🔗 Share this article

Michael Jeffrey Jordan, as he cordially introduced himself in a federal courtroom 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.

Team Investment and a Will to Win

The owner disclosed financial and corporate details of his racing venture, saying he invested $40m of his own funds into the Nascar Cup series team co-founded with partner Polk and longtime driver Denny Hamlin.

“Someone had to step forward,” Jordan stated during testimony. “I was a new person, I had no fear. I believed I could take on Nascar in its entirety. I felt as far as the sport it needed to be looked at from a different view.”

Central Issue: Franchise System and Renewal Demands

The heart of the case involves the expiration of a 2016 agreement where Nascar granted each team a franchise. This system mirrors other major leagues with independent franchises, like the Charlotte Hornets or the Carolina Panthers. This deal was set to expire in 2024 when Nascar insisted on teams renew their charters.

Jordan was on the witness stand for an hour and left the court to pandemonium, with fans and media vying for a glimpse or a photo of the sports legend.

Leading the Legal Charge

23XI Racing is at the forefront of the push along with Front Row Motorsports for Nascar to change a business model Jordan said is breaking the law to keep two hands on the wheel.

For Jordan and and Heather Gibbs, who preceded Jordan, are details from September 2024. Gibbs described a hectic and tense period where the racing circuit told teams they had to sign a charter agreement extension. The document consists of over a hundred pages detailing pay for chartered teams 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 112-page package and litigate the matter. All other teams agreed to the terms.

The team owners reached out to Nascar about potential amendments or extension options. Nascar wasn’t talking, Jordan said.

The Bottom Line: Winning

Ultimately, the resistance against what he saw as a financially unsustainable model was driven by the familiar goal for Jordan: Success.

“Denny convinced me getting a third driver improved our chances to win,” he said, sharing that he bought a third charter last year for $28 million despite the uncertainty. “So I dove in.”

Account from the Gibbs Family

Heather Gibbs detailed her request for permanent charters, submitted in a written letter to Nascar. She testified the timing of the signature deadline didn’t sit well.

She said, the team founder first attempted to call and talk Nascar out of demanding signatures, but Nascar’s leader declined the request.

“Please don’t force this on us,” Gibbs recounted Joe Gibbs told Nascar’s leadership. She said France replied, “Whether I have 20 charters, that’s what I have. If I have 30, that’s the number.”