The NBA legend Tells Court He ‘Wasn’t Afraid’ of the Racing Body in Legal Battle
The basketball icon, as he cordially introduced himself in a federal courtroom on Friday, stated that his drive to win and status as a newcomer motivated his effort with 23XI Racing to “challenge” Nascar over alleged violations of antitrust rules.
Team Investment and a Will to Win
Jordan shared operational insights of his 23XI team, revealing he invested $40m of his own funds into the Nascar Cup series team co-founded 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 as a whole. 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 agreement where Nascar granted each team a franchise. The concept is similar to other professional sports with separately owned franchises, like the Charlotte 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 left the court to a media frenzy, with fans and media clamoring for a view or a picture of the global icon.
Leading the Legal Charge
23XI Racing is at the forefront of the push along with Front Row Motorsports for Nascar to change a operating model Jordan said is unlawful to maintain excessive control.
At issue for Jordan and a fellow team representative, who testified before Jordan, are details from September 2024. Gibbs described a hectic and tense six hours where the sanctioning body told teams they had to sign a contract extension. The document consists of over a hundred pages detailing pay for chartered teams and a guaranteed entry in every race.
A Refusal to Sign
Jordan said that his team and its ally decided their only feasible option was to decline to sign that extensive document and take the issue to court. All other teams signed the agreement.
Jordan and co-owner Denny Hamlin reached out to Nascar about possible changes or negotiations. Nascar wasn’t talking, according to his testimony.
The Bottom Line: Winning
But in the end, the pushback against what he saw as a unsustainable system was driven by the familiar goal for Jordan: Winning.
“Denny convinced 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 took the plunge.”
Heather Gibbs’ Testimony
Gibbs described her push for indefinite franchises, submitted in a written letter to Nascar. She testified the timing of the signature deadline didn’t sit well.
According to her, Joe Gibbs first attempted to call and persuade Nascar against forcing signatures, but CEO Jim France declined the request.
“Don’t do this to us,” Heather Gibbs said was the message to Nascar’s leadership. She said France replied, “Whether I have 20 charters, that’s what I have. If there are 30, that’s the number.”