Michael Jordan’s Testimony in NASCAR Antitrust Case

CHARLOTTE, N.C. — Retired NBA legend Michael Jordan recently made headlines as he attended a pivotal NASCAR antitrust trial. He expressed that, despite being a fan of the racing series since childhood, he felt compelled to take legal action for changes in the sport’s business model that impact teams and drivers. His testimony spanned about an hour and was delivered in a courtroom full of onlookers.

With his high profile, Jordan drew some sarcastic remarks from the judges and defense attorneys as he outlined why the racing team he co-owns, 23XI, decided to join Front Row Motorsports in challenging NASCAR.

“Someone really needed to step up and confront this organization,” he said softly to the jury. “I sat in meetings with long-time owners who’ve dealt with lots of challenges over the years in trying to create change. I may have been a newcomer, but I wasn’t intimidated. I believed I could take on NASCAR. I wanted to approach the sport from a new angle.”

His much-anticipated remarks came after testimony from Heather Gibbs, the daughter-in-law of race team owner Joe Gibbs. She described a hectic six-hour period when teams were pressured to sign extensions or forfeit charters that guaranteed revenue throughout NASCAR’s 38-race season.

“It was a document no business should ever have to sign,” Gibbs stated, comparing it to holding a gun to her head. “If I didn’t sign, I wouldn’t get anything.”

The charter system in NASCAR works similarly to franchises in other sports, providing each chartered car a secured spot in every race along with set income from the series. Established in 2016, this system became a topic of intense discussion during two years of negotiations, as teams pushed for a permanent charter for financial security.

When NASCAR refused to make the charters permanent and imposed a tight six-hour deadline to sign a lengthy extension agreement in September 2024, only 23XI and Front Row Motorsports chose not to comply. Instead, they filed an antitrust lawsuit, claiming NASCAR employs monopolistic practices. Jordan co-owns 23XI with three-time Daytona 500 champion Denny Hamlin, while Front Row is run by fast-food franchisor Bob Jenkins.

In his testimony, Jordan noted that even amid uncertainty, 23XI acquired a third charter for a hefty $28 million late in 2024.

“They know I’m eager to win,” the six-time NBA champion remarked. “Denny assured me that adding a third driver would boost our chances, so I decided to move ahead.”

Jordan also mentioned NASCAR’s unwillingness to discuss alternatives to the charter system, reflecting on why 23XI did not sign a contract extension the previous fall.

“First, I didn’t see it as financially feasible. Second, they told me I wouldn’t be able to sue NASCAR, which seemed like an antitrust issue. And third, I felt the ultimatum was unfair to 23XI,” he elaborated. “I wanted collaboration, but a permanent charter wasn’t presented as an option. The key points we were looking for were things NASCAR wasn’t even willing to negotiate on.”

He drew a comparison to the NBA’s business model, which shares roughly half its revenues with players, contrasting it with NASCAR’s minimal revenue sharing.

“The revenue share was considerably less than any business I’ve been part of. I didn’t expect to match basketball levels, but moving in that direction felt right,” he shared. “What I see missing in NASCAR is a shared commitment to both growth and risk.”

Owning 60% of 23XI, Jordan has reportedly invested between $35 million and $40 million into the team. Jenkins had earlier testified that he has never turned a profit since starting his NASCAR team in the early 2000s, estimating total losses around $100 million despite winning the 2021 Daytona 500.

Gibbs earlier recounted her journey to co-owning Joe Gibbs Racing on the night her son, Ty, clinched the 2022 NASCAR Xfinity Series title, the day after her husband, Coy, passed away unexpectedly.

Coy Gibbs had taken on a key leadership role at JGR after his brother JD’s death in 2019. Given the tragic circumstances, Heather took an active role in the team, particularly during charter extension negotiations.

Gibbs explained how NASCAR’s final offer arrived late on a Friday evening, with insufficient time to sign, and it failed to include a permanent charter, prompting her to testify about the turmoil within the organization at that moment.

“Everyone connected to Coy, JD, and JGR felt a lot of pressure from the rapid developments,” she told the jury. Her father-in-law tried to reach NASCAR president Jim France for a resolution but was left with no solution.

Worried about her 84-year-old father-in-law, Gibbs mentioned having to leave to take her son to a baseball game, but felt she couldn’t leave him alone. “I left him in the dark, listening to his blood sugar monitor beep,” she recounted. “Ultimately, we felt we had no choice but to sign; we couldn’t risk losing everything, despite the deal feeling unfair to the team.”

Joe Gibbs is recognized as a Hall of Fame NASCAR owner and NFL coach, having led the Washington Football Team to three Super Bowl victories while JGR has claimed five Cup Series titles. Operating with 450 employees and chartering four Cup cars, the team depends solely on external sponsorships and investors to stay operational as they prepare for their 35th season next year. Gibbs reiterated the need for a permanent charter to safeguard their investment in NASCAR.

“It’s vital for our team to secure our future so that nothing can jeopardize our investments,” she testified. “It has immense significance in both our history and future.”