Why is Michael Jordan suing NASCAR? Complete lawsuit drama explained as basketball legend testifies 

NASCAR Cup Series FireKeepers Casino 400 - Source: Getty
Michael Jordan at NASCAR Cup Series FireKeepers Casino 400 - Source: Getty

Michael Jordan surprised many sports fans when he stepped into a legal battle with NASCAR. The NBA legend is now at the center of a major antitrust lawsuit against the racing organization. Jordan testified in court and explained why he decided to take action against a sport he once supported as a fan.

Jordan is not suing alone. His racing team, 23XI Racing, which he co-owns with NASCAR driver Denny Hamlin, is leading the case along with Front Row Motorsports owned by Bob and Brad Jenkins. The lawsuit claims NASCAR controls the sport in unfair ways that hurt team owners.

During his testimony, Jordan said the decision was not easy. He made it clear that he did not want conflict but felt forced into the legal fight. His appearance in court brought national attention to the case.


What triggered the lawsuit against NASCAR?

NASCAR Cup Series Toyota/Save Mart 350 - Source: Getty
NASCAR Cup Series Toyota/Save Mart 350 - Source: Getty

The lawsuit began after NASCAR presented team owners with a new charter extension in September 2024. Teams were given only six hours to decide whether to sign the 112-page contract. If they refused, they risked losing their charters. Charters guarantee teams a spot in every race and weekly revenue.

Michael Jordan explained why he refused to sign:

"Someone had to step forward and challenge the entity to understand that it is a real concern from our aspect." He added, "I felt I could challenge NASCAR as a whole. I felt, as far as the sport, it needed to be looked at from a different view."

Heather Gibbs, the daughter-in-law of team owner Joe Gibbs, also testified. She described the pressure teams faced:

"The document was something in business you would never sign." She added, "It was like a gun to your head: If you don’t sign, you have nothing."

Her testimony supported claims that the process was rushed and unfair.

NASCAR refused to make charters permanent, even though team owners asked for stability. Jordan and his partners felt the deal offered no security. They also said NASCAR would not discuss changes or negotiate key concerns raised by the teams.

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Why Michael Jordan said the NASCAR deal was unfair?

Michael Jordan gave three clear reasons for refusing to sign the contract:

"One, I didn’t think it was economically viable. Two, it said you could not sue NASCAR. That was an antitrust violation, I felt." He finished with, "Three, they gave us an ultimatum I didn’t think was fair to 23XI."

Michael Jordan said he wanted a true partnership with NASCAR:

"I wanted a partnership, and permanent charters wasn’t even a consideration." He also said the teams’ main requests were ignored. "The pillars that the teams wanted, no one on the NASCAR side even negotiated or compromised. They were not even open-minded to welcome those conversations."

Despite the legal fight, Michael Jordan continues to invest in his team. He confirmed that 23XI bought a third charter in late 2024 for $28 million.

He said, "I’m pretty sure they know I love to win." He added, "Denny convinced me getting a third driver improved our chances to win, so I dove in."

Michael Jordan also revealed he owns 60% of 23XI and has invested between $35 million and $40 million into the team. Front Row Motorsports owner Bob Jenkins testified that he has not turned a profit since the early 2000s and estimates he has lost $100 million.

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Edited by Sarah Nazamuddin Harniswala