Michael Jordan Testifies He ‘Wasn’t Afraid’ of Nascar in Legal Battle

Michael Jeffrey Jordan, as he cordially introduced himself in a Charlotte court 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 competition laws.

Team Investment and a Competitive Drive

The owner disclosed financial and corporate details of his 23XI team, saying he put in $40m of his own funds into the Cup Series operation co-founded 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 felt I could challenge Nascar in its entirety. From my perspective, the sport it needed to be looked at through a new lens.”

The Core Dispute: Franchise System and Contract Pressure

At issue is the expiration of a 2016 deal where Nascar provided each team a “charter”. The concept is similar to other major leagues with separately owned franchises, such as the Charlotte Hornets or the Carolina Panthers. This deal was due to end in 2024 when Nascar demanded charter membership renewals.

Jordan was on the witness stand for about sixty minutes and left the court to pandemonium, with onlookers and reporters clamoring for a view or a photo of the global icon.

Leading the Legal Charge

23XI Racing is leading the full-court press along with another racing team for Nascar to change a business model Jordan said is unlawful to keep two hands on the wheel.

At issue for Jordan and a fellow team representative, who testified before Jordan, are details from September 2024. She recounted a frantic and emotional period where the racing circuit told teams they must sign a charter agreement extension. This agreement spanned 112 pages outlining team compensation and a guaranteed entry in every race.

Choosing Litigation

Jordan said that 23XI and Front Row Motorsports concluded their sole viable path was to decline to sign that 112-page package and take the issue to court. All other teams signed the agreement.

Jordan and co-owner Denny Hamlin reached out to Nascar about potential amendments or negotiations. Nascar refused to engage, Jordan said.

The Bottom Line: Winning

Ultimately, the pushback against what he saw as a financially unsustainable model was driven by the familiar goal for Jordan: Winning.

“Hamlin persuaded me getting a third driver improved our chances to win,” he testified, sharing that he purchased another franchise last year for $28 million amid the legal dispute. “So I dove in.”

Heather Gibbs’ Testimony

Heather Gibbs detailed her request for permanent charters, submitted in a formal letter to Nascar. She testified the pressure of the signature deadline was problematic.

She said, the team founder first attempted to call and talk Nascar out of forcing signatures, but CEO Jim France declined the request.

“Don’t do this to us,” Heather Gibbs said was the message to Nascar’s leadership. The response was, “Whether I have 20 charters, that’s what I have. If there are 30, I have 30.”