🔗 Share this article

The basketball icon, introducing himself formally in a Charlotte court on Friday, stated that his drive to win and status as a newcomer emboldened his push for 23XI Racing to confront Nascar over perceived violations of competition laws.

Financial Stakes and a Will to Win

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

“Someone had to step forward,” Jordan said during testimony. “As a newcomer, I wasn’t afraid. I felt I could challenge Nascar as a whole. I felt as far as the sport required examination through a new lens.”

Central Issue: Franchise System and Contract Pressure

The heart of the case involves the expiration of a 2016 deal where Nascar provided each team a franchise. This system mirrors other major leagues with separately owned franchises, like the NBA’s Hornets or the NFL’s Panthers. This deal was due to end in 2024 when Nascar demanded charter membership renewals.

Jordan was on the witness stand for about sixty minutes and left the court to pandemonium, with fans and media clamoring for a glimpse or a photo of the global icon.

Spearheading the Fight

23XI Racing is leading the full-court press along with another racing team 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 preceded Jordan, are events from September 2024. Gibbs described a frantic and emotional period where the sanctioning body informed teams they had to sign a charter agreement extension. The document spanned 112 pages outlining team compensation and a guaranteed entry in every race.

Choosing Litigation

Jordan said that 23XI and Front Row Motorsports decided their only feasible option 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 negotiations. Nascar wasn’t talking, Jordan said.

The Ultimate Motivation: Victory

But in the end, the pushback against what he saw as a unsustainable system was mostly about the familiar goal for Jordan: Winning.

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

Heather Gibbs’ Testimony

Gibbs described her push for indefinite franchises, which she said a written letter to Nascar. She testified the timing of the signature deadline was problematic.

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