The aftermath of the NASCAR charter lawsuit continues to send ripples through the organization, with Commissioner Steve Phelps resigning from his post in January 2026. Kenny Wallace, former NASCAR driver, gave his uncompromising assessment of the decision, emphasizing that the resignation was a necessary step, keeping the focus keyword “Kenny Wallace on Phelps resignation” in sharp relief as the community debates the future direction of the sport.
Kenny Wallace Reacts Firmly to Phelps’ Resignation
NASCAR finds itself at a crossroads following the sudden exit of Steve Phelps after more than 20 years of service. Phelps, age 63, had only recently taken the commissioner’s role, succeeding Steve O’Donnell, and was overseeing long-term strategies and pivotal decisions for NASCAR on both national and international levels. Now, with the seat vacant, observers are questioning how the organization will fill the leadership void.
The NASCAR community is clearly split in reaction to Phelps’ departure. Some argue that he was singled out as a scapegoat in the wake of the charter lawsuit’s damaging fallout. This landmark lawsuit not only altered how the company operates but also set off a chain reaction within its personnel ranks. Amidst this climate, Kenny Wallace chose not to mince words, voicing his unfiltered perspective on the matter and underscoring his discontent with the status quo.
After the news became public, Wallace took to social platform X, issuing a concise verdict: “It had to be done.” – Kenny Wallace, former NASCAR driver.
Why Wallace Believes Change Was Needed
Wallace contends that letting Phelps go is part of NASCAR’s effort to repair itself following the turbulence caused by the charter lawsuit. He insists that this leadership shake-up was the only way for the organization to chart a new course and begin the process of recovery. Wallace made it clear he did not intend to overreact emotionally and instead stuck to a blunt, measured response about the situation, lending weight to his reasoning for supporting the move.
This development coincides with gathering calls from both insiders and fans for sweeping changes among the sport’s senior officials, such as CEO Jim France. There is mounting speculation about Ben Kennedy potentially stepping into a more prominent role, with some supporters expressing concern that Phelps’ departure could ultimately harm NASCAR’s stability. Multiple insiders point to Phelps as one of the few top executives advocating for significant reforms—like evergreen charters—and working to influence Jim France’s decisions on key issues.
Controversy and the Path Forward for NASCAR Leadership
While some believe Phelps’ removal disrupts continuity, recent controversies have added to the urgency for change. Allegations surfaced that Phelps referred to Richard Childress, a legendary figure in the sport, with disrespectful language, calling him “a stupid redneck” and suggesting he ought to be “flogged” behind the scenes. These remarks, once leaked, severely damaged Phelps’ reputation and left NASCAR with few options but to enact a leadership change.
The sport now faces a crucial transition period, with NASCAR leadership needing to demonstrate unity and forward-thinking as it recovers from both legal battles and internal disputes. The choices made over the coming months will determine whether NASCAR can regain the trust of its community, repair internal rifts, and address calls for reform made by voices like Kenny Wallace. The impact of this leadership shake-up, particularly with prominent figures like Jim France and potential rising stars such as Ben Kennedy in the mix, will likely shape NASCAR’s direction for years to come.
Steve Phelps is OUT as #NASCAR Commish@Kenny_Wallace discusses pic.twitter.com/kvBjejnA8V
— Kenny Wallace Media (@KWallaceShow) January 6, 2026
