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NBA legend Michael Jordan testified Friday in his antitrust lawsuit against NASCAR, revealing why he decided to take legal action against the sport he says he grew up 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, when it came to this sport, you had to look at it from a different perspective.”
Jordan’s highly anticipated appearance follows dramatic testimony from Heather Gibbs, the daughter-in-law of race team owner Joe Gibbs, about the chaotic six-hour period in which teams had to sign an extension or forfeit charters that guarantee week-to-week revenue throughout NASCAR’s 38-race season.
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Michael Jordan, center, and Curtis Polk, left, co-owners of 23XI Racing, look on during qualifying alongside 23XI Racing President Steve Lauletta, right, for a NASCAR Cup Series championship auto race on November 9, 2024, in Avondale, Arizona. (AP Photo/John Locher, file)
“The document was something you would never sign in the business world,” said Heather Gibbs, also a licensed real estate agent. “It was like a gun to your head: if you don’t sign, you get nothing.”
Charters are the equivalent of the franchise model used in other sports. In NASCAR, it guarantees each rented car a place in each race, as well as a set payout from the series. The system was created in 2016, and during two years of tough negotiations over an extension, teams requested that the renewable charters be made permanent to ensure revenue stability.
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NBA Hall of Famer and co-owner of 23XI Racing 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 to refuse. They filed an antitrust suit instead, and the trial opened Monday to hear their claims that NASCAR is a monopolistic tyrant. 23XI is co-owned by Jordan and three-time Daytona 500 winner Denny Hamlin, and Front Row is owned by fast-food franchiser Bob Jenkins.
Jordan testified that 23XI purchased a third charter in late 2024 for $28 million, even with all the uncertainty.
“I’m pretty sure they know I like to win,” Jordan said. “Denny convinced me that having a third driver improved our chances of winning, so I dove in.”
Like other witnesses this week, Jordan described a NASCAR that has refused to discuss options or potential changes to the charter system, which he supports. He was asked why 23XI didn’t sign extensions last fall.
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“First, I didn’t think it was economically viable. Second, it said you couldn’t sue NASCAR. It was a violation of antitrust laws, in my opinion. Third, they gave us an ultimatum that I didn’t think was fair to 23XI,” Jordan said.
“I wanted a partnership, and permanent charters weren’t even a consideration. The pillars that the teams wanted, no one on the NASCAR side even negotiated or compromised. They weren’t even open-minded to welcoming those conversations. So that’s where we ended up.”
Jordan said he owns 60% of 23XI and has invested between $35 million and $40 million in the team, which debuted cars in 2021. Jenkins testified earlier this week that he has made no profit since launching his team in the early 2000s and estimates he has lost $100 million.
