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The basketball icon, as he cordially introduced himself in a federal courtroom on Friday, stated that his competitive side and status as a newcomer emboldened his push for 23XI Racing to confront Nascar over alleged violations of competition laws.

Financial Stakes and a Will to Win

The owner disclosed financial and corporate details of his 23XI team, revealing he invested $40 million of his own funds into the Nascar Cup series team 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 in its entirety. From my perspective, the sport required examination from a different view.”

The Core Dispute: Charter Agreements and Renewal Demands

At issue is the expiration of a 2016 deal where Nascar provided each team a “charter”. The concept is similar to other professional sports with independent franchises, such as the NBA’s Hornets or the NFL’s Panthers. The agreement was set to expire in 2024 when Nascar demanded teams renew their charters.

Jordan testified for an hour and exited the courthouse to pandemonium, with fans and media clamoring for a glimpse or a photo of the global icon.

Leading the Legal Charge

Jordan’s 23XI is at the forefront of the push along with Front Row Motorsports for Nascar to overhaul a operating model Jordan contended is breaking the law to maintain excessive control.

For Jordan and and Heather Gibbs, who preceded Jordan, are events from last September. Gibbs described a frantic and emotional period where the sanctioning body informed teams they must sign a charter agreement extension. The document spanned over a hundred pages detailing pay for chartered teams and a guaranteed spot in Nascar-sponsored races.

Choosing Litigation

Jordan said that his team and its ally concluded their only feasible option was to refuse a signature that extensive document and take the issue to court. The other 13 organizations agreed to the terms.

Jordan and co-owner Denny Hamlin reached out to Nascar about potential amendments or extension options. Nascar refused to engage, Jordan said.

The Bottom Line: Victory

But in the end, the pushback against what he saw as a unsustainable system was mostly about the usual bottom line for Jordan: Success.

“Hamlin persuaded me adding a third car improved our chances to win,” he said, noting that he bought a third charter late in 2024 for $28m despite the uncertainty. “So I took the plunge.”

Account from the Gibbs Family

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

According to her, Joe Gibbs first attempted to call and persuade Nascar against forcing 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, “If I wake up and I have 20 charters, that’s what I have. If there are 30, that’s the number.”