Michael Jordan appeared in court on Friday to testify against NASCAR during an antitrust trial. The NBA legend, co-owner of the NASCAR team 23XI Racing alongside driver Denny Hamlin, voiced his criticisms about the company’s operational structure in a federal courthouse in North Carolina.

23XI and Front Row Motorsports have accused NASCAR of engaging in anticompetitive practices and chose not to renew their charter agreements for the upcoming season. They argue that NASCAR’s charters are monopolistic in nature and demand reform in the structure of the league’s business practices.

“Someone had to step forward and challenge the entity,” Jordan remarked to the jury. “I sat in those meetings with longtime owners who were brow-beaten for so many years trying to make change. I was a new person, I wasn’t afraid. I felt I could challenge NASCAR as a whole and that the sport needed a fresh perspective.”

The current charter system, akin to franchising practices seen in other American sports leagues, ensures race participation and associated revenues. 23XI and Front Row claim this revenue arrangement is untenable, alleging that the charter terms foster a monopolistic environment, which includes exclusive clauses that grant NASCAR profound control over significant aspects of the series.

During negotiations for renewing the charters, the teams requested that the charters be made permanent, but NASCAR declined their requests. Just six hours were allotted in September 2024 to sign the extensions, and 23XI and Front Row were the only teams that did not comply.

“One, I didn’t think it was economically viable,” Jordan explained concerning the refusal to sign. “Two, it stipulated that we could not sue NASCAR – which I viewed as an antitrust violation. Three, they presented us with an ultimatum that I found unjust towards 23XI.”

Jordan and Hamlin established 23XI in 2020 with Bubba Wallace as their inaugural driver, securing three full-time entries over the years. Instead of entering a seven-year renewal, they opted for legal action against NASCAR.

“I sought a partnership, yet permanent charters weren’t even on the table,” Jordan recalled. “The standards that the teams desired were met with absolute refusal from NASCAR’s side, leaving us in this position.”

Should 23XI and Front Row prevail in this trial, the implications for NASCAR could be severe, potentially resulting in compensatory damages and a significant overhaul of its business operations. Conversely, a court ruling in favor of NASCAR might lead the organization to seek new buyers for the charters that were not renewed.