Michael Jordan Takes the Stand as NASCAR Antitrust Trial Enters Crucial Phase

Charlotte, NC – The Western District of North Carolina courtroom buzzed with anticipation Friday afternoon as NBA legend and co-owner of 23XI Racing, Michael Jordan, delivered his testimony, marking a pivotal moment in the antitrust lawsuit filed by 23XI Racing and Front Row Motorsports against NASCAR. The high-profile trial, which has spanned 15 months, entered its critical phase this week, with the focus squarely on whether NASCAR’s market power as the sole purchaser of premier stock car racing teams has been used to stifle competition and depress team revenues, particularly during the recent charter extension negotiations.

Jordan, a co-owner of 23XI Racing alongside Cup Series driver Denny Hamlin and longtime business associate Curtis Polk, is a central figure in the legal challenge against NASCAR and its CEO, Jim France. The core of the plaintiffs’ argument, and a finding already established by the court, is that NASCAR operates as a monopsony – essentially, a buyer’s monopoly. In this unique market structure, NASCAR holds exclusive control over the acquisition of top-tier racing teams. The jury’s task is to determine if this singular purchasing power was wielded in a manner that harmed competition and financially disadvantaged race teams.

The lawsuit stems from the contentious charter extension period, during which 13 out of 15 Cup Series teams eventually agreed to new terms after over two years of protracted negotiations. However, 23XI Racing and Front Row Motorsports, owned by Bob Jenkins, opted not to sign the extension. Jordan, in his testimony, articulated the rationale behind this decision, stating, "Someone had to step forward to challenge NASCAR."

During his hour on the witness stand, Jordan drew parallels between NASCAR’s operational model and the National Basketball Association (NBA), where he achieved unparalleled success as a player and later as an owner. He emphasized the NBA’s revenue-sharing model, which typically sees a closer to 50/50 split between the league and its teams, and a more equitable distribution of growth responsibilities. "If you share responsibility, the healthiness of the sport can grow," Jordan testified. "It needed to be looked at from a whole different perspective. That’s why we’re here."

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NASCAR’s defense, presented by attorney Lawrence Buterman, countered by highlighting the private ownership structure of the sanctioning body by the France family. They argued that NASCAR is distinct from traditional “stick-and-ball” leagues where teams often hold ownership stakes in the league itself. Jordan, however, dismissed this distinction, telling Buterman that such privately owned sports ventures are "rarely successful."

Jordan’s involvement in 23XI Racing began with Hamlin’s vision. Despite counsel from Polk, who has managed many of his business affairs for 35 years, warning that NASCAR presented "risky to (his) brand and image" and could lead to the loss of tens of millions of dollars, Jordan committed significant capital. He is the majority owner of 23XI Racing, having invested an estimated $35 to $40 million into the team. This investment underscores his deep commitment to the sport, a passion he has held since childhood.

The team’s initial projected profit was around $900,000. When questioned about whether the team had achieved a reasonable profit, Jordan responded affirmatively. He attributed the team’s financial success to professional management and the leverage of his star power. Nevertheless, he maintained that the current charter system is fundamentally unfair. Jordan admitted to entering NASCAR with optimism but found its economic model to be inherently inequitable as he became more immersed in its operations.

The escalating cost of charters presented another point of contention. Jordan explained his decision to purchase additional charters despite the ongoing dispute. The third charter cost $28 million, a significant increase from the $13.5 million for the second and the initial $4.7 million for the first. "There was a discussion between me and Denny about being successful… people who know me know I like to win and I will pursue anything to win and getting a third charter improves our chance to win the championship," Jordan stated. He described himself as "very invested" in the sport and saw the limited availability of charters as an opportunity, even as negotiations for the charter extension remained fraught with tension.

Jordan reiterated his hope for a more collaborative business model, envisioning a true partnership between NASCAR and its teams. "The thing I’m hoping for is you create more of a partnership between two entities," he said. "If that’s the case, it becomes a more valuable business. If you can ever compromise on the things that matter, you can grow your business."

NASCAR, throughout the week, has sought to portray Curtis Polk as an external force whose primary objective was to leverage the lawsuit for financial gain, rather than a genuine stakeholder in the sport’s growth. The defense presented discovered documents, including texts, suggesting Polk found NASCAR races "boring as shit" and painful to watch. Buterman emphasized to the jury that while Jordan and Hamlin are passionate racing enthusiasts, Polk’s perspective was purely transactional. When asked by Buterman if his longtime manager shared the same enthusiasm for racing as the other partners, Jordan conceded, "Obviously not."

Further evidence presented by NASCAR included a text message where Polk allegedly told Jordan, "our plan is to be a pest and have a mosquito bite every week," referring to the charter negotiations. His strategy, as suggested by the prosecution, involved leaking financial proposals to the media to exert pressure on NASCAR.

The trial continues, with both sides presenting their cases through testimony and documentary evidence. The jury’s eventual decision will have significant implications for the future structure and economic dynamics of NASCAR.