Michael Jeffrey Jordan, as he cordially introduced himself in a federal courtroom on Friday, admitted that his drive to win and novelty within the sport motivated his push for 23XI Racing to “challenge” Nascar over perceived violations of competition laws.
The owner disclosed financial and corporate details of his 23XI team, saying he invested $40m of his personal wealth into the Nascar Cup series team launched with business partner Curtis Polk and driver Hamlin.
“It fell to someone to act,” Jordan stated during testimony. “I was a new person, I had no fear. I felt I could challenge Nascar in its entirety. From my perspective, the sport required examination through a new lens.”
At issue is the expiration of a 2016 agreement where Nascar provided each team a franchise. The concept is similar to other major leagues with independent franchises, like the NBA’s Hornets or the NFL’s Panthers. The agreement was set to expire in 2024 when Nascar insisted on teams renew their charters.
Jordan testified for an hour and exited the courthouse to a media frenzy, with onlookers and reporters vying for a glimpse or a picture of the sports legend.
23XI Racing is at the forefront of the push along with Front Row Motorsports for Nascar to change a operating model Jordan contended is breaking the law to keep two hands on the wheel.
At issue for Jordan and a fellow team representative, who testified before Jordan, are details from September 2024. Gibbs described a hectic and tense period where the sanctioning body told teams they must sign a charter agreement extension. This agreement consists of 112 pages detailing pay for chartered teams and a guaranteed entry in every race.
Jordan said that his team and its ally concluded their only feasible option was to decline to sign that 112-page package and litigate the matter. All other teams signed the agreement.
The team owners approached Nascar about potential amendments or negotiations. Nascar wasn’t talking, Jordan said.
Ultimately, the pushback against what he saw as a financially unsustainable model was mostly about the familiar goal for Jordan: Success.
“Denny convinced me getting a third driver boosted our odds of winning,” he said, noting that he purchased another franchise last year for $28 million despite the uncertainty. “So I took the plunge.”
Heather Gibbs detailed her request for permanent charters, which she said a formal letter to Nascar. She said the pressure of the contract signing demand didn’t sit well.
She said, 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,” Gibbs recounted was the message to Nascar’s executives. The response was, “If I wake up and I have 20 charters, I have 20. If I have 30, I have 30.”
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