Nascar has been rocked by the sudden departure of its first-ever commissioner, Steve Phelps, who resigned on Tuesday after more than two decades with America's premier stock car racing series. His exit is a direct consequence of damaging text messages made public during a recent federal antitrust trial.
Fallout from a Bitter Legal Battle
Phelps's resignation follows a bruising nine-day antitrust trial last month, which was brought against Nascar by two race teams: 23XI Racing, owned by basketball legend Michael Jordan and driver Denny Hamlin, and Front Row Motorsports. During the discovery process, private communications from Phelps were exposed, revealing his intense frustration during protracted revenue-sharing negotiations with teams.
In the most inflammatory exchange, Phelps referred to Hall of Fame team owner Richard Childress as "a stupid redneck" who "needs to be taken out back and flogged." This comment sparked outrage, particularly from Bass Pro Shops founder Johnny Morris, a major Nascar and Childress Racing supporter. Morris wrote a scathing letter demanding Phelps's removal from his commissioner role.
A Swift Settlement and a Silent Exit
The trial's aftermath moved quickly. Nascar settled the lawsuit with the two teams the day after Morris's letter was published and just two days after Phelps concluded his testimony. Observers noted that Phelps left the witness stand with his jaw clenched and face flushed, avoiding eye contact with team owners as he hurried from the courtroom.
Phelps, who was promoted from president to the newly created commissioner role 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. Nascar stated it has no immediate plans to appoint a new commissioner, with his duties being absorbed internally by president Steve O'Donnell and the existing executive team.
A Legacy of Innovation Overshadowed
In a formal statement, Phelps expressed pride in his 20-year tenure, highlighting his role in transforming Nascar's schedule, securing long-term media rights, and steering the sport through the Covid-19 pandemic as the first major sport to return to competition. He thanked the France family, Nascar's founders, who hired him from the NFL and promoted him to a position reportedly worth up to $5 million annually with bonuses.
Jim France, Nascar's chair and CEO, praised Phelps as "one of Nascar's most impactful leaders," crediting him with a "transformative legacy of innovation." However, this legacy is now indelibly linked to the court revelations. Phelps testified that he regretted his comments about Childress, had apologised, and claimed he was merely venting. He also stated he withdrew from consideration for a similar commissioner role with the PGA Tour after receiving the Nascar promotion.
The episode underscores the intense pressure and fractured relationships within the sport's leadership, particularly around the contentious issue of permanent charters for racing teams. While Phelps initially advocated for more team concessions, he ultimately aligned with the France family's stance, a shift that coincided with his increasingly pointed private communications.
