The basketball icon, as he cordially introduced himself in a federal courtroom on Friday, admitted that his drive to win and novelty within the sport motivated his effort with 23XI Racing to confront Nascar over perceived violations of antitrust rules.
The owner disclosed operational insights of his 23XI team, revealing he invested $40m of his own funds into the Nascar Cup series team launched with partner Polk and longtime driver Denny Hamlin.
“Someone had to step forward,” Jordan said during testimony. “As a newcomer, I wasn’t afraid. I felt I could challenge Nascar in its entirety. From my perspective, the sport required examination from a different view.”
At issue is the end of a 2016 deal where Nascar granted each team a franchise. The concept is similar to other major leagues with independent franchises, such as the NBA’s Hornets or the Carolina Panthers. The agreement was due to end in 2024 when Nascar insisted on teams renew their charters.
Jordan testified for about sixty minutes and exited the courthouse to pandemonium, with onlookers and reporters clamoring for a glimpse or a photo of the sports legend.
23XI Racing is at the forefront of the push along with another racing team for Nascar to change a operating model Jordan contended is unlawful to maintain excessive control.
At issue for Jordan and Heather Gibbs, who testified before Jordan, are details from last September. She recounted a frantic and emotional period where the sanctioning body informed teams they had to sign a contract extension. This agreement consists of over a hundred pages detailing pay for chartered teams and a guaranteed entry in every race.
Jordan said that his team and its ally decided their only feasible option was to refuse a signature that extensive document and take the issue to court. All other teams agreed to the terms.
The team owners approached Nascar about potential amendments or negotiations. Nascar wasn’t talking, according to his testimony.
But in the end, the resistance against what he saw as a unsustainable system was driven by the familiar goal for Jordan: Success.
“Hamlin persuaded me getting a third driver boosted our odds of winning,” he testified, sharing that he purchased another franchise last year for $28m amid the legal dispute. “So I dove in.”
Gibbs described her request for permanent charters, submitted in a written letter to Nascar. She testified the pressure of the signature deadline didn’t sit well.
According to her, Joe Gibbs first tried to call and talk Nascar out of demanding signatures, but CEO Jim France refused the appeal.
“Please don’t force this on us,” Gibbs recounted Joe Gibbs told Nascar’s executives. She said France replied, “Whether I have 20 charters, that’s what I have. If I have 30, that’s the number.”
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