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

Team Investment and a Competitive Drive

The owner disclosed operational insights of his 23XI team, saying he invested $40 million of his personal wealth into the Nascar Cup series team co-founded with business partner Curtis Polk and driver Hamlin.

“It fell to someone to act,” Jordan said during testimony. “As a newcomer, 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: Franchise System and Contract Pressure

At issue is the expiration of a 2016 deal where Nascar provided each team a franchise. The concept is similar to other professional sports with independent franchises, such as the Charlotte Hornets or the Carolina Panthers. This deal was set to expire in 2024 when Nascar demanded teams renew their charters.

Jordan testified for an hour and exited the courthouse to a media frenzy, with fans and media vying for a glimpse or a picture of the global icon.

Spearheading the Fight

Jordan’s 23XI is leading the full-court press along with Front Row Motorsports for Nascar to overhaul a operating model Jordan said 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 hectic and tense six hours where the racing circuit informed teams they had to sign a charter agreement extension. This agreement spanned 112 pages detailing team compensation and a guaranteed entry in Nascar-sponsored races.

A Refusal to Sign

Jordan explained that his team and its ally concluded their sole viable path was to decline to sign that extensive document and litigate the matter. All other teams agreed to the terms.

Jordan and co-owner Denny Hamlin approached Nascar about potential amendments or negotiations. Nascar wasn’t talking, according to his testimony.

The Bottom Line: Victory

Ultimately, the pushback 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 said, noting that he purchased another franchise late in 2024 for $28m despite the uncertainty. “So I dove in.”

Heather Gibbs’ Testimony

Gibbs described her request for permanent charters, which she said a formal letter to Nascar. She testified the pressure of the signature deadline was problematic.

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

“Please don’t force this on us,” Heather Gibbs said Joe Gibbs told Nascar’s executives. She said France replied, “If I wake up and I have 20 charters, I have 20. If there are 30, I have 30.”