Tony Stewart’s departure from NASCAR has taken on a dramatic new chapter as his legacy team, Stewart-Haas Racing (SHR), ceased operations after 16 years of competing at the sport’s highest level. Now, Stewart finds himself inadvertently caught in the middle of NASCAR’s ongoing lawsuit with Michael Jordan’s 23XI Racing and Front Row Motorsports (FRM)—a legal battle that could cost him millions.
As SHR’s three remaining charters are entangled in the fallout of the lawsuit, Stewart’s frustrations with NASCAR seem to have hit a boiling point. His shift to NHRA drag racing has been seen as both a strategic pivot and a stinging indictment of NASCAR’s current trajectory.
The NASCAR Lawsuit: Stewart Caught in the Crossfire
At the heart of the lawsuit is a battle over charters and revenue distribution. For years, the Race Team Alliance has pushed for a greater share of media revenue and permanent charters for teams. NASCAR, however, has resisted these demands, further escalating tensions by issuing a 6-hour ultimatum for teams to sign the 2025 charter agreement. Michael Jordan’s 23XI Racing and FRM refused, opting to challenge NASCAR’s practices in court.
This has created a ripple effect, with Stewart’s SHR finding itself in limbo. With no guarantees that its charters will sell under the current climate, Stewart faces potential losses of up to $75 million.
Kenny Wallace and Ken Schrader discussed Stewart’s predicament on the Herm & Schrader Podcast:
“They got caught in the crossfire between 23XI and Front Row and NASCAR,” Schrader noted. Wallace added, “We’re talking close to $75 million at stake. That’s a big pill to swallow.”
Tony Stewart’s Rocky History with NASCAR
Stewart’s frustrations with NASCAR predate the current lawsuit. In 2022, SHR faced a hefty penalty when Cole Custer and Chase Briscoe were accused of race manipulation during a playoff race. NASCAR handed SHR a $200,000 penalty, stripping points and suspending crew chief Mike Shiplett indefinitely.
At the time, Stewart vented his anger publicly, saying:
“I’m so mad at NASCAR right now, I’m not talking about it… Super glad I’m going drag racing this weekend. If it weren’t for appearances, I wouldn’t waste my time at another NASCAR race.”
This frustration has only deepened with the current charter debacle. Speaking to Cars and Culture, Stewart dismissed NASCAR’s charter agreements as a farce:
“The Charter agreements are a joke. If people aren’t smart enough to read between the lines when Rick Hendrick says, ‘I just got tired of arguing with them,’ you’re all missing the big picture.”
NHRA: Stewart’s New Frontier
Stewart’s pivot to NHRA drag racing marks a significant shift in focus. Now a new father and an NHRA competitor, Stewart has found the atmosphere in drag racing far more enjoyable compared to the growing tension in NASCAR.
“The atmosphere is way different,” Stewart said. “And I like the atmosphere there, I have all year.”
While Stewart remains part-owner of SHR, his attention has shifted entirely to NHRA, where he sees more stability and fewer bureaucratic headaches.
The $75 Million Gamble: SHR’s Charters at Risk
As the NASCAR lawsuit continues, the fate of SHR’s three charters remains uncertain. If NASCAR prevails, Stewart and his former team could face significant financial losses. Wallace’s estimate of $25 million per charter underscores just how high the stakes are.
“Tony’s still waiting for his money to roll in,” Wallace remarked. “But this lawsuit puts everything on hold.”
Is Stewart’s Departure a Warning Sign for NASCAR?
Stewart’s exit and public criticisms highlight broader issues within NASCAR, from revenue disputes to governance concerns. For a figure as influential as Stewart to walk away speaks volumes about the challenges the sport faces in retaining its top talents and teams.
With Michael Jordan, 23XI Racing, and FRM challenging NASCAR’s business practices, the lawsuit could reshape the sport—or further alienate key stakeholders like Stewart. As Wallace put it:
“I don’t think NASCAR saw this scenario coming… somebody suing us while dealing with charters at the same time.”
What’s Next?
As the lawsuit unfolds, Stewart’s involvement—however indirect—adds another layer of drama to an already contentious situation. Whether NASCAR can resolve these issues without further alienating former champions like Stewart remains to be seen. For now, Stewart is betting on a brighter future in drag racing, leaving the chaos of NASCAR behind.
