Michael Jordan Testifies in NASCAR Antitrust Lawsuit
NBA icon Michael Jordan took the stand on Friday in his ongoing antitrust lawsuit against NASCAR, shedding light on his motivations for pursuing legal action against a sport he has long admired.
“We needed someone to step up and confront the organization, so they would realize this is a serious issue for us,” Jordan explained. “I felt prepared to take on NASCAR. It was crucial for me to view the situation from a new angle.”
This eagerly awaited testimony came after an intense account from Heather Gibbs, daughter-in-law of race team owner Joe Gibbs, regarding a frantic six-hour window where teams were forced to decide whether to sign contract extensions or forfeit charters that guaranteed weekly earnings throughout NASCAR’s 38-race season.
“This was a document that no business could ever agree to,” Gibbs stated, revealing her position as a licensed real estate agent. “It felt like having a gun to my head. If I don’t sign, there’s nothing.”
Charters function similar to franchise models seen in other sports. In NASCAR, each chartered car is ensured a place in every race and a certain amount of prize money from the series. Implemented in 2016, intense discussions to make this charter system permanent dragged on for over two years, with teams desperately wanting revenue security.
When NASCAR opted not to make permanent changes and provided teams with a 112-page contract extension to sign in September 2024—with only six hours to decide—just two out of fifteen teams chose not to sign: 23XI and Front Row. Those two teams proceeded to file an antitrust lawsuit, claiming NASCAR engages in monopolistic practices. 23XI is co-owned by Jordan and Denny Hamlin, a three-time Daytona 500 champion, while Front Row is backed by fast-food entrepreneur Bob Jenkins.
Jordan revealed that, despite the uncertainty surrounding the situation, 23XI went ahead and acquired a third charter for a hefty $28 million in late 2024. “I’m sure they understand I aim to win,” he remarked. “Denny convinced me that adding another driver would boost our chances, and so I did.”
Reflecting on his experience, Jordan expressed frustration over NASCAR’s refusal to entertain discussions or potential modifications to the charter system, which he supports. When asked why 23XI did not sign the contract extension last fall, he laid out his reasons.
“First, I didn’t believe it was economically sensible. Second, it included a clause preventing us from suing NASCAR, which felt like an antitrust violation. And lastly, they presented 23XI with an ultimatum that just didn’t seem right,” Jordan explained.
“I was hoping for a partnership, yet a permanent charter wasn’t even considered. No one from NASCAR was willing to negotiate or compromise on the issues that mattered to us. They didn’t show any willingness to discuss those elements. So here we are.”
Jordan shared he holds 60% of 23XI and has invested between $35 million and $40 million into the team, which began competing in 2021. Jenkins recounted earlier in the week that the team had yet to turn a profit since its inception in the early 2000s and approximated losses totaling $100 million.
