Michael Jordan Testifies in NASCAR Antitrust Trial, Advocates for Change

Michael Jordan, the iconic NBA player, took the stand in a pivotal NASCAR antitrust trial in Charlotte, North Carolina. Jordan, who co-owns the 23XI Racing team, expressed his concerns about the current NASCAR business model. He argued that it undermines the financial viability of teams and the safety of drivers.

Jordan’s Testimony Highlights Team Concerns

During his hour-long testimony, Jordan stated he has long been a fan of NASCAR. However, he felt compelled to challenge the system that shortchanges those involved in the sport. “Someone had to step forward and challenge the entity,” he said, emphasizing the need for a fresh perspective in NASCAR.

The trial follows intense testimony from Heather Gibbs, daughter-in-law of race team owner Joe Gibbs. She recounted the high-pressure scenario teams faced when extending their charters, which are critical to their revenue stability throughout the NASCAR season. “The document was something in business you would never sign,” she remarked about the charter extension agreement.

The Importance of Charters in NASCAR

NASCAR’s charter system, initiated in 2016, guarantees a spot in every race for chartered cars and a defined revenue payout. Teams were frustrated by NASCAR’s refusal to make charter agreements permanent, forcing them to sign a lengthy document in a mere six hours.

• NASCAR has 38 races each season.
• 23XI Racing, co-owned by Jordan and Denny Hamlin, currently holds two charters.
• In September 2024, they were asked to extend their charters without permanence.

Jordan highlighted that 23XI Racing purchased an additional charter for $28 million in late 2024, despite the uncertainty surrounding their investments. His rationale was straightforward: “Denny convinced me getting a third driver improved our chances to win.”

Concerns Over Revenue Sharing

In his testimony, Jordan compared NASCAR’s financial model unfavorably to the NBA, where players receive approximately 50% of revenue. “The revenue split was far less than any business I’ve ever been a part of,” he stated. He called for a more equitable sharing of profits and responsibilities within NASCAR.

Challenges Facing Teams

Jordan explained why 23XI Racing chose not to sign the charter extensions. He cited three main reasons: economic viability, a clause preventing legal action against NASCAR, and an unfair ultimatum offered to the teams. “I wanted a partnership, but permanent charters weren’t even a consideration,” he noted.

As the trial progresses, both Jordan and Gibbs emphasized that the current business environment is unsustainable for teams. Without changes, teams risk facing significant financial challenges.

Call for Industry Change

Jordan called upon NASCAR leadership to reassess their approach. He acknowledged the contributions of NASCAR while urging for reforms that would better support drivers and teams. “I’d like to give a little more credit to those who do” the dangerous work of racing, he stated. His testimony highlights the urgent need for change in NASCAR’s structure to ensure the future viability of teams and the safety of drivers.