The antitrust lawsuit filed by 23XI Racing and Front Row Motorsports delivered a long list of grievances, from revenue-sharing inequities to NASCAR’s alleged attempts to tighten its grip on the stock-car landscape. Then came last month’s leaked text messages between Steve Phelps, Steve O’Donnell, and other senior executives, a reveal that pulled the curtain back on NASCAR’s internal worries.
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Those messages showed, in plain language, that the rise of Tony Stewart’s SRX Series had struck a nerve among the senior officials. And while Denny Hamlin, Michael Jordan, and Bob Jenkins continue to push for a level playing field, longtime NASCAR figure Kenny Wallace can see why NASCAR saw SRX as a potential thorn in its side.
On Chase Holden’s podcast, Wallace didn’t mince words as he reacted to the leaks.
The texts, which date back roughly two years, exposed conflicts tied to NASCAR’s effort to undercut SRX. Wallace tried to explain why NASCAR executives took the stance they did. The series had been pitched as a showcase for retired drivers, but it quickly drew active Cup stars, sparking tension during a critical media-rights negotiation cycle.
As Wallace explained, “NASCAR was working on a contract. So SRX was supposed to be for us older retired drivers… Then all of a sudden Denny Hamlin, then our main drivers were going over there and they were on ESPN, their competitor. And the ratings were bigger than the Truck and Xfinity.”
He added that NASCAR viewed the situation as drivers unintentionally hurting the sport’s leverage.
“The reason they want to put a knife in SRX is because their drivers were hurting them by going over there while NASCAR was negotiating for a billion dollar a year contract. So, I understood that one. I said, ‘Okay, I get that.'” he continued.
O’Donnell later testified that he investigated the matter and learned that former Stewart-Haas Racing executive Brett Frood had confirmed SRX’s original pitch: a series focused on retired and inactive drivers, not a direct competitor to NASCAR.
The comparison to the old IROC format made sense, considering SRX initially featured Tony Stewart, Tony Kanaan, Bobby Labonte, Helio Castroneves, Ernie Francis Jr., Paul Tracy, Bill Elliott, Willy T. Ribbs, Michael Waltrip, and Marco Andretti.
The dynamic shifted when active Cup drivers joined. Chase Elliott entered the fray in the inaugural season, followed by renowned names such as Denny Hamlin, Justin Marks, Kyle Busch, Daniel Suarez, Kevin Harvick, Ryan Blaney, Chase Briscoe, Brad Keselowski, Austin Dillon, and Ryan Preece. Their star power gave SRX a brighter spotlight and intensified NASCAR’s anxiety.
“I thought this looked more and more like NASCAR,” O’Donnell testified. He admitted concern over the optics and timing, especially given that teams had vowed to unify during media-rights and charter negotiations, yet were simultaneously competing in another series. NASCAR even invoked its exclusivity clause with Speedway Motorsports to prevent SRX from racing at one of its venues.
