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The basketball icon, introducing himself formally in a Charlotte court on Friday, admitted that his competitive side and novelty within the sport motivated his effort with 23XI Racing to confront Nascar over perceived violations of competition laws.

Financial Stakes and a Competitive Drive

Jordan shared operational insights of his 23XI team, saying he put in $40 million of his own funds into the Cup Series operation co-founded with business partner Curtis Polk and longtime driver Denny Hamlin.

“It fell to someone to act,” Jordan said during testimony. “I was a new person, I wasn’t afraid. I believed I could take on Nascar in its entirety. From my perspective, the sport it needed to be looked at through a new lens.”

The Core Dispute: Charter Agreements and Contract Pressure

At issue is the expiration of a 2016 agreement where Nascar provided each team a franchise. This system mirrors other major leagues with separately owned franchises, such as 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 was on the witness stand for an hour and left the court to pandemonium, with onlookers and reporters vying for a view or a picture of the sports legend.

Leading the Legal Charge

23XI Racing is leading the full-court press along with another racing team for Nascar to change a business model Jordan said is unlawful to keep two hands on the wheel.

For Jordan and and a fellow team representative, who preceded Jordan, are events from last September. She recounted a frantic and emotional six hours where the sanctioning body told teams they must sign a contract extension. This agreement spanned 112 pages outlining team compensation and a guaranteed spot in every race.

Choosing Litigation

Jordan said that his team and its ally concluded their sole viable path 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 reached out to Nascar about possible changes or negotiations. Nascar refused to engage, according to his testimony.

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, sharing that he bought a third charter late in 2024 for $28m despite the uncertainty. “So I took the plunge.”

Account from the Gibbs Family

Heather Gibbs detailed her push for indefinite franchises, submitted in a written letter to Nascar. She said the pressure of the signature deadline was problematic.

According to her, the team founder first attempted to call and talk Nascar out of forcing signatures, but CEO Jim France refused the appeal.

“Please don’t force this on us,” Heather Gibbs said was the message to Nascar’s executives. The response was, “Whether I have 20 charters, I have 20. If there are 30, that’s the number.”