🔗 Share this article

The basketball icon, as he cordially introduced himself in a Charlotte court on Friday, admitted that his competitive side and novelty within the sport motivated his push for 23XI Racing to “challenge” Nascar over perceived 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 $40 million 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 stated in the Charlotte courtroom. “I was a new person, I wasn’t afraid. I believed I could take on Nascar as a whole. From my perspective, the sport it needed to be looked at through a new lens.”

The Core Dispute: Franchise System and Renewal Demands

At issue is the end of a 2016 agreement where Nascar granted each team a “charter”. The concept is similar to other major leagues with separately owned franchises, like the NBA’s Hornets or the Carolina Panthers. The agreement was set to expire in 2024 when Nascar demanded teams renew their charters.

Jordan testified for an hour and exited the courthouse to a media frenzy, with fans and media vying for a glimpse 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 contended is breaking the law to keep two hands on the wheel.

At issue for Jordan and Heather Gibbs, who preceded Jordan, are events from last September. Gibbs described a frantic and emotional period where the sanctioning body told teams they had to sign a contract extension. The document consists of 112 pages detailing team compensation and a guaranteed entry in every race.

A Refusal to Sign

Jordan said that his team and its ally decided their sole viable path was to decline to sign that extensive document and take the issue to court. All other teams agreed to the terms.

Jordan and co-owner Denny Hamlin approached Nascar about potential amendments or negotiations. Nascar wasn’t talking, Jordan said.

The Bottom Line: Winning

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, sharing that he purchased another franchise last year for $28m amid the legal dispute. “So I dove in.”

Heather Gibbs’ Testimony

Heather Gibbs detailed her push for indefinite franchises, submitted in a written letter to Nascar. She testified the pressure of the contract signing demand didn’t sit well.

According to her, the team founder first attempted to call and persuade Nascar against demanding signatures, but CEO Jim France refused the appeal.

“Don’t do this to us,” Gibbs recounted 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 I have 30, I have 30.”