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The basketball icon, introducing himself formally in a federal courtroom on Friday, stated that his competitive side and status as a newcomer emboldened his push for 23XI Racing to “challenge” Nascar over alleged violations of competition laws.

Team Investment and a Will to Win

Jordan shared operational insights of his racing venture, saying he put in $40m of his personal wealth into the Nascar Cup series team launched with business partner Curtis Polk and longtime driver Denny Hamlin.

“It fell to someone to act,” Jordan said during testimony. “I was a new person, I wasn’t afraid. I believed I could take on Nascar in its entirety. From my perspective, the sport it needed to be looked at through a new lens.”

The Core Dispute: Franchise System and Contract Pressure

The heart of the case involves the end of a 2016 deal where Nascar provided each team a franchise. This system mirrors other professional sports with independent franchises, like the Charlotte Hornets or the Carolina Panthers. The agreement was due to end in 2024 when Nascar demanded teams renew their charters.

Jordan testified for an hour and left the court to pandemonium, with onlookers and reporters vying for a glimpse or a picture of the global icon.

Leading the Legal Charge

Jordan’s 23XI is at the forefront of the push along with another racing team for Nascar to change a business model Jordan contended is breaking the law to keep two hands on the wheel.

For Jordan and and Heather Gibbs, who testified before Jordan, are details from September 2024. She recounted a frantic and emotional six hours where the sanctioning body informed teams they had to sign a charter agreement extension. This agreement consists of 112 pages detailing 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 only feasible option was to refuse a signature that extensive document and litigate the matter. All other teams signed the agreement.

The team owners reached out to Nascar about potential amendments or negotiations. Nascar refused to engage, Jordan said.

The Bottom Line: Winning

But in the end, the resistance 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 said, noting that he bought a third charter late in 2024 for $28m despite the uncertainty. “So I dove in.”

Heather Gibbs’ Testimony

Heather Gibbs detailed her push for indefinite franchises, submitted in a written letter to Nascar. She said the pressure of the signature deadline was problematic.

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

“Don’t do this to us,” Heather Gibbs said Joe Gibbs told Nascar’s leadership. She said France replied, “If I wake up and I have 20 charters, I have 20. If there are 30, that’s the number.”