🔗 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 push for 23XI Racing to confront Nascar over perceived violations of competition laws.

Team Investment and a Competitive Drive

The owner disclosed financial and corporate details of his racing venture, saying he invested $40 million of his personal wealth into the Nascar Cup series team co-founded with partner Polk and longtime driver Denny Hamlin.

“It fell to someone to act,” Jordan said during testimony. “I was a new person, I had no fear. I felt I could challenge Nascar in its entirety. From my perspective, the sport it needed to be looked at through a new lens.”

Central Issue: Franchise System and Contract Pressure

At issue is the end of a 2016 deal where Nascar provided each team a franchise. The concept is similar to other professional sports with independent franchises, like the NBA’s Hornets or the NFL’s Panthers. The agreement was due to end in 2024 when Nascar insisted on teams renew their charters.

Jordan testified for an hour and exited the courthouse to a media frenzy, with fans and media clamoring for a view or a photo of the global icon.

Leading the Legal Charge

23XI Racing is leading the full-court press along with another racing team for Nascar to change a operating model Jordan contended is unlawful to keep two hands on the wheel.

For Jordan and and Heather Gibbs, who testified before Jordan, are details from September 2024. Gibbs described a frantic and emotional period where the sanctioning body informed teams they must sign a contract extension. This agreement spanned 112 pages outlining pay for chartered teams and a guaranteed spot in every race.

Choosing Litigation

Jordan explained that his team and its ally decided their only feasible option was to refuse a signature that 112-page package and litigate the matter. The other 13 organizations agreed to the terms.

Jordan and co-owner Denny Hamlin reached out to Nascar about potential amendments or extension options. Nascar wasn’t talking, according to his testimony.

The Bottom Line: Victory

Ultimately, the pushback against what he saw as a financially unsustainable model was mostly about the familiar goal for Jordan: Winning.

“Hamlin persuaded me adding a third car boosted our odds of winning,” he testified, sharing that he bought a third charter last year for $28m despite the uncertainty. “So I took the plunge.”

Account from the Gibbs Family

Heather Gibbs detailed her push for indefinite franchises, submitted in a formal letter to Nascar. She testified the timing of the contract signing demand was problematic.

She said, Joe Gibbs first tried to call and talk Nascar out of demanding signatures, but Nascar’s leader refused the appeal.

“Don’t do this to us,” Heather Gibbs said Joe Gibbs told Nascar’s executives. The response was, “Whether I have 20 charters, that’s what I have. If there are 30, I have 30.”