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Michael Jeffrey Jordan, as he cordially introduced himself 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 perceived violations of antitrust rules.

Team Investment and a Will to Win

Jordan shared operational insights of his 23XI team, revealing he put in $40 million of his personal wealth into the Cup Series operation co-founded with partner Polk and driver Hamlin.

“It fell to someone to act,” Jordan said during testimony. “I was a new person, I wasn’t afraid. I believed I could take on Nascar as a whole. From my perspective, the sport required examination through a new lens.”

The Core Dispute: Franchise System and Renewal Demands

At issue is the expiration of a 2016 deal where Nascar granted each team a franchise. This system mirrors other major leagues with separately owned franchises, like the NBA’s Hornets or the NFL’s Panthers. This deal was due to end in 2024 when Nascar insisted on teams renew their charters.

Jordan testified for an hour and exited the courthouse to a media frenzy, with onlookers and reporters vying for a glimpse or a photo of the sports legend.

Leading the Legal Charge

23XI Racing is at the forefront of the push 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.

At issue for Jordan and a fellow team representative, 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. This agreement consists of over a hundred pages outlining pay for chartered teams and a guaranteed entry in every race.

Choosing Litigation

Jordan explained that 23XI and Front Row Motorsports decided their only feasible option was to decline to sign that 112-page package and litigate the matter. The other 13 organizations agreed to the terms.

The team owners approached Nascar about potential amendments or negotiations. Nascar refused to engage, according to his testimony.

The Bottom Line: Victory

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

“Denny convinced me getting a third driver boosted our odds of winning,” he said, noting that he purchased another franchise late in 2024 for $28 million amid the legal dispute. “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.

According to her, the team founder first attempted to call and talk Nascar out of demanding signatures, but CEO Jim France declined the request.

“Don’t do this to us,” Gibbs recounted was the message to Nascar’s executives. The response was, “Whether I have 20 charters, that’s what I have. If there are 30, that’s the number.”