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Michael Jeffrey Jordan, as he cordially introduced himself in a federal courtroom on Friday, admitted that his competitive side and status as a newcomer emboldened his push for 23XI Racing to “challenge” Nascar over perceived violations of antitrust rules.

Team Investment and a Will to Win

The owner disclosed financial and corporate details of his racing venture, saying he put in $40 million of his own funds into the Nascar Cup series team launched with partner Polk and longtime driver Denny Hamlin.

“It fell to someone to act,” Jordan stated in the Charlotte courtroom. “As a newcomer, I had no fear. I believed I could take on Nascar as a whole. I felt as far as the sport it needed to be looked at through a new lens.”

The Core Dispute: Franchise System and Contract Pressure

The heart of the case involves the expiration of a 2016 deal where Nascar granted each team a “charter”. The concept is similar to other major leagues with independent franchises, such as the NBA’s Hornets or the Carolina Panthers. The agreement was due to end in 2024 when Nascar insisted on charter membership renewals.

Jordan testified for an hour and left the court to pandemonium, with fans and media vying for a view or a photo of the global icon.

Spearheading the Fight

23XI Racing is leading the full-court press along with another racing team for Nascar to change a operating model Jordan contended is unlawful to maintain excessive control.

At issue for Jordan and Heather Gibbs, who testified before Jordan, are events from September 2024. Gibbs described a hectic and tense period where the sanctioning body informed teams they had to sign a charter agreement extension. This agreement consists of over a hundred pages detailing pay for chartered teams and a guaranteed spot in Nascar-sponsored races.

Choosing Litigation

Jordan said that 23XI and Front Row Motorsports decided their sole viable path was to decline to sign that 112-page package and take the issue to court. All other teams signed the agreement.

The team owners reached out to Nascar about potential amendments or extension options. Nascar refused to engage, Jordan said.

The Bottom Line: Winning

But in the end, the pushback against what he saw as a unsustainable system was mostly about the familiar goal for Jordan: Success.

“Hamlin persuaded me getting a third driver boosted our odds of winning,” he testified, sharing that he purchased another franchise late in 2024 for $28 million despite the uncertainty. “So I dove in.”

Heather Gibbs’ Testimony

Heather Gibbs detailed her push for indefinite franchises, submitted in a formal letter to Nascar. She testified the pressure of the contract signing demand didn’t sit well.

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

“Don’t do this to us,” Gibbs recounted was the message to Nascar’s leadership. She said France replied, “Whether I have 20 charters, I have 20. If there are 30, that’s the number.”