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The basketball icon, introducing himself formally in a federal courtroom on Friday, admitted that his competitive side and status as a newcomer motivated his push for 23XI Racing to “challenge” Nascar over perceived violations of antitrust rules.

Financial Stakes and a Competitive Drive

The owner disclosed operational insights of his 23XI team, saying he put in $40m of his own funds into the Cup Series operation launched with partner Polk and driver Hamlin.

“It fell to someone to act,” Jordan said in the Charlotte courtroom. “I was a new person, I wasn’t afraid. I believed I could take on Nascar as a whole. I felt as far as the sport required examination from a different view.”

The Core Dispute: Charter Agreements and Renewal Demands

At issue is the end of a 2016 agreement where Nascar granted each team a “charter”. This system mirrors other major leagues with separately owned franchises, such as the Charlotte Hornets or the Carolina Panthers. This deal was set to expire in 2024 when Nascar insisted on teams renew their charters.

Jordan testified for an hour and left the court to a media frenzy, with fans and media vying for a glimpse or a photo 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 breaking the law to maintain excessive control.

For Jordan and and a fellow team representative, who testified before Jordan, are events from September 2024. Gibbs described a frantic and emotional period where the sanctioning body told teams they must sign a contract extension. The document consists of over a hundred pages outlining pay for chartered teams and a guaranteed entry in Nascar-sponsored races.

A Refusal to Sign

Jordan said that his team and its ally decided their sole viable path was to refuse a signature that 112-page package and litigate the matter. All other teams signed the agreement.

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

The Ultimate Motivation: Victory

Ultimately, the pushback against what he saw as a financially unsustainable model was driven by 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 dove in.”

Account from the Gibbs Family

Heather Gibbs detailed her push for indefinite franchises, which she said a formal letter to Nascar. She said the timing of the contract signing demand was problematic.

According to her, the team founder 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 executives. She said France replied, “If I wake up and I have 20 charters, I have 20. If I have 30, I have 30.”