Michael Jeffrey Jordan, as he cordially introduced himself in a Charlotte court on Friday, stated that his drive to win and novelty within the sport emboldened his push for 23XI Racing to confront Nascar over perceived violations of competition laws.
The owner disclosed financial and corporate details of his 23XI team, saying he put in $40m of his personal wealth into the Cup Series operation launched with business partner Curtis Polk and longtime driver Denny Hamlin.
“It fell to someone to act,” Jordan said during testimony. “I was a new person, I had no fear. I believed I could take on Nascar as a whole. I felt as far as the sport required examination through a new lens.”
The heart of the case involves the end of a 2016 deal where Nascar granted each team a “charter”. This system mirrors other professional sports with independent franchises, such as the Charlotte Hornets or the NFL’s Panthers. The agreement was due to end in 2024 when Nascar demanded teams renew their charters.
Jordan was on the witness stand for about sixty minutes and exited the courthouse to pandemonium, with onlookers and reporters vying for a view or a photo of the sports legend.
Jordan’s 23XI is leading the full-court press along with Front Row Motorsports for Nascar to change a operating model Jordan said is unlawful to maintain excessive control.
At issue for Jordan and a fellow team representative, who testified before Jordan, are events from last September. Gibbs described a hectic and tense period where the racing circuit told teams they must sign a contract extension. The document consists of 112 pages outlining pay for chartered teams and a guaranteed entry in Nascar-sponsored races.
Jordan said that his team and its ally decided their sole viable path was to refuse a signature that extensive document and take the issue to court. The other 13 organizations agreed to the terms.
The team owners reached out to Nascar about possible changes or extension options. Nascar wasn’t talking, Jordan said.
Ultimately, the pushback against what he saw as a unsustainable system was driven by the familiar goal for Jordan: Success.
“Denny convinced me getting a third driver improved our chances to win,” he testified, noting that he purchased another franchise last year for $28 million despite the uncertainty. “So I dove in.”
Heather Gibbs detailed her push for indefinite franchises, submitted in a written letter to Nascar. She said the pressure of the contract signing demand didn’t sit well.
According to her, Joe Gibbs first tried to call and talk Nascar out of forcing signatures, but CEO Jim France refused the appeal.
“Please don’t force this on us,” Heather Gibbs said Joe Gibbs told Nascar’s leadership. The response was, “Whether I have 20 charters, that’s what I have. If there are 30, that’s the number.”
