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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 push for 23XI Racing to confront Nascar over perceived violations of competition laws.

Team Investment and a Competitive Drive

The owner disclosed financial and corporate details of his racing venture, revealing he invested $40m of his personal wealth into the Nascar Cup series team co-founded with business partner Curtis Polk and longtime driver Denny Hamlin.

“Someone had to step forward,” Jordan stated during testimony. “As a newcomer, I had no fear. I believed I could take on Nascar as a whole. I felt as far as the sport it needed to be looked at through a new lens.”

Central Issue: Charter Agreements and Renewal Demands

At issue is the expiration of a 2016 agreement where Nascar granted each team a “charter”. The concept is similar to other professional sports with independent franchises, like the Charlotte Hornets or the NFL’s Panthers. The agreement was due to end in 2024 when Nascar insisted on teams renew their charters.

Jordan was on the witness stand for about sixty minutes and left the court to pandemonium, with onlookers and reporters vying for a glimpse 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 overhaul a operating model Jordan contended is unlawful to keep two hands on the wheel.

For Jordan and and a fellow team representative, who preceded Jordan, are events from September 2024. 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 detailing pay for chartered teams and a guaranteed spot in every race.

Choosing Litigation

Jordan explained that his team and its ally decided their only feasible option 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 wasn’t talking, Jordan said.

The Bottom Line: Victory

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

“Hamlin persuaded me adding a third car boosted our odds of winning,” he said, sharing that he purchased another franchise last year for $28m despite the uncertainty. “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 testified the pressure of the contract signing demand didn’t sit well.

She said, Joe Gibbs first attempted to call and persuade Nascar against demanding signatures, but CEO Jim France refused the appeal.

“Please don’t force this on 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 there are 30, that’s the number.”