Steve Phelps makes it clear 23XI and FRM’s lawsuit can’t “pull against” NASCAR’s success

Steve Phelps addressed the fallout from NASCAR's legal dispute with 23XI Racing and Front Row Motorsports. Phelps shared that despite certain 'unfortunate' and disparaging comments from both sides, the sport is moving towards a brighter future.

Text exchanges between Phelps and NASCAR president Steve O'Donnell were recently exposed during the litigation process, and much of what was revealed painted a poor picture of upper management. With the 2025 charter deal under scrutiny, NASCAR is being accused of monopolistic practices.

A summary motion was recently filed by the teams to prove the same, while NASCAR responded with a filing of its own. The sanctioning body included letters of declaration from multiple team owners to back their stance. However, the judge dismissed the counterclaim, marking a major blow for the stock car racing series.

In a press conference ahead of the championship finale at Phoenix Raceway, Phelps shared an optimistic take on the situation.

"The interest from private equity has never been higher," he said,"Are there some things that comments that have been made on both sides that are unfortunate? Yeah, other things that you know, steve and I said that we would like to not have made public yes, and I'm sure there things that 23XI and front row also feel that way." "But what I do know is this is an amazing sport. We are a very resilient sport, you know, we have asked our employees, all of them to Steve's point to put your head down and grow this sport. And that's what we've done. And I don't think a lawsuit or anything else is going to ultimately pull against the overall success of the sport as we move forward," he added.

The 2025 charter deal has been made public record due to the upcoming December trial. Findings reveal a $141,000 payout for teams for every race, while drivers earn a lot less when they have a backmarker finish.

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23XI's spending reveals 6x jump in charter value

The court filings tied to 23XI have uncovered a sharp jump in charter value over just four years. The Michael Jordan-led organisation has spent $28 million for a charter in 2024, which is a marked increase from its maiden purchase at $4.7 million.

FRM's filings reveal an even greater pricetag. Back in 2016, the team bought its first charter at $2 million. The team later sold a charter for $7 million in 2020, while its recent purchase was billed at $29 million.

Despite the rising costs, team owner Bob Jenkins also revealed that FRM has lost over $100 million since 2016. Both 23XI and FRM are now contesting as open teams, which further exacerbates their financial situation, since NASCAR's payout for open teams is much lower compared to charter teams.

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Edited by Vignesh Kanna