Michael Jeffrey Jordan, introducing himself formally in a federal courtroom 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 antitrust rules.
The owner disclosed financial and corporate details of his 23XI team, revealing he invested $40 million of his own funds into the Cup Series operation launched with business partner Curtis Polk and longtime driver Denny Hamlin.
“It fell to someone to act,” Jordan said in the Charlotte courtroom. “I was a new person, I wasn’t afraid. I felt I could challenge Nascar as a whole. From my perspective, the sport it needed to be looked at through a new lens.”
At issue is the expiration of a 2016 deal where Nascar provided each team a “charter”. The concept is similar to other professional sports with separately owned franchises, such as the NBA’s Hornets or the NFL’s Panthers. The agreement was set to expire in 2024 when Nascar demanded teams renew their charters.
Jordan testified for an hour and left the court to pandemonium, with onlookers and reporters vying for a glimpse or a picture of the global icon.
Jordan’s 23XI is leading the full-court press along with Front Row Motorsports for Nascar to change a business model Jordan contended is unlawful to maintain excessive control.
For Jordan and and Heather Gibbs, who preceded Jordan, are details from September 2024. Gibbs described a hectic and tense six hours where the racing circuit told teams they had to sign a charter agreement extension. This agreement consists of 112 pages outlining team compensation and a guaranteed entry in Nascar-sponsored races.
Jordan explained that his team and its ally concluded their only feasible option was to refuse a signature that 112-page package and litigate the matter. The other 13 organizations signed the agreement.
The team owners approached Nascar about possible changes or negotiations. Nascar refused to engage, Jordan said.
Ultimately, the pushback against what he saw as a unsustainable system was driven by the familiar goal for Jordan: Success.
“Hamlin persuaded me getting a third driver boosted our odds of winning,” he said, noting that he purchased another franchise last year for $28m amid the legal dispute. “So I dove in.”
Gibbs described her request for permanent charters, submitted in a formal letter to Nascar. She said the pressure of the contract signing demand didn’t sit well.
According to her, Joe Gibbs first tried to call and persuade Nascar against 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 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.”
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