🔗 Share this article

The basketball icon, as he cordially introduced himself in a Charlotte court on Friday, admitted that his competitive side and novelty within the sport motivated his effort with 23XI Racing to “challenge” Nascar over alleged violations of competition laws.

Financial Stakes and a Will to Win

Jordan shared operational insights of his 23XI team, saying he invested $40 million of his own funds into the Cup Series operation launched 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 believed I could take on Nascar as a whole. From my perspective, the sport it needed to be looked at through a new lens.”

The Core Dispute: Franchise System and Renewal Demands

At issue is the end of a 2016 agreement where Nascar granted each team a “charter”. The concept is similar to other professional sports with separately owned franchises, such as the Charlotte Hornets or the Carolina Panthers. The agreement was due to end in 2024 when Nascar demanded charter membership renewals.

Jordan testified for about sixty minutes and exited the courthouse to a media frenzy, with onlookers and reporters vying for a view or a picture of the sports legend.

Leading the Legal Charge

Jordan’s 23XI is at the forefront of the push along with another racing team for Nascar to overhaul a business 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 last September. She recounted a frantic and emotional period where the racing circuit informed teams they must sign a contract extension. The document consists of 112 pages outlining pay for chartered teams and a guaranteed entry in every race.

A Refusal to Sign

Jordan said that 23XI and Front Row Motorsports concluded their sole viable path was to decline to sign that 112-page package and litigate the matter. The other 13 organizations agreed to the terms.

The team owners reached out to Nascar about possible changes or negotiations. Nascar refused to engage, Jordan said.

The Bottom Line: Winning

But in the end, the pushback against what he saw as a financially unsustainable model was driven by the usual bottom line for Jordan: Winning.

“Denny convinced me adding a third car improved our chances to win,” he testified, sharing that he purchased another franchise last year for $28m 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 pressure of the signature deadline didn’t sit well.

According to her, Joe Gibbs first tried to call and talk Nascar out of forcing signatures, but CEO Jim France 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 there are 30, I have 30.”