The NBA legend Tells Court He Felt No Fear of the Racing Body in Antitrust Trial
The basketball icon, as he cordially introduced himself in a federal courtroom on Friday, admitted that his competitive side and novelty within the sport motivated his effort with 23XI Racing to “challenge” Nascar over alleged violations of competition laws.
Financial Stakes and a Will to Win
Jordan shared operational insights of his racing venture, saying he put in $40m of his personal wealth into the Cup Series operation co-founded with partner Polk and longtime driver Denny Hamlin.
“It fell to someone to act,” Jordan stated during testimony. “As a newcomer, I had no fear. I felt I could challenge Nascar in its entirety. I felt as far as the sport required examination from a different view.”
The Core Dispute: Franchise System and Contract Pressure
The heart of the case involves the expiration of a 2016 agreement where Nascar granted each team a franchise. The concept is similar to other professional sports with independent franchises, like the NBA’s Hornets or the Carolina Panthers. The agreement was set to expire in 2024 when Nascar insisted on charter membership renewals.
Jordan was on the witness stand for an hour and left the court to pandemonium, with fans and media vying for a view or a picture of the sports legend.
Spearheading the Fight
23XI Racing is leading the full-court press along with Front Row Motorsports for Nascar to change a business model Jordan contended is unlawful to keep two hands on the wheel.
For Jordan and and a fellow team representative, who preceded Jordan, are details from September 2024. She recounted a frantic and emotional six hours where the sanctioning body informed teams they must sign a charter agreement extension. The document spanned over a hundred pages detailing team compensation and a guaranteed entry in every race.
A Refusal to Sign
Jordan explained that his team and its ally decided their only feasible option was to refuse a signature that 112-page package and litigate the matter. The other 13 organizations agreed to the terms.
Jordan and co-owner Denny Hamlin reached out to Nascar about possible changes or extension options. Nascar wasn’t talking, Jordan said.
The Bottom Line: Victory
Ultimately, the pushback against what he saw as a financially unsustainable model was driven by the familiar goal for Jordan: Winning.
“Denny convinced me adding a third car improved our chances to win,” he testified, sharing that he purchased another franchise late in 2024 for $28 million amid the legal dispute. “So I dove in.”
Heather Gibbs’ Testimony
Gibbs described her push for indefinite franchises, which she said a formal letter to Nascar. She testified the timing of the signature deadline was problematic.
According to her, Joe Gibbs first tried to call and talk Nascar out of forcing signatures, but CEO Jim France refused the appeal.
“Don’t do this to us,” Heather Gibbs said Joe Gibbs told Nascar’s executives. She said France replied, “If I wake up and I have 20 charters, that’s what I have. If I have 30, I have 30.”