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The basketball icon, as he cordially introduced himself in a federal courtroom on Friday, admitted that his drive to win and status as a newcomer motivated his effort with 23XI Racing to confront Nascar over perceived violations of competition laws.

Team Investment and a Competitive Drive

The owner disclosed operational insights of his 23XI team, saying he invested $40m of his personal wealth into the Nascar Cup series team co-founded with partner Polk and longtime driver Denny Hamlin.

“It fell to someone to act,” Jordan stated during testimony. “As a newcomer, I wasn’t afraid. I believed I could take on Nascar as a whole. From my perspective, the sport required examination from a different view.”

The Core Dispute: Franchise System and Contract Pressure

At issue is the end of a 2016 agreement where Nascar provided each team a franchise. The concept is similar to other professional sports with independent franchises, like the Charlotte Hornets or the NFL’s Panthers. This deal was due to end in 2024 when Nascar insisted on charter membership renewals.

Jordan testified for about sixty minutes and exited the courthouse to pandemonium, with onlookers and reporters vying for a glimpse or a photo of the sports legend.

Leading the Legal Charge

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

For Jordan and and a fellow team representative, who preceded Jordan, are events from last September. Gibbs described a frantic and emotional six hours where the sanctioning body told teams they had to sign a contract extension. The document spanned over a hundred pages outlining pay for chartered teams and a guaranteed entry in every race.

Choosing Litigation

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

The team owners approached Nascar about possible changes or extension options. Nascar refused to engage, Jordan said.

The Bottom Line: Victory

Ultimately, the pushback against what he saw as a financially unsustainable model was mostly about the usual bottom line for Jordan: Winning.

“Hamlin persuaded me getting a third driver improved our chances to win,” he testified, sharing that he purchased another franchise late in 2024 for $28m amid the legal dispute. “So I took the plunge.”

Heather Gibbs’ Testimony

Gibbs described her push for indefinite franchises, submitted in a formal letter to Nascar. She said the timing of the contract signing demand didn’t sit well.

She said, Joe Gibbs first tried to call and talk Nascar out of forcing signatures, but CEO Jim France refused the appeal.

“Don’t do this to us,” Gibbs recounted Joe Gibbs told Nascar’s leadership. The response was, “Whether I have 20 charters, that’s what I have. If there are 30, I have 30.”