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Michael Jeffrey Jordan, 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 alleged violations of antitrust rules.

Team Investment and a Will to Win

The owner disclosed financial and corporate details of his 23XI team, saying he put in $40 million of his personal wealth into the Nascar Cup series team co-founded with partner Polk and driver Hamlin.

“Someone had to step forward,” Jordan said in the Charlotte courtroom. “I was a new person, I had no fear. I felt I could challenge Nascar as a whole. I felt as far as the sport it needed to be looked at through a new lens.”

Central Issue: Charter Agreements and Renewal Demands

The heart of the case involves the expiration of a 2016 agreement where Nascar granted each team a “charter”. The concept is similar to other professional sports with independent franchises, such as the NBA’s Hornets or the Carolina Panthers. The agreement was set to expire in 2024 when Nascar demanded teams renew their charters.

Jordan was on the witness stand for an hour and exited the courthouse to pandemonium, with onlookers and reporters clamoring for a glimpse or a photo of the global icon.

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 said is unlawful to maintain excessive control.

At issue for Jordan and Heather Gibbs, who testified before Jordan, are details from last September. She recounted a hectic and tense six hours where the sanctioning body informed teams they had to sign a charter agreement extension. This agreement consists of 112 pages outlining pay for chartered teams and a guaranteed spot in Nascar-sponsored races.

Choosing Litigation

Jordan explained that 23XI and Front Row Motorsports decided 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.

The team owners approached Nascar about possible changes or extension options. Nascar refused to engage, Jordan said.

The Bottom Line: Victory

Ultimately, the pushback against what he saw as a financially unsustainable model was mostly about the familiar goal for Jordan: Success.

“Denny convinced me adding a third car improved our chances to win,” he testified, noting that he purchased another franchise late in 2024 for $28m amid the legal dispute. “So I dove in.”

Account from the Gibbs Family

Heather Gibbs detailed her push for indefinite franchises, submitted in a written letter to Nascar. She said the pressure of the signature deadline didn’t sit well.

According to her, Joe Gibbs first tried to call and talk Nascar out of forcing signatures, but CEO Jim France refused the appeal.

“Please don’t force this on us,” Gibbs recounted was the message to Nascar’s executives. The response was, “If I wake up and I have 20 charters, I have 20. If I have 30, I have 30.”