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The basketball icon, introducing himself formally in a Charlotte court on Friday, admitted that his competitive side and status as a newcomer emboldened his effort with 23XI Racing to “challenge” Nascar over perceived violations of competition laws.

Team Investment and a Will to Win

The owner disclosed financial and corporate details of his 23XI team, revealing he invested $40m of his personal wealth into the Nascar Cup series team co-founded with business partner Curtis Polk and longtime driver Denny Hamlin.

“It fell to someone to act,” Jordan stated during testimony. “As a newcomer, I wasn’t afraid. I believed I could take on Nascar as a whole. From my perspective, the sport it needed to be looked at through a new lens.”

Central Issue: Franchise System and Contract Pressure

The heart of the case involves the end of a 2016 agreement where Nascar granted each team a “charter”. The concept is similar to other professional sports with separately owned franchises, such as the NBA’s Hornets or the Carolina Panthers. This deal was set to expire in 2024 when Nascar insisted on charter membership renewals.

Jordan was on the witness stand for an hour and left the court to a media frenzy, with onlookers and reporters clamoring for a glimpse or a photo of the global icon.

Leading the Legal Charge

23XI Racing is leading the full-court press along with another racing team for Nascar to overhaul a operating model Jordan said is unlawful to maintain excessive control.

For Jordan and and Heather Gibbs, who preceded Jordan, are details from September 2024. She recounted a frantic and emotional six hours where the sanctioning body told teams they had to sign a charter agreement extension. The document spanned over a hundred pages outlining team compensation and a guaranteed spot in Nascar-sponsored races.

Choosing Litigation

Jordan explained that 23XI and Front Row Motorsports decided their only feasible option was to decline to sign that 112-page package and take the issue to court. All other teams signed the agreement.

The team owners approached Nascar about potential amendments or extension options. Nascar refused to engage, according to his testimony.

The Bottom Line: Winning

Ultimately, the resistance against what he saw as a unsustainable system was driven by the usual bottom line for Jordan: Winning.

“Denny convinced me getting a third driver improved our chances to win,” he said, noting that he bought a third charter late in 2024 for $28 million despite the uncertainty. “So I took the plunge.”

Heather Gibbs’ Testimony

Heather Gibbs detailed her request for permanent charters, which she said a written letter to Nascar. She said the pressure of the contract signing demand didn’t sit well.

According to her, the team founder first tried to call and persuade Nascar against demanding signatures, but CEO Jim France declined the request.

“Don’t do this to us,” Heather Gibbs said Joe Gibbs told Nascar’s executives. The response was, “Whether I have 20 charters, that’s what I have. If there are 30, that’s the number.”