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The basketball icon, introducing himself formally in a Charlotte court on Friday, stated that his competitive side and status as a newcomer emboldened his push for 23XI Racing to “challenge” Nascar over perceived violations of competition laws.

Team Investment and a Competitive Drive

Jordan shared financial and corporate details of his racing venture, saying he invested $40m of his personal wealth into the Nascar Cup series team co-founded with business partner Curtis Polk and driver Hamlin.

“Someone had to step forward,” Jordan stated in the Charlotte courtroom. “As a newcomer, I wasn’t afraid. I believed I could take on Nascar as a whole. From my perspective, the sport it needed to be looked at through a new lens.”

Central Issue: Franchise System and Renewal Demands

The heart of the case involves the expiration of a 2016 deal where Nascar granted each team a “charter”. This system mirrors other professional sports with independent franchises, such as the NBA’s Hornets or the NFL’s Panthers. The agreement was due to end in 2024 when Nascar insisted on charter membership renewals.

Jordan testified for an hour 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

Jordan’s 23XI is leading the full-court press along with another racing team for Nascar to overhaul a business model Jordan said is unlawful to keep two hands on the wheel.

At issue for Jordan and Heather Gibbs, who preceded Jordan, are details from last September. Gibbs described a hectic and tense six hours where the racing circuit informed teams they had to sign a contract extension. The document consists of over a hundred pages detailing team compensation and a guaranteed entry in every race.

Choosing Litigation

Jordan explained that 23XI and Front Row Motorsports decided their sole viable path was to refuse a signature that extensive document and litigate the matter. All other teams 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 Ultimate Motivation: Winning

Ultimately, the pushback against what he saw as a unsustainable system was driven by the usual bottom line for Jordan: Winning.

“Denny convinced me adding a third car boosted our odds of winning,” he said, sharing that he bought a third charter late in 2024 for $28m despite the uncertainty. “So I dove in.”

Account from the Gibbs Family

Heather Gibbs detailed her push for indefinite franchises, submitted in a formal letter to Nascar. She testified the timing of the signature deadline was problematic.

According to her, the team founder first tried to call and talk Nascar out of demanding signatures, but CEO Jim France refused the appeal.

“Please don’t force this on us,” Gibbs recounted was the message to 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.”