NASCAR Commissioner Steve Phelps Resigns After Michael Jordan Lawsuit

NASCAR Commissioner Steve Phelps announced Tuesday that he would step down from his position in the wake of two race teams, including one owned by Michael Jordan, filing an antitrust lawsuit against the company.

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

But the top executive at NASCAR was deeply hurt during the trial — and the discovery process leading into it — when communications he exchanged with senior management were revealed. In one exchange, Phelps called Hall of Fame team owner Richard Childress “a stupid redneck” who “needs to be taken back and whipped.”

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That prompted Bass Pro Shops founder Johnny Morris, an avid supporter of both NASCAR and Richard Childress Racing, to write a letter demanding Phelps’ dismissal as commissioner.

“As a lifelong race fan, it gives me tremendous pride to have served as NASCAR’s first commissioner and to lead our great sport through so many incredible challenges, opportunities and first-place finishes throughout 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 longtime NASCAR stakeholders with that of new participants in our ecosystem, such as media partners, automakers, 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 courtship for the same role by the PGA Tour. The possibility of 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 next to 23XI Racing president Steve Lauletta, right, for a NASCAR Cup Series Championship auto race on 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 influential leaders,” said Jim France, NASCAR chairman and CEO. “For decades, he has worked tirelessly to excite 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. The 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 gladly accepted. Jordan and Jenkins instead sued and ran most of the 2025 season without a charter.

The financial terms of the settlement were not disclosed, but an economist previously 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 that the new agreement lacked all four of their key demands, most importantly that the charters be made permanent rather than renewable.

23XI Racing co-owners Denny Hamlin, driving the #11 FedEx One Rate Toyota, and NBA Hall of Famer Michael Jordan talk on the gridiron after the NASCAR Cup Series YellaWood 500 at Talladega Superspeedway on October 6, 2024 in Talladega, Alabama. (Chris Graythen/Getty Images)

The settlement followed eight days of testimony, during which Florida-based France familythe founders and private owners of NASCAR, proved inflexible in making the charters permanent.