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

Financial Stakes and a Competitive Drive

The owner disclosed operational insights of his racing venture, saying he invested $40 million of his personal wealth into the Nascar Cup series team launched with business partner Curtis Polk and driver Hamlin.

“It fell to someone to act,” Jordan said 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 through a new lens.”

The Core Dispute: Franchise System and Contract Pressure

At issue is the end of a 2016 deal where Nascar granted each team a “charter”. This system mirrors other professional sports with separately owned franchises, such as the NBA’s Hornets or the Carolina Panthers. This deal was due to end in 2024 when Nascar insisted on charter membership renewals.

Jordan was on the witness stand for an hour and left the court to a media frenzy, with fans and media vying for a view or a photo of the global icon.

Spearheading the Fight

23XI Racing 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.

At issue for Jordan and Heather Gibbs, who preceded Jordan, are events from September 2024. She recounted a hectic and tense six hours where the sanctioning body told teams they had to sign a charter agreement extension. The document spanned over a hundred pages detailing team compensation and a guaranteed spot in every race.

Choosing Litigation

Jordan explained that his team and its ally concluded their only feasible option was to decline to sign that extensive document and litigate the matter. The other 13 organizations agreed to the terms.

Jordan and co-owner Denny Hamlin approached Nascar about possible changes or negotiations. Nascar refused to engage, according to his testimony.

The Bottom Line: Victory

Ultimately, the resistance against what he saw as a financially unsustainable model was driven by the usual bottom line 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 despite the uncertainty. “So I took the plunge.”

Heather Gibbs’ Testimony

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

She said, Joe Gibbs first tried to call and talk Nascar out of forcing signatures, but Nascar’s leader declined the request.

“Don’t do this to us,” Gibbs recounted was the message to Nascar’s executives. She said France replied, “If I wake up and I have 20 charters, I have 20. If there are 30, that’s the number.”