🔗 Share this article

Michael Jeffrey Jordan, as he cordially introduced himself in a Charlotte court on Friday, admitted that his drive to win and novelty within the sport emboldened his effort with 23XI Racing to “challenge” Nascar over alleged violations of competition laws.

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 business partner Curtis Polk and longtime driver Denny Hamlin.

“It fell to someone to act,” Jordan said in the Charlotte courtroom. “I was a new person, I wasn’t afraid. I believed I could take on Nascar as a whole. From my perspective, the sport it needed to be looked at from a different view.”

The Core Dispute: Franchise System and Renewal Demands

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 NFL’s 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 a media frenzy, with onlookers and reporters clamoring for a glimpse or a picture of the global icon.

Leading the Legal Charge

Jordan’s 23XI is leading the full-court press along with another racing team for Nascar to overhaul a business model Jordan said is breaking the law to maintain excessive control.

For Jordan and and a fellow team representative, who testified before Jordan, are details from last September. Gibbs described a frantic and emotional six hours where the racing circuit told teams they must sign a charter agreement extension. The document spanned over a hundred pages outlining team compensation and a guaranteed spot in Nascar-sponsored races.

A Refusal to Sign

Jordan said that his team and its ally decided their only feasible option was to refuse a signature that 112-page package and take the issue to court. All other teams agreed to the terms.

Jordan and co-owner Denny Hamlin approached Nascar about potential amendments or extension options. Nascar wasn’t talking, Jordan said.

The Bottom Line: Victory

But in the end, 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 said, noting that he purchased another franchise last year for $28 million despite the uncertainty. “So I took the plunge.”

Account from the Gibbs Family

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

According to her, Joe Gibbs first attempted to call and persuade Nascar against forcing signatures, but CEO Jim France declined the request.

“Don’t do this to us,” Gibbs recounted was the message to Nascar’s executives. She said France replied, “Whether I have 20 charters, that’s what I have. If there are 30, that’s the number.”