Kenny Wallace on NASCAR Controversy: Why Steve Phelps Quit

Kenny Wallace on NASCAR controversy intensified after Steve Phelps, the first-ever commissioner of NASCAR, resigned ahead of the 2026 season. Phelps, who previously served as president since 2018, leaves unexpectedly, with his duties now being distributed among senior executives as the sport seeks to address the fallout.

The central issue leading to Phelps’ departure emerged from text messages disclosed during ongoing antitrust lawsuit proceedings involving NASCAR and teams 23XI Racing and Front Row Motorsports. In these messages, Phelps directed harsh criticism and offensive remarks toward Richard Childress, a veteran figure respected across the sport. The revelations triggered a widespread backlash, damaging NASCAR’s public image and stirring unrest among sponsors, drivers, and long-time supporters.

Kenny Wallace Calls Phelps a “Scapegoat” in Effort to Restore NASCAR’s Reputation

Reacting publicly, former NASCAR driver Kenny Wallace released a YouTube video evaluating Phelps’ situation and the broader consequences for the industry. Wallace argued that the executive became the scapegoat in an attempt to resolve ongoing internal conflicts and appease influential figures in the NASCAR community. He drew attention to comments by Bass Pro Shops CEO Johnny Morris, a close friend of Richard Childress and a significant NASCAR sponsor since 1998, who openly criticized Phelps after the contents of the texts were exposed.

“…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!”

– Johnny Morris, CEO of Bass Pro Shops

Kenny Wallace
Image of: Kenny Wallace

Wallace explained that the decision to relieve Phelps of his role was likely driven by NASCAR’s need to soothe agitated sponsors and influential insiders rather than a desire for broad organizational change. Bass Pro Shops’ long-term sponsorship of Richard Childress Racing highlighted the urgency to mend relations and repair the organization’s tarnished reputation.

Challenges Inside NASCAR and the Path Forward

Kenny Wallace continued to weigh in on the situation, pointing to the uniquely uncomfortable environment Phelps would have faced if he had continued.

“So, NASCAR has an image issue. I don’t think Steve Phelps could have walked around the pit area. Could you imagine Steve Phelps the first week at Daytona? How could he have walked around the garage area?”

– Kenny Wallace, former NASCAR driver

Wallace described an atmosphere where both drivers and crew members would likely have found it difficult to interact with Phelps, emphasizing that the resignation was perhaps necessary for the organization and its people to move forward.

Despite the negative headlines, Wallace was careful to acknowledge that Phelps had contributed positively to NASCAR during his tenure and cautioned against letting a single failing overshadow years of service. Still, he acknowledged that events over recent seasons left the organization with little choice but to seek new leadership as the 2026 season approaches.

As NASCAR braces for significant leadership changes and tries to overcome this damaging episode, fresh starts and the hope for healing relationships appear to be on the horizon. The incident underscores how delicate relationships among executives, drivers like Richard Childress, sponsors such as Bass Pro Shops, and the broader NASCAR community remain crucial for the sport’s future stability and public image.

YouTube video

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