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The basketball icon, introducing himself formally in a federal courtroom on Friday, admitted that his drive to win and novelty within the sport emboldened his effort with 23XI Racing to “challenge” Nascar over alleged violations of competition laws.

Financial Stakes and a Competitive Drive

The owner disclosed financial and corporate details of his 23XI team, revealing he invested $40 million of his own funds into the Nascar Cup series team co-founded with partner Polk and driver Hamlin.

“Someone had to step forward,” Jordan stated in the Charlotte courtroom. “I was a new person, I had no fear. I believed I could take on Nascar as a whole. I felt as far as the sport required examination through a new lens.”

Central Issue: Franchise System and Contract Pressure

At issue is the end of a 2016 deal where Nascar provided each team a “charter”. The concept is similar to other professional sports with independent franchises, like the Charlotte Hornets or the Carolina Panthers. The agreement was due to end in 2024 when Nascar insisted on charter membership renewals.

Jordan testified for an hour and left the court to pandemonium, with onlookers and reporters clamoring for a glimpse or a picture of the sports legend.

Leading the Legal Charge

23XI Racing is leading the full-court press along with another racing team for Nascar to overhaul a business model Jordan contended is breaking the law to maintain excessive control.

For Jordan and and a fellow team representative, who testified before Jordan, are events from September 2024. She recounted a hectic and tense six hours where the sanctioning body told teams they had to sign a contract extension. The document spanned 112 pages outlining pay for chartered teams and a guaranteed spot in Nascar-sponsored races.

Choosing Litigation

Jordan explained that 23XI and Front Row Motorsports decided their sole viable path was to decline to sign that extensive document and litigate the matter. All other teams agreed to the terms.

Jordan and co-owner Denny Hamlin approached Nascar about potential amendments or negotiations. Nascar refused to engage, Jordan said.

The Bottom Line: Winning

Ultimately, the pushback against what he saw as a unsustainable system was driven by the familiar goal for Jordan: Winning.

“Denny convinced me getting a third driver improved our chances to win,” he testified, sharing that he purchased another franchise late in 2024 for $28m despite the uncertainty. “So I took the plunge.”

Heather Gibbs’ Testimony

Heather Gibbs detailed her request for permanent charters, submitted in a formal letter to Nascar. She testified the pressure of the signature deadline didn’t sit well.

She said, the team founder first tried to call and persuade Nascar against forcing signatures, but Nascar’s leader declined the request.

“Please don’t force this on us,” Gibbs recounted Joe Gibbs told Nascar’s leadership. She said France replied, “If I wake up and I have 20 charters, that’s what I have. If there are 30, I have 30.”