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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 alleged violations of competition laws.

Team Investment and a Will to Win

The owner disclosed operational insights of his 23XI team, saying he put in $40m of his personal wealth into the Cup Series operation launched with business partner Curtis Polk and driver Hamlin.

“It fell to someone to act,” Jordan said during testimony. “I was a new person, I had no fear. 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.”

The Core Dispute: Franchise System and Contract Pressure

At issue is the expiration of a 2016 deal where Nascar granted each team a franchise. This system mirrors other professional sports with independent franchises, like the NBA’s Hornets or the Carolina Panthers. The agreement was due to end in 2024 when Nascar insisted on teams renew their charters.

Jordan testified for an hour and left the court to a media frenzy, with fans and media vying for a view or a photo of the sports legend.

Spearheading the Fight

Jordan’s 23XI is at the forefront of the push along with another racing team for Nascar to overhaul a operating model Jordan contended is unlawful to maintain excessive control.

At issue for Jordan and Heather Gibbs, who testified before Jordan, are details from last September. She recounted a frantic and emotional six hours where the sanctioning body informed teams they had to sign a charter agreement extension. The document consists of over a hundred pages outlining team compensation and a guaranteed entry in Nascar-sponsored races.

A Refusal to Sign

Jordan explained that his team and its ally concluded their only feasible option was to refuse a signature that 112-page package and litigate the matter. All other teams signed the agreement.

The team owners approached Nascar about potential amendments or extension options. Nascar refused to engage, according to his testimony.

The Bottom Line: Victory

But in the end, the pushback against what he saw as a financially unsustainable model was driven by the familiar goal for Jordan: Winning.

“Hamlin persuaded me adding a third car boosted our odds of winning,” he said, noting that he bought a third charter late in 2024 for $28 million amid the legal dispute. “So I dove in.”

Heather Gibbs’ Testimony

Gibbs described her request for permanent charters, which she said a formal letter to Nascar. She testified the timing of the signature deadline was problematic.

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 was the message to Nascar’s executives. She said France replied, “If I wake up and I have 20 charters, I have 20. If there are 30, I have 30.”