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NASCAR Commissioner Steve Phelps announced Tuesday he would step down from his post in the wake of two racing teams, including one owned by Michael Jordan, filing an antitrust lawsuit against the company.
The suit also unearthed inflammatory text messages he sent during contentious revenue-sharing negotiations. Jordan’s 23XI Racing and NASCAR settled their suit last month.
But the top executive at NASCAR was deeply bruised during the trial — and the discovery process leading into it — when communications he exchanged with top leadership were exposed. In one exchange, Phelps called Hall of Fame team owner Richard Childress “a stupid redneck” who “needs to be taken out back and flogged.”
Michael Jordan, NBA Hall of Famer and co-owner of 23XI Racing looks on during the NASCAR Cup Series FireKeepers Casino 400 at Michigan International Speedway on Aug. 18, 2024 in Brooklyn, Michigan. (Logan Riely/Getty Images)
That led Bass Pro Shops founder Johnny Morris, an ardent supporter of both NASCAR and Richard Childress Racing, to write a letter demanding Phelps’ removal as commissioner.
“As a lifelong race fan, it gives me immense pride to have served as NASCAR’s first Commissioner and to lead our great sport through so many incredible challenges, opportunities and firsts over my 20 years,” Phelps said in a statement. “Our sport is built on the passion of our fans, the dedication of our teams and partners, and the commitment of our wonderful employees.
“It has been an honor to help synthesize the enthusiasm of long-standing NASCAR stakeholders with that of new entrants to our ecosystem, such as media partners, auto manufacturers, track operators, and incredible racing talent.”
Phelps will leave the company at the end of the month, ahead of the start of the season. He was named NASCAR’s first commissioner last season after a courting process for the same role by the PGA Tour. The opportunity with the PGA was revealed during December testimony in the trial.
Michael Jordan, center, and Curtis Polk, left, co-owners of 23XI Racing, watch during qualifying beside 23XI Racing President Steve Lauletta, right, for a NASCAR Cup Series Championship auto race, Nov. 9, 2024, in Avondale, Ariz. (AP Photo/John Locher, file)
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“Steve will forever be remembered as one of NASCAR’s most impactful leaders,” said Jim France, the NASCAR chairman and CEO. “For decades he has worked tirelessly to thrill fans, support teams and execute a vision for the sport that has treated us all to some of the greatest moments in our nearly 80-year history.”
Front Row Motorsports and 23XI Racing filed their lawsuit last year after refusing to sign agreements on the new charter offers NASCAR presented in September 2024. Teams had until the end of the day to sign the 112-page document, which guarantees access to top-level Cup Series races and a revenue stream, and 13 of 15 organizations reluctantly agreed. Jordan and Jenkins sued instead and raced most of the 2025 season unchartered.
The financial terms of the settlement were not disclosed, but an economist earlier testified that 23XI Racing and Front Row Motorsports were owed more than $300 million in damages.
All teams felt the previous revenue-sharing agreement was unfair, and more than two years of bitter negotiations led to NASCAR’s final offer, which was described by the teams as “take it or leave it.” The teams believed the new agreement lacked all four of their key demands, most importantly the charters becoming permanent instead of renewable.
Co-owners of 23XI Racing, Denny Hamlin, driver of the #11 FedEx One Rate Toyota, and NBA Hall of Famer, Michael Jordan talk on the grid after the NASCAR Cup Series YellaWood 500 at Talladega Superspeedway on October 06, 2024, in Talladega, Alabama. (Chris Graythen/Getty Images)
The settlement followed eight days of testimony during which the Florida-based France family, the founders and private owners of NASCAR, were shown to be inflexible in making the charters permanent.
Fox News’ Jackson Thompson and The Associated Press contributed to this report.
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