Michael Jordan Tells Court He Felt No Fear of Nascar in Antitrust Trial
The basketball icon, as he cordially introduced himself in a federal courtroom on Friday, stated that his drive to win and status as a newcomer motivated his push for 23XI Racing to confront Nascar over perceived violations of antitrust rules.
Financial Stakes and a Competitive Drive
The owner disclosed financial and corporate details of his racing venture, revealing he put in $40m of his personal wealth into the Nascar Cup series team launched with business partner Curtis Polk and driver Hamlin.
“It fell to someone to act,” Jordan said in the Charlotte courtroom. “I was a new person, I had no fear. I believed I could take on Nascar in its entirety. I felt as far as the sport it needed to be looked at from a different view.”
The Core Dispute: Franchise System and Contract Pressure
At issue is the end of a 2016 deal where Nascar provided each team a “charter”. This system mirrors other professional sports with separately owned franchises, like the Charlotte Hornets or the Carolina Panthers. This deal was due to end in 2024 when Nascar insisted on charter membership renewals.
Jordan was on the witness stand for about sixty minutes and left the court to a media frenzy, with onlookers and reporters vying for a glimpse or a picture of the global icon.
Leading the Legal Charge
23XI Racing is at the forefront of the push along with another racing team for Nascar to change a business model Jordan said is breaking the law to maintain excessive control.
At issue for Jordan and a fellow team representative, who testified before Jordan, are details from September 2024. She recounted a frantic and emotional six hours where the racing circuit informed teams they had to sign a charter agreement extension. This agreement spanned 112 pages outlining pay for chartered teams and a guaranteed spot in Nascar-sponsored races.
A Refusal to Sign
Jordan said that his team and its ally concluded their only feasible option was to decline to sign that extensive document and litigate the matter. The other 13 organizations agreed to the terms.
The team owners approached Nascar about possible changes or extension options. Nascar refused to engage, according to his testimony.
The Ultimate Motivation: Winning
Ultimately, the pushback against what he saw as a financially unsustainable model was mostly about the familiar goal for Jordan: Success.
“Hamlin persuaded me adding a third car boosted our odds of winning,” he testified, sharing that he purchased another franchise late in 2024 for $28m despite the uncertainty. “So I dove in.”
Account from the Gibbs Family
Heather Gibbs detailed her request for permanent charters, which she said a written letter to Nascar. She said 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 CEO Jim France declined the request.
“Please don’t force this on us,” Gibbs recounted Joe Gibbs told Nascar’s executives. She said France replied, “Whether I have 20 charters, I have 20. If there are 30, I have 30.”
