The NASCAR charter lawsuit may have gotten over in December 2025, but its repercussions are still affecting the sport in January 2026. With the return of the five-strike rule and the allowance of evergreen charters, the shake-up hasn’t been limited to the structure of the sport. Personnel changes have also started taking place, and Steve Phelps has become the first big name to walk away from the sport.
Insider Spills the Beans on Steve Phelps’ Personal Letter to NASCAR Amid Resignation
Ever since the charter lawsuit began, it never looked like a pretty sight for the NASCAR management, given the pile of evidence that stood against them. However, irreparable damage came when Jim France took the stand to testify and gave Judge Kenneth Bell and the jury the exact reason behind the sport not wanting to budge from its stance.
The outside involvement of sponsors as crucial as Bass Pro Shops didn’t help NASCAR’s cause either, further fast-tracking the sport’s decision to settle.
Owing to everything that transpired during the lawsuit, Phelps surprisingly decided to resign from his post as NASCAR Commissioner, and he did so in a personal letter to the sport. And thanks to Sports Business Journal’s Adam Stern, parts of the inside letter have now gone public.
Per the letter, Phelps wrote that the decision to step away from his post was incredibly “difficult.” However, he added that he took the greatest pride in the successes he and his team shared together.
The now ex-Commissioner of NASCARÂ added, “As a team, we have strengthened this sport and energized our entire NASCAR community. We’ve firmly positioned NASCAR as America’s premier motorsport, building a brand with real momentum and creating a future full of possibility. Our teamwork has produced real impact here at home in the United States and around the world. I am incredibly proud of where we stand today, and even more excited about where you will take our sport as it continues to grow.”
Reflecting on his two-decade-long journey in NASCAR, Phelps wrote that the sport provided him with purpose, family, and inspiration. It made him realize what can be achieved when actions are coupled with true talent and commitment from the heart.
He concluded that the choice to resign from his post “comes with many mixed emotions, but also with deep sense of peace and satisfaction. I know that while my pursuits may take me elsewhere, I will always look back fondly on our time together as colleagues and friends.”
Industry and fan reaction to the news of Phelps stepping down as NASCAR Commissioner has been immense. However, many feel that the announcement was only a matter of time, given that the sport had already folded in front of 23XI Racing and Front Row Motorsports in the lawsuit battle.
The belief stems from the leaked texts that showed an unlikable side of Phelps, where he disrespected one of the biggest names in the world of NASCAR. His suggestion of Richard Childress being taken out back and “flogged” took things from bad to worse as NASCAR now heads in a new direction with change being the theme of 2026.
