The basketball icon, introducing himself formally in a federal courtroom on Friday, admitted that his competitive side and status as a newcomer emboldened his push for 23XI Racing to “challenge” Nascar over perceived violations of antitrust rules.
The owner disclosed financial and corporate details of his 23XI team, saying he put in $40 million of his own funds into the Cup Series operation launched with business partner Curtis Polk and longtime driver Denny Hamlin.
“It fell to someone to act,” Jordan said during testimony. “I was a new person, I wasn’t afraid. I believed I could take on Nascar in its entirety. From my perspective, the sport it needed to be looked at through a new lens.”
At issue is the expiration of a 2016 deal where Nascar granted each team a franchise. The concept is similar to other professional sports with independent franchises, such as the NBA’s Hornets or the NFL’s Panthers. The agreement was due to end in 2024 when Nascar demanded charter membership renewals.
Jordan testified for an hour and exited the courthouse to a media frenzy, with fans and media clamoring for a glimpse or a picture of the global icon.
Jordan’s 23XI is leading the full-court press along with Front Row Motorsports for Nascar to change a business model Jordan said is unlawful to maintain excessive control.
At issue for Jordan and a fellow team representative, who testified before Jordan, are events from last September. Gibbs described a hectic and tense period where the racing circuit informed teams they must sign a charter agreement extension. The document consists of over a hundred pages outlining team compensation and a guaranteed spot in Nascar-sponsored races.
Jordan said that 23XI and Front Row Motorsports concluded their only feasible option was to decline to sign that 112-page package and take the issue to court. All other teams signed the agreement.
The team owners reached out to Nascar about possible changes or extension options. Nascar refused to engage, according to his testimony.
But in the end, the resistance against what he saw as a unsustainable system was mostly about the usual bottom line for Jordan: Winning.
“Hamlin persuaded me getting a third driver boosted our odds of winning,” he testified, sharing that he purchased another franchise late in 2024 for $28 million amid the legal dispute. “So I took the plunge.”
Heather Gibbs detailed her request for permanent charters, submitted in a written letter to Nascar. She testified the timing of the contract signing demand didn’t sit well.
According to her, Joe Gibbs first tried to call and talk Nascar out of forcing signatures, but Nascar’s leader refused the appeal.
“Please don’t force this on us,” Heather Gibbs said was the message to Nascar’s executives. The response was, “If I wake up and I have 20 charters, that’s what I have. If there are 30, that’s the number.”
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