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Unsealed text messages, revealed through fact discovery in the antitrust lawsuit filed by 23XI Racing and Front Row Motorsports against NASCAR, have brought to light sharp criticisms from NASCAR President Steve Phelps regarding prominent team owner Richard Childress. The communications, which occurred during a 2023 meeting with team owners, indicate a significant lack of professional regard from Phelps towards the six-time Cup Series championship-winning owner.
The context for these exchanges was the ongoing negotiations surrounding charter extensions and contraction. Phelps and NASCAR’s Chief Media & Revenue Officer, Brian Herbst, were reportedly using these discussions to underscore the potential vulnerabilities of the sport’s future broadcast rights agreements, emphasizing the necessity of industry-wide unity over the coming decade. During this period, Herbst was providing Phelps with real-time updates from the team owner meeting via text message.
The unearthed messages show a pattern of Phelps repeatedly targeting Childress with insults. This animosity appears to stem from comments made by Childress during a SiriusXM NASCAR Radio interview, where he voiced concerns about the charter negotiations that were evidently not well-received by NASCAR leadership.
Specifically, Childress had raised questions about the economics of the new car, the Next Gen, stating that he could construct 14 previous-generation Gen6 cars for the cost of seven Next Gen models. When pressed on whether the impending television deal could be viewed positively, Childress’s rhetorical question, “for who?” apparently struck a nerve within NASCAR’s executive suite.
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The text messages quoted in the unsealed documents include statements such as: "Childress is an idiot. If they don’t like the state of the sport, sell your charter and get out." Another message reiterates the sentiment: "Did I mention Childress was an idiot?" Phelps further elaborated on his view of Childress, writing, "If he’s that angry (and apparently he is) sign your charter extension and sell. He’s not smart, is a dinosaur, and a malcontent. He’s worth a couple hundred million dollars – every dollar associated with nascar in some fashion. Total ass-clown." The most incendiary remark attributed to Phelps in the released texts states, "Childress needs to be taken out back and flogged. He’s a stupid redneck who owes his entire fortune to nascar."
Richard Childress, a legendary figure in NASCAR, has been a team owner since 1969 and has overseen a remarkable legacy. His eponymous team, Richard Childress Racing (RCR), has achieved 112 Cup Series wins, including six championships with drivers Dale Earnhardt Sr. (six-time champion), Bobby Labonte, and Kevin Harvick. RCR has been a cornerstone of the sport for decades, contributing significantly to its growth and cultural identity. Childress himself is often regarded as a champion of the traditional NASCAR ethos, a perspective that has sometimes placed him at odds with the sanctioning body’s evolving strategies and business models.
The antitrust lawsuit, filed by 23XI Racing, co-owned by Denny Hamlin and Michael Jordan, and Front Row Motorsports, owned by Bob Jenkins, alleges that NASCAR’s charter system unfairly limits competition and depresses the value of team assets. The system, introduced in 2016, grants teams guaranteed starting spots in races and a share of the purse, but also imposes restrictions and is intended to provide stability. However, the plaintiffs argue that NASCAR has maintained excessive control over the system, hindering innovation and profitability for team owners.
The unsealed text messages, by offering a glimpse into the private opinions of NASCAR’s top executive, add a layer of personal conflict to the ongoing legal and business disputes. The language used by Phelps suggests a deep-seated frustration and disdain for Childress’s critical stance on the sport’s direction, particularly concerning the financial implications for established teams.
The timing of these revelations is significant, occurring as NASCAR grapples with the complexities of its charter system and prepares for the negotiation of its next major media rights deal, which is crucial for the financial health of both the sanctioning body and its participating teams. The charter system is intrinsically linked to the value of these media rights, as it aims to provide a stable and predictable revenue stream for team owners.
The comments attributed to Phelps also highlight a potential disconnect between NASCAR’s leadership and some of its most experienced and successful participants. Childress, as a veteran owner with a deep understanding of the sport’s history and a significant financial stake in its success, represents a segment of the ownership group that has expressed concerns about the current trajectory. His questioning of the value proposition for owners, especially in light of the substantial investment required for the Next Gen platform, is a perspective that many in the garage area may share, even if not articulated with the same directness as Phelps’ private messages.
The lawsuit’s proceedings are expected to shed further light on the internal dynamics and decision-making processes within NASCAR. The inclusion of these text messages suggests that the legal battle is delving into the personal and professional relationships that shape the sport’s governance. The characterizations of Childress by Phelps, if proven to be representative of a broader sentiment within NASCAR’s leadership, could be interpreted as indicative of an environment where dissenting opinions are met with personal animosity rather than constructive dialogue.
NASCAR has historically faced challenges in balancing the interests of its various stakeholders, including team owners, manufacturers, sponsors, and fans. The charter system was designed, in part, to address some of the historical volatility and financial uncertainties faced by team owners. However, as the sport evolves, so too do the perspectives on the efficacy and fairness of such systems.
The public scrutiny generated by these unsealed communications is likely to intensify the pressure on NASCAR to address the underlying issues raised by the lawsuit and by owners like Richard Childress. The perception of how NASCAR leadership interacts with its team owners could have a tangible impact on the sport’s reputation and its ability to foster collaborative relationships.
Richard Childress Racing, with its storied past, continues to compete in the NASCAR Cup Series. The team has fielded drivers such as Austin Dillon and Kyle Busch in recent seasons. Busch, a two-time Cup Series champion, joined RCR in 2023, aiming to add to his impressive career win total. The team’s performance on the track, while a primary focus, is intrinsically linked to the broader business and governance structures of NASCAR.
The current NASCAR Cup Series season is underway, with teams competing across a diverse schedule of oval tracks and road courses. The economic health of the teams is paramount to their ability to field competitive entries and attract top talent. The charter system’s role in this ecosystem remains a central point of contention.
The legal proceedings in the antitrust lawsuit are ongoing, and further revelations are possible as the discovery process continues. The unsealed text messages from Steve Phelps represent a significant development, offering an unfiltered view of executive sentiment and potentially illuminating the motivations and tensions underlying the current disputes within NASCAR. The ultimate outcome of the lawsuit, and the ongoing dialogue between NASCAR and its team owners, will shape the future landscape of stock car racing.
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