At the yearly NASCAR “State of the Sport” news conference, President Steve O’Donnell and Executive Vice President Steve Phelps outlined their vision for the sport’s upcoming seasons. They discussed cost caps, more balanced playoffs, disputes over horsepower, and fans’ opinions.
The championship will be between Denny Hamlin, Chase Briscoe, William Byron, and Kyle Larson this year. O’Donnell emphasized how they were going to make the sport better while still keeping what made it great. Phelps talked mostly about TV ratings and NASCAR’s expansion plans.
A New Cost Model for Fairer Racing
O’Donnell talked about creating a flexible cost-cap system to help teams manage expenses. Instead of forcing all teams to spend the same amount, NASCAR could set a base cost to run a car. Teams could then decide how to spend their money. “What could a model look like where ‘Here’s the cost to go run a car, and we all agree on you can decide where you want to put your resources.’Is that on pit road? Is that on engineering?” O’Donnell asked.
This idea could help smaller teams compete with giants like Hendrick Motorsports and Joe Gibbs Racing. It would also stop costs from climbing too high while still letting teams innovate. The plan is still under discussion, but it shows NASCAR wants fairer competition without hurting creativity.
NASCAR Playoff Changes and Fan Concerns
O’Donnell also talked about playoff fairness. Some fans and drivers say the current format depends too much on one race. “Making sure a driver who has delivered all season long can be named a champion and not have something come down to one race,” O’Donnell said.
He added that both he and Phelps have “certainly heard the industry” and want to “balance great moments” with “what the fans and members of the community are asking for.” Fan input is key to future changes, O’Donnell said: “Our fan base is very vocal.”
Phelps also addressed TV ratings. “We knew we were going to have a reset because of the new TV deal,” he said. NASCAR expected a 14–15% drop, and “the viewership is down 14%, which is exactly what we projected.” He said the Xfinity Series “exceeded expert opinions on viewership,” but “the cable portion of the NBC portion (USA) has been a little softer than we expected.” Still, Phelps sounded confident: “Expectation moving forward, now that we have had the reset, is that we are going to grow.”
Horsepower Debate and Goodyear’s Role
O’Donnell also discussed horsepower limits. Some drivers, such as Denny Hamlin, prefer engines with over 800 horsepower. But O’Donnell defended the 750 hp limit. He said going higher would make costs “go through the roof.” The goal, he explained, is exciting racing that teams can still afford.
He praised Goodyear for its work on tire safety and performance. “The entire industry owes them a great deal of gratitude for what they’ve done.” Goodyear’s recent tires have improved multi-groove racing, especially at short tracks like Martinsville.
Both O’Donnell and Phelps at the NASCAR State of the Sport pointed out that the emphasis will be on hearing the fans and maintaining the expenses at a reasonable level while NASCAR is making plans for the 2026 season.
The gist of the communication was that NASCAR is evolving to be more intelligent, rather than simply larger. Therefore, the development of the industry is as thrilling as it is at present, with Hamlin, Briscoe, Byron, and Larson scheduled to race in the final.
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