Michael Jeffrey Jordan, as he cordially introduced himself to the federal courtroom in Charlotte on Friday, admitted it was his competitive side and novelty within the sport that emboldened a push for 23XI Racing to “challenge” NASCAR over what he perceived were violations of antitrust rules.
Jordan shared financial and corporate details of his 23XI team and said he invested $40 million of his own funds in the success of the NASCAR Cup series team launched along with business partner Curtis Polk and longtime driver Denny Hamlin.
“Someone had to step forward,” Jordan said Friday in the Charlotte, N.C., courtroom. “I was a new person, I wasn’t afraid. I felt I could challenge NASCAR as a whole. I felt as far as the sport, it needed to be looked at from a different view.”
At issue is the expiration of a 2016 agreement in which NASCAR made each racing team a “charter.” The concept is similar to other professional sports comprised of multiple, separately owned and operated franchises, such as the NBA’s Hornets and Panthers of the NFL in Charlotte. The agreement was set to expire in 2024 when NASCAR demanded charter membership renewals.
Jordan was on the witness stand for an hour and exited the courthouse to pandemonium with media and fans clamoring to get a view or snap a picture of the NBA legend. Jordan’s 23XI is leading the full-court press along with Front Row Motorsports for NASCAR to change a business model Jordan said is breaking the law to keep two hands on the wheel.
At issue for Jordan and Heather Gibbs, who preceded Jordan on the stand Friday, are details behind what the daughter-in-law of Joe Gibbs said was a frantic and emotional six hours in September 2024 in which the racing circuit told teams it must sign a charter agreement extension. The document consists of 112 pages detailing the pay for chartered team cars and a guarantee of an entry in NASCAR-sponsored races.
Jordan said 23XI and Front Row Motorsports decided instead their only feasible option was to refuse a signature on that 112-page package and litigate the matter. The other 13 organizations signed the agreement.
Jordan and co-owner Denny Hamlin approached NASCAR about possible changes, or extension options to discuss the matter. NASCAR wasn’t talking, Jordan said.
But in the end, the pushback against the financially unsustainable model was mostly about the usual bottom line for Jordan. Winning.
“Denny convinced me getting a third driver improved our chances to win,” he said Friday, sharing that he bought a third charter late in 2024 for $28 million despite the uncertainty at the time. “So I dove in.”
Heather Gibbs detailed her request for permanent charters, which she said came in the form of a written letter to NASCAR. She said the timing of the contract signing demand didn’t sit well. She said Joe Gibbs first tried to call and talk NASCAR out of forcing signatures on any agreement, but Heather Gibbs said CEO Jim France declined the request.
“Don’t do this to us,” Heather Gibbs said of what Joe Gibbs told NASCAR’s leadership. She said France replied, “If I wake up and I have 20 charters, I have 20. If I have 30, I have 30.”
–Field Level Media
