Michael Jordan Testifies He ‘Wasn’t Afraid’ of the Racing Body in Antitrust Trial
The basketball icon, as he cordially introduced himself in a Charlotte court on Friday, admitted that his drive to win and status as a newcomer emboldened his push for 23XI Racing to “challenge” Nascar over perceived violations of antitrust rules.
Team Investment and a Will to Win
The owner disclosed financial and corporate details of his racing venture, saying he invested $40 million of his personal wealth into the Nascar Cup series team co-founded with partner Polk and longtime driver Denny Hamlin.
“Someone had to step forward,” Jordan said 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 required examination through a new lens.”
Central Issue: Franchise System and Contract Pressure
At issue is the end of a 2016 deal where Nascar granted each team a “charter”. The concept is similar to other major leagues with independent franchises, such as the NBA’s Hornets or the Carolina Panthers. This deal was due to end in 2024 when Nascar demanded teams renew their charters.
Jordan was on the witness stand for an hour and exited the courthouse to a media frenzy, with onlookers and reporters vying for a view or a photo of the global icon.
Spearheading the Fight
23XI Racing is leading the full-court press along with Front Row Motorsports for Nascar to overhaul a business model Jordan said is breaking the law to maintain excessive control.
For Jordan and and a fellow team representative, who preceded Jordan, are details from September 2024. Gibbs described a frantic and emotional period where the racing circuit told teams they must sign a charter agreement extension. This agreement spanned 112 pages detailing pay for chartered teams and a guaranteed entry in every race.
Choosing Litigation
Jordan explained that his team and its ally decided their only feasible option was to refuse a signature that extensive document and take the issue to court. The other 13 organizations agreed to the terms.
Jordan and co-owner Denny Hamlin approached Nascar about possible changes or negotiations. Nascar wasn’t talking, according to his testimony.
The Bottom Line: Victory
Ultimately, the pushback 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 said, noting that he purchased another franchise late in 2024 for $28 million despite the uncertainty. “So I dove in.”
Account from the Gibbs Family
Gibbs described her push for indefinite franchises, submitted in a formal letter to Nascar. She testified the timing of the contract signing demand didn’t sit well.
According to her, the team founder first tried to call and talk Nascar out of demanding signatures, but Nascar’s leader refused the appeal.
“Please don’t force this on us,” Heather Gibbs said was the message to Nascar’s leadership. She said France replied, “If I wake up and I have 20 charters, I have 20. If there are 30, that’s the number.”