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NBA legend Michael Jordan testified in his antitrust lawsuit against NASCAR on Friday, revealing why he decided to take legal action against the sport he claims to be a fan of.
“Someone had to step forward and challenge the entity to understand that this is a real concern on our part,” Jordan said.
“I felt like I could challenge NASCAR as a whole. I felt like, as far as the sport goes, it needed to be looked at from a different perspective.”
Jordan’s long-awaited appearance followed dramatic testimony from Heather Gibbs, the daughter-in-law of racing team owner Joe Gibbs, about the chaotic six-hour period in which teams had to sign an extension or lose the rights that guarantee week-to-week revenue during NASCAR’s 38-race season.
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23XI Racing co-owners Michael Jordan, center, and Curtis Polk, left, watch during qualifying alongside 23XI Racing President Steve Lauletta, right, for a NASCAR Cup Series Championship auto race on Nov. 9, 2024, in Avondale, Arizona. (AP Photo/John Locher, File)
“The document was something that in business you would never sign,” said Heather Gibbs, also a licensed real estate agent. “It was like a gun was pointed at your head: if you don’t sign, you have nothing.”
Charters are the equivalent of the franchise model used in other sports. In NASCAR, it guarantees every rental car a spot in every race, plus a set payout from the series. The system was created in 2016, and during more than two years of bitter negotiations over an extension, teams pleaded for the renewable statutes to be made permanent for revenue stability.
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NBA Hall of Famer and 23XI Racing co-owner Michael Jordan during the NASCAR Cup Series FireKeepers Casino 400 at Michigan International Speedway on August 18, 2024, in Brooklyn, Michigan. (Logan Riely/Getty Images)
When NASCAR refused to make them permanent and gave teams six hours in September 2024 to sign the 112-page extension, 23XI and Front Row were the only two organizations out of 15 that refused. Instead, they filed the antitrust lawsuit and the trial began Monday to hear their accusations that NASCAR is a monopoly bully. 23XI is co-owned by Jordan and three-time Daytona 500 winner Denny Hamlin, and Front Row is owned by fast-food franchisor Bob Jenkins.
Jordan testified that 23XI purchased a third contract in late 2024 for $28 million, even with all the uncertainty.
“I’m pretty sure you know I love to win,” Jordan said. “Denny convinced me that getting a third driver improved our chances of winning, so I went for it.”
Like other witnesses this week, Jordan described a NASCAR that refused to discuss options or possible changes to the charter system, which he supports. He was asked why 23XI didn’t sign the extensions last fall.
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“First, I didn’t think it was economically viable. Second, it said you couldn’t sue NASCAR. I felt like that was an antitrust violation. Third, they gave us an ultimatum that I didn’t think was fair to 23XI,” Jordan said.
“I wanted a partnership, and permanent bylaws weren’t even a consideration. No one on the NASCAR side negotiated or committed to the pillars the teams wanted. They weren’t even open-minded to accept those conversations. So this is where we ended up.”
Jordan said he owns 60% of 23XI and has invested between $35 million and $40 million in the team, which fielded cars for the first time in 2021. Jenkins testified earlier this week that he has not made a profit since launching his team in the early 2000s and estimates he has lost $100 million.
