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

Team Investment and a Will to Win

Jordan shared operational insights of his racing venture, revealing he invested $40 million of his own funds into the Cup Series operation launched with partner Polk and longtime driver Denny Hamlin.

“Someone had to step forward,” Jordan stated during testimony. “I was a new person, I wasn’t afraid. I felt I could challenge Nascar in its entirety. I felt as far as the sport it needed to be looked at from a different view.”

The Core Dispute: Franchise System and Renewal Demands

At issue is the expiration of a 2016 deal where Nascar provided each team a “charter”. The concept is similar to other major leagues with independent franchises, like the NBA’s Hornets or the Carolina 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 vying for a view 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 overhaul a business model Jordan said is breaking the law to maintain excessive control.

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 racing circuit informed teams they must sign a contract extension. This agreement consists of 112 pages detailing pay for chartered teams and a guaranteed entry in Nascar-sponsored races.

A Refusal to Sign

Jordan explained that 23XI and Front Row Motorsports decided their only feasible option 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 wasn’t talking, according to his testimony.

The Ultimate Motivation: Victory

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

“Hamlin persuaded me adding a third car boosted our odds of winning,” he testified, noting that he purchased another franchise late in 2024 for $28m despite the uncertainty. “So I dove in.”

Heather Gibbs’ Testimony

Heather Gibbs detailed her request for permanent charters, submitted in a written letter to Nascar. She said the pressure of the contract signing demand didn’t sit well.

According to her, Joe Gibbs first attempted to call and persuade Nascar against forcing signatures, but CEO Jim France declined the request.

“Please don’t force this on us,” Heather Gibbs said Joe Gibbs told Nascar’s executives. The response was, “If I wake up and I have 20 charters, that’s what I have. If there are 30, I have 30.”