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The basketball icon, as he cordially introduced himself in a Charlotte court on Friday, admitted that his competitive side and novelty within the sport emboldened his push for 23XI Racing to confront Nascar over alleged violations of competition laws.

Team Investment and a Will to Win

The owner disclosed financial and corporate details of his racing venture, saying he put in $40 million of his personal wealth into the Cup Series operation launched with business partner Curtis Polk and driver Hamlin.

“It fell to someone to act,” Jordan said in the Charlotte courtroom. “As a newcomer, I had no fear. I felt I could challenge Nascar in its entirety. I felt as far as the sport it needed to be looked at through a new lens.”

Central Issue: Franchise System and Renewal Demands

At issue is the end of a 2016 agreement where Nascar granted each team a franchise. This system mirrors other professional sports with independent franchises, like the NBA’s Hornets or the NFL’s Panthers. This deal was due to end in 2024 when Nascar insisted on charter membership renewals.

Jordan was on the witness stand for about sixty minutes and left the court to a media frenzy, with onlookers and reporters vying for a view or a photo of the sports legend.

Leading the Legal Charge

Jordan’s 23XI is leading the full-court press along with another racing team for Nascar to change a operating model Jordan said is unlawful 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 informed teams they must sign a charter agreement extension. The document spanned over a hundred pages detailing pay for chartered teams and a guaranteed entry 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 112-page package and take the issue to court. The other 13 organizations signed the agreement.

Jordan and co-owner Denny Hamlin reached out to Nascar about possible changes or negotiations. Nascar wasn’t talking, Jordan said.

The Bottom Line: Victory

But in the end, the pushback against what he saw as a financially unsustainable model was mostly about the familiar goal for Jordan: Winning.

“Denny convinced me adding a third car boosted our odds of winning,” he said, sharing that he bought a third charter last year for $28m amid the legal dispute. “So I took the plunge.”

Account from the Gibbs Family

Gibbs described her request for permanent charters, submitted in a written letter to Nascar. She said the pressure of the signature deadline 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.

“Please don’t force this on us,” Gibbs recounted Joe Gibbs told Nascar’s executives. The response was, “If I wake up and I have 20 charters, I have 20. If there are 30, I have 30.”