Phelps was implicated in the saga with 23XI Racing and Front Row Motorsports, in which damaging texts came to light during the discovery process.
Those messages included an ugly series of messages directed at NASCAR Cup Series team owner Richard Childress, who Pehlps said needed to be “taken out back and flogged” and was “a stupid redneck who owes his entire fortune to NASCAR.”
The fallout from those texts drew a terse response from the NASCAR community, including Childress and one of the sport’s biggest sponsors, Bass Pro Shops.
The feud between NASCAR, 23XI Racing and Front Row Motorsports was ultimately settled.
Now, Phelps has announced his exit a little under a month out from the new NASCAR Cup Series season beginning.
In a statement, NASCAR said the 63-year-old had made the “personal decision” to step away at the end of January.
NASCAR hailed him for his “leadership and a strategic vision that delivered significant growth and lasting innovation, championed equity” as well as “social justice initiatives, and created industry-wide opportunities for all stakeholders.”
Phelps, who has been with NASCAR since 2005, was lauded for the international expansion of stock car racing and his role in the recent media rights deals with FOX, NBC, Amazon, TNT Sports, and The CW.
He was also key in the establishment of the controversial charter agreement. Other achievements include the merger with ISC (International Speedway Corporation) and the launch of the latest Next Gen chassis for the NASCAR Cup Series.
“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,” said Steve Phelps.
“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 honour to help synthesise 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.
“As I embark on new pursuits in sports and other industries, I want to thank the many colleagues, friends, and especially the fans that have played such an important and motivational role in my career.
“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.”
As the commissioner, Phelps oversaw NASCAR’s operations, the IMSA SportsCar Championship, and the 15 circuits owned or operated by NASCAR.
NASCAR CEO and chairman Jim France labelled Phelps “one of NASCAR’s most impactful leaders” who will be remembered forever by the sport.
“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,” said France.
“It’s been an honor to work alongside him in achieving the impossible like being the first sport to return during COVID, or in delivering the unimaginable by launching new races in the LA Memorial Coliseum and NASCAR’s first-ever street race in downtown Chicago.
“Steve leaves NASCAR with a transformative legacy of innovation and collaboration with an unrelenting growth mindset.”
NASCAR said it has no plans to replace Phelps or to seek outside leadership. Phelps’ responsibilities will be delegated to the president and executive leadership team.
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