CHARLOTTE, N.C. (AP) — The fallout from NASCAR’s federal antitrust trial continued into the new year as NASCAR Commissioner Steve Phelps on Tuesday announced his resignation after more than 20 years with the top racing series in the United States.
His resignation comes after last month’s trial in which inflammatory texts Phelps sent during contentious revenue-sharing negotiations were revealed. Phelps will leave the company at the end of the month, ahead of the start of the first exhibition race of the season on Feb. 1.
He was named NASCAR’s first commissioner last season after a courting process for the same role by the PGA golf tour. The opportunity with the PGA was revealed during December testimony of the antitrust trial brought by two race teams against NASCAR and Phelps testified he pulled out of consideration for that role upon the NASCAR promotion from president.
The top executive at NASCAR was deeply bruised during the trial — and the discovery process leading into it — when communications he exchanged with his leadership team was 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.”
That led Bass Pro Shops founder Johnny Morris, an ardent supporter of both NASCAR and Richard Childress Racing, to write a damning letter demanding Phelps’ removal as commissioner.
After he concluded his testimony in the nine-day trial last month, Phelps left the stand with his jaw clenched, his face red, and he made no eye contact with NASCAR’s owners as he briskly headed directly out of the courtroom. His fiancée trailed after him as he even refused to look in her direction.
NASCAR settled the lawsuit with 23XI Racing, owned by Michael Jordan and Denny Hamlin, and Front Row Motorsports, owned by Bob Jenkins, the day after Morris’ letter went public and two days after Phelps’ testimony.
“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.”
He added he will seek “new pursuits in sports and other industries” and thanked colleagues, friends and fans that “played such an important and motivational role in my career.”
He also thanked the France family, the founders and owners of NASCAR, who hired him away from the NFL two decades ago and promoted him to a position that could have netted him $5 million annually with bonuses.
“Words cannot fully convey the deep appreciation I have for this life-changing experience, for the trust of the France family, and for having a place in NASCAR’s amazing history,” Phelps concluded.
Phelps is a native of Vermont, where as a child he became a fan of local racing. He graduated from both the University of Vermont, where he set the school record in the 800 meters, and Boston College, where he earned a masters in business administration.
NASCAR thanks Phelps for leadership
NASCAR said that Phelps’ leadership transformed a stale schedule with new events, “bucket list fan experiences,” and reshaped its strategic vision. Phelps was also lauded for expanding NASCAR’s international footprint, securing long-term media rights and charter agreements, and building a leadership team that is focused on building the future of stock car racing with fan experience at its core.
“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.”
Phelps also led NASCAR as it became the first sport to return to competition during the COVID-19 shutdown, as well as developing races inside the Los Angeles Memorial Coliseum and the downtown streets of Chicago.
“Steve leaves NASCAR with a transformative legacy of innovation and collaboration with an unrelenting growth mindset,” France added.
Lesa France Kennedy, the NASCAR executive vice chair, said “while his career may take him elsewhere, he’ll always have a place in our NASCAR family.”
NASCAR did not announce any additional leadership or personnel changes and said there are no immediate plans to replace him as commissioner or to seek outside leadership. His responsibilities will be delegated internally through NASCAR’s president — now Steve O’Donnell — and the executive leadership team.
O’Donnell moved into Phelps’ role as president upon Phelps’ promotion to commissioner. Although the two were mostly in favor of improving revenue-sharing for the teams in over two-plus years of bitter negotiations, the discovery process showed their growing frustration with NASCAR’s board of directors over its refusal to make the charters permanent.
The Childress texts
Phelps appeared to be an advocate for more concessions for the race teams, but as the process dragged on, he ultimately fell in line with the France family and that’s when his communications became more pointed. He testified he felt the teams had received a fair deal on the new charter agreements.
But it was the attacks on Childress that drew the most attention and Phelps said in court he regretted his words, had apologized to Childress and explained he was venting out of frustration.
It wasn’t good enough for Morris, a longtime backer of Childress teams.
“We can’t help but wonder what would happen if Major League Baseball brought in a new commissioner and he or she trash-talked one of the true legends who built the game like Willie Mays, Hank Aaron, Ted Williams, Mickey Mantle or Babe Ruth?” Morris wrote. “Such blatant disrespect would probably not sit well with the fans — such a commissioner most likely wouldn’t, or shouldn’t, keep his or her job for very long!”
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