NBA legend Michael Jordan testified in an antitrust lawsuit against NASCAR on September 2024, shedding light on his motivations for taking legal action against the racing organization. Jordan, who co-owns the racing team 23XI Racing, expressed his concerns about the current state of the sport and the implications of its charter system.
During his testimony, Jordan emphasized the need for accountability within NASCAR. “Someone had to step forward and challenge the entity to understand that it is a real concern from our aspect,” he stated. He believes that NASCAR requires scrutiny from different perspectives to ensure a fair competitive environment.
Jordan’s appearance followed a dramatic account from Heather Gibbs, the daughter-in-law of race team owner Joe Gibbs. Gibbs described a troubling six-hour window in which race teams were pressured to sign a lengthy extension or risk losing valuable charters that guarantee revenue throughout NASCAR’s 38-race season. “The document was something in business you would never sign,” she explained, likening the pressure to being “like a gun to your head: If you don’t sign, you have nothing.”
The charter system, introduced in 2016, serves a similar purpose to franchise models in other sports. It guarantees each chartered car a place in every race, along with a defined payout. Over the years, teams have lobbied for the charters to be made permanent to provide more revenue stability.
When NASCAR declined to make the charters permanent and imposed a tight deadline for signing the extension, 23XI Racing and Front Row Motorsports were the only two out of 15 teams to refuse. Instead, they filed the antitrust lawsuit, claiming that NASCAR operates as a monopolistic entity.
Jordan revealed that 23XI Racing purchased a third charter for $28 million despite ongoing uncertainties. “I’m pretty sure they know I love to win,” he remarked, adding that co-owner and three-time Daytona 500 winner Denny Hamlin encouraged him to expand the team for better competitive chances.
In his testimony, Jordan articulated why 23XI opted not to sign the extension last fall. He cited three main reasons: the agreement was not economically viable, it contained a clause prohibiting lawsuits against NASCAR—which he deemed an antitrust violation—and the ultimatum presented to 23XI was unfair. “I wanted a partnership, and permanent charters wasn’t even a consideration,” he said, highlighting the lack of willingness from NASCAR to engage in meaningful negotiations.
Jordan holds a 60% stake in 23XI Racing and has invested between $35 million and $40 million in the team, which began competing in 2021. Meanwhile, Bob Jenkins, owner of Front Row Motorsports, testified that his team has yet to turn a profit since inception, estimating losses around $100 million.
The ongoing trial is expected to delve deeper into the allegations against NASCAR, as both teams seek to highlight the lack of options and fairness within the current racing framework.
This case not only affects the teams involved but could also have broader implications for the future of NASCAR and its competitive structure moving forward.
