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The basketball icon, as he cordially introduced himself in a federal courtroom on Friday, admitted that his drive to win and status as a newcomer motivated his effort with 23XI Racing to “challenge” Nascar over perceived violations of competition laws.

Team Investment and a Competitive Drive

The owner disclosed operational insights of his 23XI team, revealing he put in $40 million of his personal wealth into the Nascar Cup series team launched with partner Polk and longtime driver Denny Hamlin.

“It fell to someone to act,” Jordan said in the Charlotte courtroom. “As a newcomer, I wasn’t afraid. I felt I could challenge Nascar in its entirety. I felt as far as the sport required examination through a new lens.”

The Core Dispute: Charter Agreements and Contract Pressure

The heart of the case involves the end of a 2016 agreement where Nascar provided each team a “charter”. This system mirrors other major leagues with independent franchises, such as the NBA’s Hornets or the NFL’s Panthers. This deal was due to end in 2024 when Nascar insisted on teams renew their charters.

Jordan testified for about sixty minutes and left the court to pandemonium, with fans and media vying for a view 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 business model Jordan said is breaking the law to maintain excessive control.

For Jordan and and Heather Gibbs, who preceded Jordan, are events from September 2024. Gibbs described a frantic and emotional six hours where the racing circuit informed teams they had to sign a charter agreement extension. This agreement consists of 112 pages outlining pay for chartered teams and a guaranteed entry in Nascar-sponsored races.

A Refusal to Sign

Jordan said that his team and its ally decided their sole viable path was to refuse a signature that extensive document and take the issue to court. The other 13 organizations agreed to the terms.

The team owners reached out to Nascar about possible changes or extension options. Nascar wasn’t talking, according to his testimony.

The Bottom Line: Winning

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

“Denny convinced me getting a third driver boosted our odds of winning,” he testified, sharing that he bought a third charter late in 2024 for $28m amid the legal dispute. “So I took the plunge.”

Account from the Gibbs Family

Gibbs described her push for indefinite franchises, submitted in a formal letter to Nascar. She testified the pressure of the contract signing demand didn’t sit well.

According to her, the team founder first attempted to call and talk Nascar out of demanding signatures, but CEO Jim France declined the request.

“Don’t do this to us,” Gibbs recounted was the message to Nascar’s leadership. She said France replied, “Whether I have 20 charters, that’s what I have. If there are 30, that’s the number.”