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

Team Investment and a Competitive Drive

Jordan shared financial and corporate details of his racing venture, saying he put in $40 million of his personal wealth into the Cup Series operation launched with partner Polk and longtime driver Denny Hamlin.

“It fell to someone to act,” Jordan stated during testimony. “I was a new person, I had no fear. I believed I could take on Nascar in its entirety. From my perspective, the sport it needed to be looked at from a different view.”

The Core Dispute: Franchise System and Contract Pressure

At issue is the end of a 2016 deal where Nascar granted each team a “charter”. This system mirrors other major leagues 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 testified for an hour and left the court to pandemonium, with fans and media clamoring for a view or a photo of the global icon.

Leading the Legal Charge

23XI Racing is at the forefront of the push along with another racing team for Nascar to change a business model Jordan contended is unlawful to maintain excessive control.

For Jordan and and Heather Gibbs, who testified before Jordan, are events from last September. Gibbs described a hectic and tense six hours where the sanctioning body told teams they had to sign a charter agreement extension. This agreement consists of 112 pages detailing team compensation and a guaranteed spot in every race.

Choosing Litigation

Jordan explained that his team and its ally decided their only feasible option was to decline to sign that 112-page package and litigate the matter. All other teams agreed to the terms.

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

The Ultimate Motivation: Winning

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

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

Account from the Gibbs Family

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, the team founder first tried to call and persuade Nascar against demanding signatures, but CEO Jim France declined the request.

“Don’t do this to us,” Heather Gibbs said was the message to Nascar’s leadership. The response was, “If I wake up and I have 20 charters, I have 20. If I have 30, I have 30.”