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The basketball icon, introducing himself formally in a federal courtroom on Friday, stated that his drive to win and novelty within the sport motivated his effort with 23XI Racing to “challenge” Nascar over alleged violations of competition laws.

Team Investment and a Will to Win

Jordan shared operational insights of his 23XI team, revealing he invested $40 million of his personal wealth into the Nascar Cup series team launched with business partner Curtis Polk and longtime driver Denny Hamlin.

“Someone had to step forward,” 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 required examination through a new lens.”

The Core Dispute: Charter Agreements and Renewal Demands

The heart of the case involves the end of a 2016 agreement where Nascar granted each team a “charter”. This system mirrors other professional sports with independent 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 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 overhaul a business model Jordan said is unlawful to keep two hands on the wheel.

For Jordan and and Heather Gibbs, who preceded Jordan, are events from September 2024. She recounted a hectic and tense period where the sanctioning body informed teams they had to sign a charter agreement extension. This agreement consists of over a hundred pages detailing team compensation and a guaranteed spot in every race.

A Refusal to Sign

Jordan said that his team and its ally decided their sole viable path was to decline to sign that 112-page package and litigate the matter. All other teams signed the agreement.

Jordan and co-owner Denny Hamlin reached out to Nascar about potential amendments or negotiations. Nascar refused to engage, Jordan said.

The Bottom Line: Victory

Ultimately, the pushback against what he saw as a financially unsustainable model was driven by the usual bottom line for Jordan: Success.

“Denny convinced me getting a third driver improved our chances to win,” he testified, noting that he purchased another franchise late in 2024 for $28 million despite the uncertainty. “So I dove in.”

Account from the Gibbs Family

Heather Gibbs detailed her push for indefinite franchises, which she said a written letter to Nascar. She testified the pressure of the signature deadline didn’t sit well.

She said, Joe Gibbs first attempted to call and persuade Nascar against forcing signatures, but CEO Jim France declined the request.

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