🔗 Share this article

The basketball icon, as he cordially introduced himself in a Charlotte court on Friday, stated that his competitive side and status as a newcomer motivated his push for 23XI Racing to “challenge” Nascar over alleged violations of antitrust rules.

Team Investment and a Competitive Drive

Jordan shared operational insights of his racing venture, saying he invested $40 million of his own funds into the Cup Series operation launched with business partner Curtis Polk and longtime driver Denny Hamlin.

“Someone had to step forward,” Jordan said 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 from a different view.”

The Core Dispute: Charter Agreements and Contract Pressure

The heart of the case involves the end of a 2016 deal where Nascar granted each team a “charter”. The concept is similar to other professional sports with separately owned franchises, like the Charlotte Hornets or the Carolina 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 fans and media vying for a view or a photo of the global icon.

Spearheading the Fight

Jordan’s 23XI is leading the full-court press along with Front Row Motorsports for Nascar to overhaul a business model Jordan said is unlawful to maintain excessive control.

For Jordan and and a fellow team representative, who testified before Jordan, are details from last September. She recounted a frantic and emotional six hours where the sanctioning body informed teams they must sign a charter agreement extension. This agreement consists of 112 pages outlining pay for chartered teams and a guaranteed spot in Nascar-sponsored races.

Choosing Litigation

Jordan said that his team and its ally decided their only feasible option was to refuse a signature that 112-page package and litigate the matter. All other teams signed the agreement.

Jordan and co-owner Denny Hamlin approached Nascar about potential amendments or extension options. Nascar wasn’t talking, Jordan said.

The Bottom Line: Victory

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

“Denny convinced me adding a third car improved our chances to win,” he testified, noting that he bought a third charter last year for $28m amid the legal dispute. “So I took the plunge.”

Heather Gibbs’ Testimony

Heather Gibbs detailed her request for permanent charters, which she said a written letter to Nascar. She said the pressure of the contract signing demand was problematic.

According to her, the team founder first attempted to call and persuade Nascar against forcing signatures, but CEO Jim France declined the request.

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