“F— the teams, dictatorship, motorsport, redneck, southern, tiny sport.” Those were the explosive words NASCAR President Steve O’Donnell fired off in a leaked 2023 message. It shook the industry when they surfaced in September and exposed just how strained the relationship between NASCAR leadership and race teams had become. At the time, many believed that was the peak of the NASCAR lawsuit drama. It couldn’t possibly get uglier than this, right?

But now, with a fresh wave of leaked messages tied to NASCAR executive Steve Phelps, the situation has grown even more volatile. And according to a NASCAR insider, the damage runs far deeper than fans realize. Because behind closed doors, NASCAR isn’t just frustrated but is hurt where it pains the most.

A lawsuit crisis that’s cutting deeper than anyone expected

When speaking of the latest drama in the NASCAR lawsuit, insider Kenny Wallace didn’t sugarcoat it.

“They are wounded, and they are not taking this in any type of light fashion. It is a devastating blow to them. It is as serious as it can get. There are a lot of sponsors in NASCAR that do not like what’s going on here,” he explained.

According to Wallace, the leaked emails and the lawsuit fallout have shaken NASCAR at a level insiders aren’t used to seeing. Sponsors are unhappy, trust is slipping, and the internal mood is far from steady. The word “serious” doesn’t even begin to cover it.

He was referring to the bombshell that sent the garage into full disbelief. “Childress needs to be taken out back and flogged. He’s a stupid redneck who owes his entire fortune to NASCAR.” These words, allegedly from Steve Phelps, surfaced just days ago. It was another gut punch in an already chaotic stretch. If the O’Donnell leak raised eyebrows, this one set the entire industry on fire. Team owners and fans alike were left questioning how deep the animosity inside NASCAR HQ truly runs.

But the turmoil isn’t limited to executives. It’s now pulling the biggest team owners into the legal battlefield, whether they want to be there or not. Judge Kenneth Bell ruled that Roger Penske and Rick Hendrick must sit for in-person depositions in the 23XI Racing and Front Row Motorsports antitrust case. No Zoom. No limits or protective guardrails either. Just full questioning.

Wallace explained the magnitude of the power we’re talking about here.

“People like that [Penske and Hendrick], they can get out of s—. Yeah. Well, they couldn’t get out of this. Judge Bell said, ‘No, Roger Penske and Rick Hendrick, you’re going to come here, and you’re going to sit in here, and you’re going to answer our questions.'”

This decision came after both owners, along with NASCAR, attempted to narrow their testimony, citing concerns over being forced to disclose financial information. NASCAR even supported the request, hoping to restrict the scope. But 23XI and Front Row pushed back, arguing that the owners shouldn’t be shielded after already agreeing to testify at the December 1 trial in Charlotte. Judge Bell agreed.

And in doing so, he signaled something clear: whether you’re a billionaire team owner or a sanctioning-body executive, no one is escaping the gravity of this fight.

Meanwhile, from the plaintiff’s side, Denny Hamlin took a sarcastic jab at NASCAR and ESPN.

Denny Hamlin isn’t happy with NASCAR’s lawsuit reporting

If NASCAR’s courtroom battle wasn’t explosive enough, the media narrative around it just added fuel to the fire. On Sunday night, a fresh controversy erupted when Denny Hamlin, 23XI Racing co-owner and one of the central figures in the antitrust fight, publicly called out ESPN over its framing of the trial.

ESPN published a preview story ahead of Monday’s proceedings with a headline that immediately set Hamlin off.

“23XI vs. NASCAR trial: Why Jordan wants to tear up stock car racing.”

To Hamlin, the headline wasn’t just misleading. Rather, it was a direct attempt to twist the team’s intentions and paint Michael Jordan as a wrecking ball threatening the sport. Hamlin took to X with a pointed response:

“Please give credit to Mike Forde for helping you write this propaganda piece that they want pushed to switch the narrative. Continuous lies about our stance, NASCAR’s motives for its actions, and continued message from the sanctioning body that everything is fine. Our fans know better.”

Ryan McGee of ESPN entered the conversation. “Tried to hit it down the middle, thus all the “(Fill in the blank) believes…” and “(Fill in the blank) argues…” Sorry you disagree, but thanks for reading. See you Monday,” McGee replied.

But Hamlin doubled down, aiming not just at ESPN, but at the entire media ecosystem surrounding NASCAR.

“Our fans have been brainwashed with their talking points for decades. Narratives pushed by media who are intimidated by them. Lies are over starting Monday morning. It’s time for the truth. It’s time for change.”

In a battle already fueled by leaked messages, legal tension, and strained relationships between teams and the sanctioning body, Hamlin’s media callout adds yet another layer. As the trial begins, the fight isn’t just happening in a courtroom. Rather, it’s also unfolding in headlines, on social platforms, and in front of a fanbase watching the entire sport get pulled into unfamiliar territory.