NASCAR Commissioner Steve Phelps resigns after Michael Jordan trial

NASCAR Commissioner Steve Phelps announced Tuesday that he will resign from his post following two racing teams, including one owned by Michael Jordan, filing an antitrust lawsuit against the company.

The suit also uncovered inflammatory text messages he sent during contentious revenue-sharing negotiations. Jordan’s 23XI Racing and NASCAR settled their dispute last month.

But NASCAR’s top executive was deeply bruised during the trial — and the discovery process that led to it — when communications he exchanged with top executives came to light. In one exchange, Phelps called Hall of Fame team owner Richard Childress a “stupid redneck” who “needs to be taken out and whipped.”

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This led Bass Pro Shops founder Johnny Morris, an ardent supporter of NASCAR and Richard Childress Racing, to write a letter demanding Phelps’ removal as commissioner.

“As a lifelong racing 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 during 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 was an honor to help synthesize the enthusiasm of longtime NASCAR stakeholders with that of newcomers to our ecosystem, such as media partners, automakers, track operators and incredible racing talent.”

Phelps will leave the company at the end of the month, before the season begins. He was named NASCAR’s first commissioner last season after a court proceeding for the same role by the PGA Tour. The opportunity with the PGA was revealed during trial testimony in December.

Michael Jordan, center, and Curtis Polk, left, co-owners of 23XI Racing, look on during qualifying alongside 23XI Racing President Steve Lauletta, right, for a NASCAR Cup Series championship auto race, Nov. 9, 2024, in Avondale, Arizona. (AP Photo/John Locher, file)

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“Steve will forever be remembered as one of NASCAR’s most influential executives,” said Jim France, NASCAR Chairman and CEO. “For decades, he worked tirelessly to delight fans, support teams and implement a vision for the sport that gave us all some of the greatest moments in our nearly 80-year history.”

Front Row Motorsports and 23XI Racing filed their suit last year after refusing to sign agreements on new NASCAR lease deals 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 the 15 organizations reluctantly agreed. Jordan and Jenkins instead filed a lawsuit and raced most of the 2025 season without a card.

Financial terms of the settlement were not disclosed, but an economist said earlier 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 tough negotiations led to NASCAR’s final offer, which was described by the teams as “take it or leave it.” The teams believed that the new agreement did not meet their four main demands, notably that the charters become permanent instead of being renewable.

23XI Racing co-owners Denny Hamlin, driver of the No. 11 FedEx One Rate Toyota, and NBA Hall of Famer Michael Jordan chat on the grid after the NASCAR Cup Series YellaWood 500 at Talladega Superspeedway on October 6, 2024 in Talladega, Alabama. (Chris Graythen/Getty Images)

The settlement follows eight days of testimony during which the French family based in Floridathe founders and private owners of NASCAR, have been adamant about making the charters permanent.