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Michael Jeffrey Jordan, introducing himself formally in a federal courtroom on Friday, admitted that his drive to win and status as a newcomer emboldened his push for 23XI Racing to “challenge” Nascar over perceived violations of competition laws.

Team Investment and a Competitive Drive

The owner disclosed financial and corporate details of his 23XI team, saying he invested $40 million of his own funds into the Cup Series operation co-founded with business partner Curtis Polk and driver Hamlin.

“Someone had to step forward,” Jordan stated in the Charlotte courtroom. “I was a new person, I had no fear. I felt I could challenge Nascar in its entirety. From my perspective, the sport required examination through a new lens.”

The Core Dispute: Franchise System and Contract Pressure

The heart of the case involves the expiration of a 2016 agreement where Nascar provided each team a franchise. This system mirrors other professional sports with separately owned franchises, like the NBA’s 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 photo of the sports legend.

Spearheading the Fight

Jordan’s 23XI is at the forefront of the push along with another racing team for Nascar to overhaul a operating 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. Gibbs described a frantic and emotional period where the racing circuit informed teams they must sign a contract extension. The document consists of over a hundred pages outlining team compensation and a guaranteed entry in every race.

A Refusal to Sign

Jordan explained that 23XI and Front Row Motorsports decided their only feasible option was to decline to sign that extensive document and litigate the matter. The other 13 organizations signed the agreement.

Jordan and co-owner Denny Hamlin reached out to Nascar about potential amendments or extension options. Nascar wasn’t talking, according to his testimony.

The Ultimate Motivation: Winning

Ultimately, the pushback against what he saw as a financially unsustainable model was mostly about the usual bottom line for Jordan: Winning.

“Hamlin persuaded me adding a third car boosted our odds of winning,” he said, noting that he purchased another franchise last year for $28 million 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 said the timing of the signature deadline was problematic.

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

“Please don’t force this on us,” Gibbs recounted Joe Gibbs told Nascar’s executives. She said France replied, “Whether I have 20 charters, I have 20. If I have 30, I have 30.”