Michael Jordan Testifies He ‘Wasn’t Afraid’ of Nascar in Antitrust Trial
The basketball icon, introducing himself formally in a Charlotte court on Friday, admitted that his drive to win and status as a newcomer emboldened his effort with 23XI Racing to “challenge” 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 $40m of his own funds into the Nascar Cup series team launched with business partner Curtis Polk and longtime driver Denny Hamlin.
“Someone had to step forward,” Jordan said during testimony. “As a newcomer, I had no fear. I felt I could challenge Nascar as a whole. From my perspective, the sport required examination through a new lens.”
Central Issue: Franchise System and Renewal Demands
At issue is the end of a 2016 agreement where Nascar provided each team a “charter”. This system mirrors other professional sports with independent franchises, like the NBA’s Hornets or the NFL’s Panthers. The agreement was due to end in 2024 when Nascar demanded teams renew their charters.
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 picture of the sports legend.
Spearheading the Fight
23XI Racing is at the forefront of the push along with Front Row Motorsports for Nascar to change a operating model Jordan contended is unlawful to maintain excessive control.
For Jordan and and a fellow team representative, who testified before Jordan, are details from September 2024. Gibbs described a frantic and emotional six hours where the sanctioning body informed teams they must sign a charter agreement extension. This agreement spanned 112 pages outlining pay for chartered teams and a guaranteed entry in every race.
Choosing Litigation
Jordan explained that his team and its ally concluded their sole viable path was to decline to sign that extensive document and litigate the matter. All other teams signed the agreement.
The team owners approached Nascar about possible changes or extension options. Nascar refused to engage, Jordan said.
The Bottom Line: Winning
But in the end, the resistance against what he saw as a financially unsustainable model was driven by the familiar goal for Jordan: Winning.
“Hamlin persuaded me getting a third driver 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.”
Account from the Gibbs Family
Gibbs described her push for indefinite franchises, submitted in a written letter to Nascar. She said the timing of the contract signing demand was problematic.
She said, the team founder first attempted 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, “Whether I have 20 charters, that’s what I have. If I have 30, I have 30.”