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The basketball icon, as he cordially introduced himself in a Charlotte court on Friday, admitted that his competitive side and status as a newcomer motivated his push for 23XI Racing to “challenge” Nascar over alleged violations of competition laws.

Financial Stakes and a Competitive Drive

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

“It fell to someone to act,” Jordan stated during testimony. “I was a new person, I had no fear. I felt I could challenge Nascar as a whole. From my perspective, the sport required examination through a new lens.”

Central Issue: Franchise System and Contract Pressure

At issue is the end of a 2016 deal where Nascar granted each team a franchise. 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 about sixty minutes and exited the courthouse to a media frenzy, with fans and media clamoring for a glimpse or a picture of the sports legend.

Leading the Legal Charge

23XI Racing is leading the full-court press along with Front Row Motorsports for Nascar to change a operating model Jordan said is unlawful to maintain excessive control.

For Jordan and and Heather Gibbs, who testified before Jordan, are details from September 2024. She recounted a frantic and emotional six hours where the sanctioning body informed teams they must sign a contract extension. The document consists of 112 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 sole viable path was to refuse a signature that extensive document and take the issue to court. All other teams agreed to the terms.

Jordan and co-owner Denny Hamlin approached Nascar about possible changes or extension options. Nascar wasn’t talking, Jordan said.

The Bottom Line: Winning

But in the end, 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 boosted our odds of winning,” he said, noting that he purchased another franchise last year for $28m amid the legal dispute. “So I dove in.”

Heather Gibbs’ Testimony

Gibbs described her push for indefinite franchises, which she said a written letter to Nascar. She testified the pressure of the contract signing demand was problematic.

She said, Joe Gibbs first tried to call and persuade Nascar against forcing signatures, but Nascar’s leader refused the appeal.

“Don’t do this to us,” Gibbs recounted was the message to Nascar’s leadership. She said France replied, “Whether I have 20 charters, I have 20. If I have 30, I have 30.”