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Michael Jeffrey Jordan, as he cordially introduced himself in a federal courtroom on Friday, admitted that his competitive side and novelty within the sport motivated his effort with 23XI Racing to “challenge” Nascar over perceived violations of antitrust rules.

Financial Stakes 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 co-founded with business partner Curtis Polk and driver Hamlin.

“It fell to someone to act,” Jordan stated in the Charlotte courtroom. “I was a new person, I had no fear. I felt I could challenge Nascar as a whole. From my perspective, the sport required examination through a new lens.”

Central Issue: Charter Agreements and Renewal Demands

At issue is the expiration of a 2016 agreement where Nascar provided each team a franchise. This system mirrors other professional sports with separately owned franchises, such as the NBA’s Hornets or the NFL’s Panthers. The agreement was due to end in 2024 when Nascar insisted on teams renew their charters.

Jordan testified for about sixty minutes and exited the courthouse to a media frenzy, with fans and media vying for a glimpse or a picture of the sports legend.

Spearheading the Fight

Jordan’s 23XI is at the forefront of the push along with Front Row Motorsports for Nascar to overhaul a operating model Jordan said is breaking the law to maintain excessive control.

For Jordan and and a fellow team representative, who preceded Jordan, are events from last September. Gibbs described a hectic and tense period where the sanctioning body informed teams they must sign a charter agreement extension. The document consists of 112 pages detailing pay for chartered teams and a guaranteed spot in every race.

Choosing Litigation

Jordan said that 23XI and Front Row Motorsports decided their only feasible option 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 extension options. Nascar refused to engage, according to his testimony.

The Bottom Line: Winning

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

“Denny convinced me adding a third car improved our chances to win,” he testified, sharing that he purchased another franchise last year for $28m despite the uncertainty. “So I took the plunge.”

Heather Gibbs’ Testimony

Heather Gibbs detailed her request for permanent charters, submitted in a written letter to Nascar. She said the pressure of the contract signing demand was problematic.

She said, Joe Gibbs first tried 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. She said France replied, “If I wake up and I have 20 charters, I have 20. If there are 30, that’s the number.”