🔗 Share this article

Michael Jeffrey Jordan, introducing himself formally in a Charlotte court on Friday, stated that his competitive side and status as a newcomer emboldened his push for 23XI Racing to confront Nascar over alleged violations of competition laws.

Financial Stakes and a Will to Win

The owner disclosed operational insights of his 23XI team, saying he put in $40m of his own funds into the Nascar Cup series team launched with business partner Curtis Polk and longtime driver Denny Hamlin.

“It fell to someone to act,” Jordan said during testimony. “As a newcomer, I wasn’t afraid. I believed I could take on Nascar in its entirety. I felt as far as the sport required examination through a new lens.”

The Core Dispute: Franchise System and Contract Pressure

At issue is the end of a 2016 deal where Nascar provided each team a franchise. The concept is similar to other major leagues with independent 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 exited the courthouse to pandemonium, with onlookers and reporters vying for a view or a photo of the sports legend.

Spearheading the Fight

23XI Racing is leading the full-court press along with another racing team for Nascar to change a operating model Jordan said is unlawful to maintain excessive control.

At issue for Jordan and Heather Gibbs, who preceded Jordan, are events from last September. She recounted a hectic and tense six hours where the racing circuit informed teams they must sign a charter agreement extension. This agreement spanned over a hundred pages outlining pay for chartered teams and a guaranteed spot in every race.

Choosing Litigation

Jordan explained that his team and its ally concluded their sole viable path was to decline to sign that 112-page package and take the issue to court. The other 13 organizations signed the agreement.

Jordan and co-owner Denny Hamlin approached Nascar about possible changes or extension options. Nascar refused to engage, Jordan said.

The Bottom Line: Victory

But in the end, the resistance against what he saw as a financially unsustainable model was driven by the usual bottom line for Jordan: Winning.

“Denny convinced me getting a third driver improved our chances to win,” he said, sharing that he bought a third charter late in 2024 for $28m despite the uncertainty. “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.

She said, the team founder first attempted to call and talk Nascar out of demanding signatures, but Nascar’s leader declined the request.

“Don’t do this to us,” Heather Gibbs said Joe Gibbs told 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.”