🔗 Share this article

Michael Jeffrey Jordan, introducing himself formally in a federal courtroom on Friday, stated that his drive to win and status as a newcomer emboldened his push for 23XI Racing to confront Nascar over perceived violations of competition laws.

Team Investment 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 business partner Curtis Polk and longtime driver Denny Hamlin.

“Someone had to step forward,” Jordan said in the Charlotte courtroom. “I was a new person, I wasn’t afraid. I believed I could take on Nascar in its entirety. From my perspective, the sport required examination from a different view.”

The Core Dispute: Franchise System and Contract Pressure

The heart of the case involves the end of a 2016 deal where Nascar provided each team a “charter”. This system mirrors other major leagues with independent franchises, such as the Charlotte Hornets or the Carolina Panthers. The agreement was due to end in 2024 when Nascar insisted on charter membership renewals.

Jordan was on the witness stand for an hour and exited the courthouse to pandemonium, with onlookers and reporters vying for a glimpse or a picture of the global icon.

Leading the Legal Charge

23XI Racing is leading the full-court press along with Front Row Motorsports for Nascar to overhaul a operating model Jordan said is breaking the law to maintain excessive control.

At issue for Jordan and a fellow team representative, who preceded Jordan, are details from September 2024. Gibbs described a frantic and emotional period where the sanctioning body informed teams they must sign a contract extension. This agreement spanned 112 pages outlining pay for chartered teams and a guaranteed spot in every race.

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. All other teams agreed to the terms.

Jordan and co-owner Denny Hamlin reached out to Nascar about potential amendments or negotiations. Nascar wasn’t talking, according to his testimony.

The Ultimate Motivation: Winning

Ultimately, the resistance against what he saw as a financially unsustainable model was mostly about the familiar goal for Jordan: Winning.

“Denny convinced me adding a third car boosted our odds of winning,” he testified, noting that he purchased another franchise last year for $28 million despite the uncertainty. “So I took the plunge.”

Heather Gibbs’ Testimony

Gibbs described her request for permanent charters, submitted in a formal letter to Nascar. She said the timing of the signature deadline was problematic.

She said, Joe Gibbs first tried to call and persuade Nascar against forcing signatures, but CEO Jim France declined the request.

“Please don’t force this on 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 there are 30, I have 30.”