Judge halts sale of Rick Ware Racing's NASCAR team amid legal battle with Legacy Motor Club
NASCAR Charter Dispute Halts Sale of Rick Ware Racing Team
Judge Issues Temporary Restraining Order Amidst Legal Battle With Legacy Motor Club
CHARLOTTE, N.C. - A North Carolina judge has issued a temporary restraining order preventing Rick Ware Racing from selling its NASCAR team to T.J. Puchyr, throwing the ownership deal into limbo amidst an ongoing legal dispute with Jimmie Johnson-owned Legacy Motor Club.
The order will remain in effect for 10 days, during which time Legacy Motor Club is required to post a $5 million bond by the end of business Friday. Rick Ware Racing's attorneys had initially requested a significantly larger bond amount of $150 million - the agreed-upon purchase price between RWR and Puchyr.
The legal battle stems from an agreement brokered by Puchyr, one of the founders of Spire Motorsports who now acts as a consultant to various race teams and sponsors, for Johnson's Legacy Motor Club to purchase one of Ware's two NASCAR charters. Disagreements have arisen over which charter was agreed upon for sale and whether the deal is for 2026 or 2027.
NASCAR charters act as franchise tags, guaranteeing teams entry into every race and providing financial assurances. Ware currently fields a full-time car for his son, Cody, using one of his charters, while leasing the other to RFK Racing.
Before entering the agreement with Legacy Motor Club, Ware had already made a deal with RFK Racing to swap the charters and lease the other to RFK in 2026. The plan was then for Ware to sell a charter outright to Legacy in 2027. Legacy's major investor is Knighthead Capital Management, a private equity firm valued at over $13 billion.
In court filings, Legacy Motor Club argued that Rick Ware “has shown a willingness to lie to Legacy and to the Court about the status of the deal,” following Puchyr's announcement in June to acquire RWR’s NASCAR team.
Legacy attorneys claim that if Ware is selling to Puchyr, the charter contractually should be sold to them. They argue that "there is tremendous harm to plaintiff Legacy if this closing of these assets in fact happens."
Conflicting Claims and Future Uncertainties
Mark Henriques, counsel for Rick Ware Racing, maintains that both Ware and Puchyr intend to honor existing agreements but cannot meet the current terms of the charter purchase for 2026 due to the lease agreement with RFK Racing. RWR and Puchyr assert their plan is to lease to RFK in 2026 and sell to Legacy in 2027.
Henriques argued, "My clients did exactly what they had the freedom to do, work out a deal that meets the needs of the entity, and enter into a binding transaction that covers the entire business and yet keeps Cody racing.”
The trial is currently scheduled for January 2024, but Legacy has filed a second suit against Puchyr for interfering with its deal with Ware. Legacy has also terminated its consulting agreement with Puchyr.