Just one day after the close of the prestigious Knoxville Nationals, the motorsports world learned that Tony Stewart had parted ways with Donny Schatz, a driver he’d worked with for nearly two decades under the Tony Stewart Racing banner. Together, they built a reputation as one of the most feared partnerships in sprint car racing history. Why make that call now?
Tony Stewart pulled a Jimmie Johnson move in 2021, stepping away from the grind of full-time NASCAR ownership to chase his dream of NHRA drag racing, much like Johnson’s bold leap to IndyCar. But Stewart’s pivot came with heavier baggage, his growing focus on drag racing coincided with a noticeable slide in Stewart-Haas Racing’s NASCAR performance.
Once a powerhouse boasting titles in 2011 and 2014, SHR’s momentum waned in the following years, and by 2024 the team’s NASCAR chapter was officially shut for good. For many fans, it wasn’t just bad luck, it was the byproduct of Stewart’s attention shifting lanes entirely. Now, Stewart’s back in the headlines for another sudden, high-impact decision.
Tony Stewart’s dramatic mid-season shift caps off an era
The shockwave rolled in, Tony Stewart Racing announced on August 12, 2025, that they were parting ways with Donny Schatz, a Sprint Car legend. In a FloRacing interview, he confessed: “There’s never an ideal time… Donny’s been miserable driving the car and we’ve been miserable trying to find solutions.”
He also confirmed that the shortening sprint-car offseason squeezes options, and delaying the split could’ve turned toxic, not just for Schatz, but for the entire team. He gave props where they’re due: “He’s become part of my extended family… a generational driving talent.” Yet, the results haven’t been up to their mutual standard, and they both need a chance to refocus on 2026.
The move is questioned by fans, some even considered it yet another “stupid” decision by Stewart. But he has his own reasoning, claiming to focus on the team’s position, he said, “I mean, it’s kind of similar to the decision to announce the SHR deal, (when Stewart-Hass Racing’s NASCAR operation shut down). I mean, this: There’s never an ideal time.”
Donny Schatz, a legend who’s hauled in ten World of Outlaws championships and nine Knoxville Nationals titles over nearly 18 years. He has racked up 234 wins with TSR and stands third all-time with 316 feature wins. His final act? Pulling off an 11th-place A-main run at Knoxville after battling through B-mains classic Donny.
Together, Stewart and Schatz built a sprint-car juggernaut. But with changing dynamics in the sport, equipment troubles, and mounting frustrations, Tony decided that mid-season was better than burying the year in disappointment. Now, Kerry Madsen’s stepping into the No. 15, a familiar face, to finish out the season, and everyone waits to see if it’s a comeback or a collapse. “We’ve had Kerry before driving my car, and, I was impressed with him. So I think he’ll come in and do a solid job right out of the gate, and, we’ll kind of figure out where we’re all at.”
Matt Hagan locks in long-term with Tony Stewart Racing
Two days ago, on August 11, 2025, Tony Stewart Racing (TSR) confirmed a multi-year contract extension with four-time NHRA Funny Car world champion Matt Hagan. The contract is a solid move that firmly planted TSR’s flag in the drag-racing world.
Hagan, the four-time Funny Car champion and Dodge stalwart, has hauled in 14 of TSR’s 19 total wins and delivered their first Funny Car championship in 2023. Stewart hailed him as more than just a driver, saying, “I think the world of Matt and his team… Signing this extension is great for our program.”
Hagan, ever the class act, let us inside: “Being able to extend my contract with Tony Stewart Racing is huge… Tony makes sure we have all the parts and pieces to be able to do all we need to… I’ve been with [Dodge] for close to 20 years and it shows what a great relationship we have with them.”
With this extension, Stewart made it clear he’s building for sustained dominance in drag racing, pairing Hagan’s proven firepower with the team’s growing technical strength to keep TSR a threat for more championships in the years ahead.
Tony Stewart plays the long game on his own terms. As for Schatz, his résumé speaks for itself: a legacy packed with Knoxville Nationals and Kings Royal victories, solidifying his place among sprint car royalty. Fully capable of running at the highest level solo, his next move will be one to watch out.
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