Nascar's top executive, Steve Phelps, has resigned from his role as Commissioner after more than two decades with the premier American motorsport series. His departure follows a bruising federal antitrust trial where damaging private text messages he sent were made public.
The Scandal That Forced a Resignation
The catalyst for Phelps's exit was the revelation of inflammatory texts sent during tense revenue-sharing negotiations with race teams. In one particularly damaging exchange, Phelps referred to Hall of Fame team owner Richard Childress as "a stupid redneck" who "needs to be taken out back and flogged." These messages came to light during the discovery process of a lawsuit brought against Nascar by two race teams.
The fallout was swift. Bass Pro Shops founder Johnny Morris, a major backer of both Nascar and Richard Childress Racing, wrote a scathing letter demanding Phelps's removal. Morris compared the situation to a hypothetical Major League Baseball commissioner insulting legends like Babe Ruth, arguing such disrespect was untenable.
A Swift Settlement and a Quiet Exit
The antitrust trial, which lasted nine days, concluded with a settlement. Nascar reached an agreement with 23XI Racing, co-owned by basketball icon Michael Jordan and driver Denny Hamlin, and Front Row Motorsports, owned by Bob Jenkins. The settlement came just one day after Morris's letter was published and two days after Phelps gave his testimony.
Observers noted Phelps's demeanour as he left the witness stand last month: his jaw was clenched, his face was red, and he avoided eye contact with Nascar owners as he hurried from the courtroom, followed by his fiancée.
Phelps, who was promoted from President to become Nascar's first-ever Commissioner last season, will officially leave the company at the end of January. His departure comes just before the season's first exhibition race on 1 February.
Legacy and Internal Reorganisation
In a resignation statement, Phelps expressed pride in his 20-year tenure, stating it was "an honor to help synthesize the enthusiasm of long-standing Nascar stakeholders." He thanked the France family, Nascar's founders, who hired him from the NFL and promoted him to a role reportedly worth up to $5 million annually with bonuses.
Nascar Chair and CEO Jim France praised Phelps's "transformative legacy," highlighting his role in modernising the race schedule, securing long-term media rights, and leading the sport's return during the Covid-19 pandemic. Phelps also oversaw innovative events like the race inside the Los Angeles Memorial Coliseum and the Chicago street course.
The organisation confirmed it has no immediate plans to appoint a new commissioner. Phelps's responsibilities will be absorbed internally by current President Steve O'Donnell and the existing executive leadership team. O'Donnell had previously moved into the President role when Phelps was promoted.
The trial exposed not only Phelps's private frustrations but also internal tensions within Nascar's leadership. While Phelps and O'Donnell had initially advocated for better revenue-sharing for teams, communications revealed their growing frustration with the board's refusal to make team charters permanent. Phelps ultimately aligned with the France family's position, a shift that coincided with his more pointed private remarks.
During testimony, Phelps expressed regret for his comments about Childress, stating he had apologised and was merely venting frustration. However, for key stakeholders like Johnny Morris, the apology was insufficient, leading directly to the executive's resignation and closing a significant chapter in Nascar's leadership.
