In a high-profile antitrust case, NBA legend Michael Jordan spoke out about his frustrations with NASCAR’s business practices. As a longtime fan of stock car racing, Jordan felt compelled to challenge NASCAR, claiming the current model undervalues the contributions of teams and drivers who risk their lives for the sport.
Jordan took the stand, drawing attention in the packed courtroom. He co-owns the team 23XI, and alongside Front Row Motorsports, they filed the lawsuit against NASCAR. He emphasized that someone needed to “step forward” and address the flaws in the system.
His statements came after significant testimony from Heather Gibbs, daughter-in-law of race team owner Joe Gibbs. She recounted a tense six-hour window in which teams were pressured to sign a new extension or lose their charters—the contracts that ensure a steady revenue stream throughout the season. Gibbs described the ultimatum as similar to having a “gun to your head.”
The charters, established in 2016, function like franchises in other sports, guaranteeing a spot in races and a share of the prize money for each team. For over two years, teams had been negotiating to make these charters permanent, but NASCAR refused to budge. Ultimately, 23XI and Front Row Motorsports declined to sign the extension and opted for legal action instead.
Jordan’s testimony highlighted the economic struggles faced by team owners. He pointed out that 23XI had recently purchased a third charter for $28 million, even amidst uncertainty. “I love to win,” he said, explaining how he was convinced that adding a third driver would enhance their competitive edge.
He also touched on the disparity between NASCAR’s revenue-sharing model and that of the NBA, which distributes nearly half its revenue to players. “The revenue split in NASCAR is much lower than what I’ve seen in other businesses,” he noted. He believes that NASCAR lacks a shared responsibility for both growth and loss among teams.
In a further reflection on the business, Jordan revealed that he has invested around $35 million to $40 million in 23XI. In contrast, Gibbs testified that his own team has never made a profit, facing estimated losses of $100 million despite past victories like the Daytona 500 in 2021.
The emotional weight of the testimony was palpable. Heather Gibbs shared her struggles following the sudden loss of her husband, who had been a key figure in their team. She recalled the frantic negotiations they underwent, emphasizing the fear of losing everything without permanent charters to secure their investment.
Gibbs highlighted the potential impact of these changes: “It’s vital for us to know that what we’ve invested in is secured.” Her testimony underscored the personal stakes involved, not just for the teams but for their families and legacies.
As this legal battle unfolds, it’s clear that the future of NASCAR and its business practices could be at a turning point. By stepping into this fight, figures like Jordan are risking their reputations, hoping to reshape a sport they love for the betterment of all involved.
This ongoing case has ignited conversations around the balance of power in professional sports, drawing attention from fans and analysts alike. With figures like Jordan advocating for change, the outcome may reshape how revenue and opportunities are shared across motorsport racing, influencing future generations of drivers and teams.
