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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 motivated his effort with 23XI Racing to “challenge” Nascar over perceived violations of antitrust rules.

Financial Stakes and a Will to Win

The owner disclosed financial and corporate details of his 23XI team, saying he put in $40m of his own funds into the Cup Series operation launched with business partner Curtis Polk and longtime driver Denny Hamlin.

“It fell to someone to act,” Jordan said in the Charlotte courtroom. “I was a new person, I wasn’t afraid. I felt I could challenge Nascar in its entirety. I felt as far as the sport required examination from a different view.”

The Core Dispute: Charter Agreements and Renewal Demands

The heart of the case involves the end of a 2016 deal where Nascar provided each team a franchise. This system mirrors 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 teams renew their charters.

Jordan was on the witness stand for an hour and left the court to a media frenzy, with onlookers and reporters vying for a glimpse or a photo of the global icon.

Spearheading the Fight

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 maintain excessive control.

For Jordan and and Heather Gibbs, who testified before Jordan, are events from September 2024. She recounted a hectic and tense period where the sanctioning body told teams they must sign a charter agreement extension. The document consists of over a hundred pages detailing pay for chartered teams and a guaranteed entry in Nascar-sponsored races.

A Refusal to Sign

Jordan explained that 23XI and Front Row Motorsports decided their only feasible option was to refuse a signature that 112-page package and litigate the matter. All other teams agreed to the terms.

The team owners reached out to Nascar about potential amendments or extension options. Nascar wasn’t talking, Jordan said.

The Bottom Line: Victory

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

“Hamlin persuaded me adding a third car boosted our odds of winning,” he said, sharing that he bought a third charter last year for $28m despite the uncertainty. “So I took the plunge.”

Heather Gibbs’ Testimony

Gibbs described her request for permanent charters, which she said a written letter to Nascar. She testified the timing of the contract signing demand didn’t sit well.

According to her, Joe Gibbs first attempted to call and talk Nascar out of demanding signatures, but CEO Jim France refused the appeal.

“Don’t do this to us,” Heather Gibbs said was the message to Nascar’s leadership. The response was, “Whether I have 20 charters, I have 20. If I have 30, I have 30.”