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The basketball icon, as he cordially introduced himself in a federal courtroom on Friday, stated that his competitive side and novelty within the sport emboldened his effort with 23XI Racing to “challenge” Nascar over perceived violations of competition laws.

Financial Stakes and a Competitive Drive

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

“It fell to someone to act,” Jordan said during testimony. “I was a new person, I had no fear. I believed I could take on Nascar as a whole. From my perspective, the sport it needed to be looked at from a different view.”

The Core Dispute: Franchise System and Contract Pressure

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

Jordan was on the witness stand for an hour and left the court to pandemonium, with fans and media vying for a glimpse or a picture of the sports legend.

Spearheading the Fight

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

For Jordan and and a fellow team representative, who preceded Jordan, are details from September 2024. Gibbs described a frantic and emotional six hours where the racing circuit informed teams they had to sign a charter agreement extension. The document consists of 112 pages outlining team compensation and a guaranteed spot in every race.

Choosing Litigation

Jordan explained that 23XI and Front Row Motorsports concluded their sole viable path was to refuse a signature that 112-page package and take the issue to court. The other 13 organizations signed the agreement.

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

The Ultimate Motivation: Victory

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

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

Heather Gibbs’ Testimony

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

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

“Don’t do this to us,” Heather Gibbs said Joe Gibbs told Nascar’s executives. The response was, “Whether I have 20 charters, I have 20. If I have 30, I have 30.”