NASCAR has been hit by a leadership bombshell, as Steve Phelps resigns just weeks after the sport settled a damaging antitrust lawsuit led by Michael Jordan.
Phelps will leave his role at the end of the month, ending a 20-year run inside NASCAR.
The timing raised eyebrows immediately, coming less than a month after the organisation reached a last-minute settlement following a bruising federal trial.
In a short statement released on Tuesday, Phelps thanked his “many colleagues, friends, and especially the fans” he worked with during his time at NASCAR.
The sport confirmed his departure but avoided linking it directly to the lawsuit.
Lawsuit exposed NASCAR’s internal fractures
The lawsuit, brought by two teams including Jordan’s 23XI Racing, accused NASCAR of operating as a monopolistic bully. Eight days of testimony put the organisation under heavy scrutiny and shifted momentum firmly against it.
Jordan testified early in the trial and framed the case as a necessary challenge to the sport’s power structure.
“Today’s a good day,” Jordan said after the settlement was announced in December.
The trial also revealed internal NASCAR communications that further inflamed tensions. During discovery, messages showed Phelps referring to Hall of Fame team owner Richard Childress as a “redneck” and using other derogatory language.
That revelation landed badly.
Childress maintains close ties with Bass Pro Shops, whose founder Johnny Morris later sent a letter calling for Phelps to be removed. The letter became public shortly before NASCAR agreed to settle.
Charter system overhaul follows courtroom defeat
The settlement triggered a major shift in NASCAR’s structure. Charters, which guarantee teams entry into every Cup Series race and a fixed share of revenue, will now become permanent.
Jordan’s 23XI Racing and Front Row Motorsports will also regain their combined six charters for the 2026 season.
U.S. District Judge Kenneth Bell welcomed the resolution after overseeing failed settlement talks earlier in the process.
“I believe this is great for NASCAR,” Bell told the court. “Great for the future of NASCAR. Great for the teams and ultimately great for the fans.”
An economist previously testified that NASCAR owed more than $1 billion in withheld revenue to chartered teams between 2021 and 2024.
