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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 effort with 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, revealing he put in $40 million of his personal wealth into the Nascar Cup series team launched with business partner Curtis Polk and driver Hamlin.

“Someone had to step forward,” Jordan said in the Charlotte courtroom. “I was a new person, I wasn’t afraid. I felt I could challenge Nascar in its entirety. 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

At issue is the expiration of a 2016 agreement where Nascar granted each team a “charter”. The concept is similar to other major leagues with independent franchises, like the Charlotte Hornets or the NFL’s Panthers. The agreement was set to expire in 2024 when Nascar demanded charter membership renewals.

Jordan testified for an hour and exited the courthouse to a media frenzy, with fans and media vying for a view 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 business model Jordan contended is breaking the law to keep two hands on the wheel.

At issue for Jordan and Heather Gibbs, who preceded Jordan, are details from last September. She recounted a hectic and tense period where the racing circuit informed teams they must sign a charter agreement extension. The document 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 concluded their sole viable path was to refuse a signature that extensive document and take the issue to court. The other 13 organizations signed the agreement.

The team owners reached out to Nascar about potential amendments or negotiations. Nascar wasn’t talking, Jordan said.

The Ultimate Motivation: Winning

But in the end, the pushback against what he saw as a unsustainable system was driven by the familiar goal for Jordan: Winning.

“Denny convinced me getting a third driver boosted our odds of winning,” he said, noting that he purchased another franchise last year for $28 million despite the uncertainty. “So I took the plunge.”

Heather Gibbs’ Testimony

Gibbs described her push for indefinite franchises, submitted in a written letter to Nascar. She said the timing of the contract signing demand was problematic.

She said, Joe Gibbs first attempted to call and persuade Nascar against forcing signatures, but CEO Jim France refused the appeal.

“Please don’t force this on us,” Gibbs recounted Joe Gibbs told Nascar’s executives. The response was, “Whether I have 20 charters, that’s what I have. If I have 30, I have 30.”