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The basketball icon, introducing himself formally in a federal courtroom on Friday, admitted that his drive to win and novelty within the sport motivated his effort with 23XI Racing to confront Nascar over alleged violations of competition laws.

Team Investment and a Competitive Drive

The owner disclosed financial and corporate details of his 23XI team, saying he invested $40m of his own funds into the Cup Series operation launched with business partner Curtis Polk and driver Hamlin.

“Someone had to step forward,” Jordan stated 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 through a new lens.”

Central Issue: Franchise System and Contract Pressure

At issue is the expiration of a 2016 agreement where Nascar granted each team a franchise. This system mirrors other professional sports with independent franchises, such as the Charlotte Hornets or the NFL’s Panthers. This deal was set to expire in 2024 when Nascar demanded teams renew their charters.

Jordan testified for an hour and exited the courthouse to a media frenzy, with fans and media clamoring for a view or a picture of the global icon.

Spearheading the Fight

23XI Racing is at the forefront of the push along with another racing team for Nascar to change a operating model Jordan said is breaking the law to keep two hands on the wheel.

At issue for Jordan and Heather Gibbs, who testified before Jordan, are details from September 2024. Gibbs described a frantic and emotional period where the sanctioning body informed teams they had to sign a contract extension. This agreement spanned over a hundred pages outlining team compensation and a guaranteed entry in every race.

Choosing Litigation

Jordan said that his team and its ally decided their only feasible option was to decline to sign that 112-page package and take the issue to court. All other teams signed the agreement.

The team owners reached out to Nascar about possible changes or negotiations. Nascar wasn’t talking, Jordan said.

The Bottom Line: Victory

Ultimately, the resistance against what he saw as a unsustainable system was driven by the familiar goal for Jordan: Success.

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

Account from the Gibbs Family

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 persuade Nascar against forcing signatures, but CEO Jim France declined the request.

“Don’t do this to us,” Heather Gibbs said Joe Gibbs told Nascar’s leadership. The response was, “Whether I have 20 charters, I have 20. If I have 30, that’s the number.”