Michael Jordan Tells Court He Felt No Fear of Nascar in Antitrust Trial

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 alleged violations of competition laws.

Team Investment and a Competitive Drive

The owner disclosed operational insights of his 23XI team, saying he invested $40m of his personal wealth into the Nascar Cup series team co-founded with partner Polk and longtime driver Denny Hamlin.

“Someone had to step forward,” Jordan said in the Charlotte courtroom. “As a newcomer, I wasn’t afraid. I felt I could challenge Nascar in its entirety. I felt as far as the sport required examination from a different view.”

Central Issue: Franchise System and Contract Pressure

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 about sixty minutes and exited the courthouse to pandemonium, with fans and media clamoring for a view or a picture of the sports legend.

Leading the Legal Charge

Jordan’s 23XI 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.

For Jordan and and Heather Gibbs, who preceded Jordan, are details from last September. Gibbs described a frantic and emotional six hours where the sanctioning body told teams they had to sign a contract extension. The document consists of over a hundred pages detailing team compensation and a guaranteed spot in every race.

Choosing Litigation

Jordan said that 23XI and Front Row Motorsports concluded 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.

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

The Bottom Line: Winning

Ultimately, the resistance against what he saw as a unsustainable system 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 purchased another franchise last year for $28 million despite the uncertainty. “So I dove in.”

Heather Gibbs’ Testimony

Heather Gibbs detailed her request for permanent charters, which she said a formal letter to Nascar. She testified the timing 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 CEO Jim France declined the request.

“Don’t do this to us,” Heather Gibbs said Joe Gibbs told Nascar’s leadership. The response was, “If I wake up and I have 20 charters, that’s what I have. If I have 30, that’s the number.”