Judicial Order Halts Sale of Rick Ware Racing NASCAR Team
A North Carolina judge issued a temporary restraining order preventing the sale of Rick Ware Racing’s NASCAR team to T.J. Puchyr, amid a legal dispute with Legacy Motor Club, owned by Jimmie Johnson. The order will be in effect for ten days. Legacy is required to present a $5 million bond before the close of Friday. Rick Ware Racing’s lawyers had requested a $150 million bond, which is the purchase price agreed upon between RWR and Puchyr, one of the founders of Spire Motorsports, currently a consultant for several teams and sponsors. The Legacy lawsuit against RWR arises from an agreement in which Puchyr negotiated the purchase of one of Ware’s two charters for Johnson’s team. The dispute centers on which charter Ware agreed to sell and whether the agreement is for 2026 or 2027. A charter is NASCAR’s version of a franchise tag, guaranteeing teams entry into each race, as well as monetary guarantees. Currently, Ware uses one of his charters for a full-time car for his son, Cody, and leases a second charter to RFK Racing. Before reaching an agreement to sell a charter to Legacy, Ware already had an agreement with RFK to exchange the charters and lease the other to RFK in 2026. Then, in 2027, Ware planned to sell a charter directly to Legacy, which has a significant investment from Knighthead Capital Management. Legacy sought a preliminary injunction and a temporary restraining order, arguing that Ware “has demonstrated his willingness to lie to Legacy and the Court about the status of the agreement.” Puchyr had negotiated the sale of the charter and Ware had previously stated that he had no intention of selling or transferring the charters while the demand was pending. Judge Clifton Smith issued a verbal order establishing a temporary restraining order that blocks any sale for ten days. Smith will consider Legacy’s request for a preliminary injunction. Mark Henriques, advisor to Rick Ware Racing, argued that both Ware and Puchyr intend to honor any agreement, but cannot meet the current terms of the charter purchase for 2026 due to the existing agreement to lease a charter to RFK next season. RWR and Puchyr have said the plan is to lease to RFK in 2026 and sell to Legacy in 2027; Legacy says that if Ware is selling to Puchyr, the charters should be contractually sold to Legacy.Ware’s attorney disagreed and argued that Ware is trying to stay in business as a one-car team for his son. Puchyr has made it clear that he intends to keep Cody Ware in the lineup after he buys Rick Ware’s assets.“What we know is that these promises were made and this covert transaction apparently took place and is apparently a binding agreement, although it has not yet closed,” said Legacy attorney Keith Forst. “There is really no harm to the defendant, and there is tremendous harm to the plaintiff Legacy if this closing of these assets actually occurs.”
Keith Forst
The trial is scheduled for January, but Legacy has filed a second lawsuit against Puchyr for interfering with its agreement with Ware. Legacy has also terminated its consulting agreement with Puchyr.“My clients did exactly what they were free to do, craft an agreement that meets the needs of the entity and enter into a binding transaction that covers the entire business and yet keeps Cody competing,” Henriques said. “They are trying to have their cake and eat it too, as they lost the first preliminary injunction.”
Mark Henriques
