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The basketball icon, as he cordially introduced himself in a federal courtroom on Friday, stated that his drive to win and novelty within the sport motivated his push for 23XI Racing to “challenge” Nascar over perceived violations of competition laws.

Team Investment and a Will to Win

The owner disclosed operational insights of his 23XI team, saying he invested $40 million of his personal wealth into the Nascar Cup series team launched with business partner Curtis Polk and driver Hamlin.

“Someone had to step forward,” Jordan stated in the Charlotte courtroom. “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 from a different view.”

Central Issue: Franchise System and Contract Pressure

At issue is the end of a 2016 deal where Nascar granted each team a “charter”. The concept is similar to other professional sports with separately owned franchises, such as the Charlotte Hornets or the NFL’s Panthers. The agreement was due to end in 2024 when Nascar demanded teams renew their charters.

Jordan testified for about sixty minutes and exited the courthouse to a media frenzy, with onlookers and reporters clamoring for a glimpse or a photo 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 overhaul a business model Jordan contended is breaking the law to keep two hands on the wheel.

For Jordan and and a fellow team representative, who preceded Jordan, are details from last September. She recounted a frantic and emotional period where the racing circuit informed teams they had to sign a charter agreement extension. The document consists of over a hundred pages detailing pay for chartered teams and a guaranteed entry in every race.

Choosing Litigation

Jordan said that his team and its ally decided their only feasible option was to decline to sign that extensive document and litigate the matter. The other 13 organizations signed the agreement.

Jordan and co-owner Denny Hamlin approached Nascar about possible changes or negotiations. Nascar wasn’t talking, according to his testimony.

The Bottom Line: Winning

But in the end, the resistance against what he saw as a unsustainable system was driven by the usual bottom line for Jordan: Success.

“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 $28m amid the legal dispute. “So I dove in.”

Account from the Gibbs Family

Heather Gibbs detailed her push for indefinite franchises, submitted in a formal letter to Nascar. She said the timing of the signature deadline didn’t sit well.

She said, Joe Gibbs first attempted to call and talk Nascar out of demanding signatures, but Nascar’s leader declined the request.

“Please don’t force this on us,” Heather Gibbs said was the message to Nascar’s leadership. The response was, “If I wake up and I have 20 charters, I have 20. If I have 30, I have 30.”