🔗 Share this article

The basketball icon, as he cordially introduced himself in a Charlotte court on Friday, stated that his competitive side and novelty within the sport emboldened his push for 23XI Racing to confront Nascar over alleged violations of antitrust rules.

Team Investment and a Competitive Drive

The owner disclosed operational insights of his 23XI team, revealing he put in $40 million 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 stated in the Charlotte courtroom. “As a newcomer, I wasn’t afraid. I believed I could take on Nascar in its entirety. I felt as far as the sport it needed to be looked at through a new lens.”

The Core Dispute: Charter Agreements and Renewal Demands

At issue is the end of a 2016 deal where Nascar provided each team a “charter”. The concept is similar to other professional sports with independent franchises, such as the Charlotte Hornets or the Carolina Panthers. This deal was due to end in 2024 when Nascar insisted on charter membership renewals.

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

Spearheading the Fight

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

At issue for Jordan and a fellow team representative, who testified before Jordan, are events from September 2024. Gibbs described a hectic and tense period where the sanctioning body told teams they had to sign a charter agreement extension. This agreement consists of over a hundred pages outlining team compensation and a guaranteed entry in every race.

Choosing Litigation

Jordan said that 23XI and Front Row Motorsports concluded their sole viable path was to decline to sign that extensive document and litigate the matter. The other 13 organizations signed the agreement.

Jordan and co-owner Denny Hamlin reached out to Nascar about possible changes or extension options. Nascar refused to engage, Jordan said.

The Bottom Line: Victory

Ultimately, the pushback against what he saw as a financially unsustainable model was mostly about the usual bottom line for Jordan: Success.

“Denny convinced me getting a third driver boosted our odds of winning,” he testified, sharing that he bought a third charter late in 2024 for $28m amid the legal dispute. “So I took the plunge.”

Account from the Gibbs Family

Gibbs described her push for indefinite franchises, submitted in a formal letter to Nascar. She testified the pressure of the signature deadline didn’t sit well.

According to her, Joe Gibbs first tried to call and persuade Nascar against demanding signatures, but Nascar’s leader refused the appeal.

“Don’t do this to us,” Heather Gibbs said Joe Gibbs told Nascar’s executives. She said France replied, “If I wake up and I have 20 charters, that’s what I have. If I have 30, I have 30.”