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Michael Jeffrey Jordan, introducing himself formally in a federal courtroom on Friday, stated that his competitive side and novelty within the sport motivated his effort with 23XI Racing to “challenge” Nascar over alleged violations of competition laws.

Team Investment and a Competitive Drive

Jordan shared financial and corporate details of his 23XI team, saying he put in $40 million of his own funds into the Cup Series operation co-founded with business partner Curtis Polk and longtime driver Denny Hamlin.

“It fell to someone to act,” Jordan said in the Charlotte courtroom. “I was a new person, I had no fear. I believed I could take on Nascar in its entirety. I felt as far as the sport required examination from a different view.”

The Core Dispute: Charter Agreements and Renewal Demands

The heart of the case involves the end of a 2016 agreement where Nascar provided each team a franchise. The concept is similar to other major leagues with separately owned franchises, such as the Charlotte Hornets or the Carolina Panthers. This deal was due to end in 2024 when Nascar insisted on teams renew their charters.

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

Leading the Legal Charge

23XI Racing is leading the full-court press along with another racing team for Nascar to overhaul a operating model Jordan said is breaking the law to keep two hands on the wheel.

At issue for Jordan and Heather Gibbs, who preceded Jordan, are details from last September. She recounted a hectic and tense six hours where the racing circuit informed teams they had to sign a charter agreement extension. The document consists of 112 pages detailing pay for chartered teams and a guaranteed entry in every race.

A Refusal to Sign

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

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

The Ultimate Motivation: Victory

But in the end, the resistance against what he saw as a financially unsustainable model was mostly about the familiar goal for Jordan: Success.

“Hamlin persuaded me getting a third driver boosted our odds of winning,” he said, sharing that he bought a third charter late in 2024 for $28m despite the uncertainty. “So I took the plunge.”

Heather Gibbs’ Testimony

Gibbs described her push for indefinite franchises, submitted in a written letter to Nascar. She testified the timing of the signature deadline didn’t sit well.

She said, Joe Gibbs first tried to call and persuade Nascar against demanding signatures, but CEO Jim France declined the request.

“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 I have 30, that’s the number.”