The concept is similar to 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 teams renew their charters.

Jordan was on the witness stand for an hour and left the court to pandemonium, with onlookers and reporters clamoring for a view or a picture of the global icon.

Leading the Legal Charge

23XI Racing is at the forefront of the push along with another racing team for Nascar to overhaul a business model Jordan contended is breaking the law to keep two hands on the wheel.

At issue for Jordan and Heather Gibbs, who testified before Jordan, are details from September 2024. Gibbs described a hectic and tense six hours where the sanctioning body informed teams they had to sign a contract extension. The document spanned over a hundred pages detailing pay for chartered teams and a guaranteed entry in every race.

A Refusal to Sign

Jordan explained that his team and its ally decided their sole viable path was to refuse a signature that 112-page package and litigate the matter. All other teams agreed to the terms.

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

The Ultimate Motivation: Victory

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

“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.”

Heather Gibbs’ Testimony

Heather Gibbs detailed her request for permanent charters, submitted in a written letter to Nascar. She said the timing of the signature deadline was problematic.

She said, the team founder 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 leadership. The response was, “Whether I have 20 charters, I have 20. If there are 30, I have 30.”