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

Team Investment and a Competitive Drive

The owner disclosed operational insights of his racing venture, revealing he put in $40m of his own funds into the Cup Series operation launched with partner Polk and driver Hamlin.

“It fell to someone to act,” Jordan said during testimony. “As a newcomer, I had no fear. I felt I could challenge 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 expiration of a 2016 agreement where Nascar granted each team a “charter”. The concept is similar to other major leagues 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 an hour and exited the courthouse to pandemonium, with onlookers and reporters vying for a view or a picture of the sports legend.

Spearheading the Fight

23XI Racing is at the forefront of the push along with another racing team for Nascar to overhaul a operating model Jordan contended is unlawful to keep two hands on the wheel.

At issue for Jordan and a fellow team representative, who testified before Jordan, are events from September 2024. She recounted a hectic and tense six hours where the racing circuit informed teams they had to sign a charter agreement extension. This agreement consists of 112 pages outlining team compensation and a guaranteed entry in Nascar-sponsored races.

Choosing Litigation

Jordan explained 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 agreed to the terms.

Jordan and co-owner Denny Hamlin approached Nascar about possible changes or extension options. Nascar wasn’t talking, Jordan said.

The Ultimate Motivation: Victory

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

“Denny convinced me getting a third driver boosted our odds of winning,” he said, sharing that he bought a third charter last year for $28 million amid the legal dispute. “So I dove in.”

Account from the Gibbs Family

Gibbs described her request for permanent charters, which she said a written 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 forcing signatures, but CEO Jim France refused the appeal.

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