The NBA legend Tells Court He ‘Wasn’t Afraid’ of Nascar in Legal Battle

Michael Jeffrey Jordan, introducing himself formally in a federal courtroom on Friday, admitted that his competitive side and novelty within the sport emboldened his push for 23XI Racing to confront Nascar over perceived violations of antitrust rules.

Financial Stakes 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 launched with partner Polk and driver Hamlin.

“It fell to someone to act,” Jordan stated in the Charlotte courtroom. “I was a new person, I had no fear. I believed I could take on Nascar as a whole. From my perspective, the sport required examination from a different view.”

Central Issue: Franchise System and Contract Pressure

At issue is the end of a 2016 deal where Nascar granted each team a franchise. This system mirrors other professional sports with separately owned franchises, like the NBA’s Hornets or the Carolina Panthers. This deal was due to end in 2024 when Nascar demanded charter membership renewals.

Jordan testified for an hour and left the court to pandemonium, with onlookers and reporters vying for a view or a photo of the sports legend.

Leading the Legal Charge

23XI Racing is leading the full-court press along with another racing team for Nascar to overhaul a operating model Jordan said is unlawful to keep two hands on the wheel.

At issue for Jordan and a fellow team representative, who preceded Jordan, are details from September 2024. Gibbs described a hectic and tense period where the sanctioning body told teams they must sign a contract extension. This agreement spanned over a hundred pages outlining pay for chartered teams and a guaranteed entry in Nascar-sponsored races.

Choosing Litigation

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. The other 13 organizations agreed to the terms.

The team owners approached Nascar about potential amendments or negotiations. Nascar refused to engage, according to his testimony.

The Ultimate Motivation: Victory

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 improved our chances to win,” he said, sharing that he purchased another franchise last year for $28m despite the uncertainty. “So I took the plunge.”

Heather Gibbs’ Testimony

Gibbs described her request for permanent charters, which she said a formal letter to Nascar. She said the timing of the contract signing demand didn’t sit well.

She said, the team founder first tried to call and talk Nascar out of forcing signatures, but CEO Jim France declined the request.

“Don’t do this to us,” Gibbs recounted was the message to Nascar’s leadership. The response was, “If I wake up and I have 20 charters, I have 20. If there are 30, that’s the number.”