Court Order Halts Sale of Rick Ware Racing NASCAR Team
A North Carolina judge issued a temporary restraining order preventing Rick Ware Racing from selling its NASCAR team to T.J. Puchyr, amid a legal dispute with Legacy Motor Club, owned by Jimmie Johnson. The order, effective for 10 days, requires Legacy to present a bond of $5 million before the close of Friday. Rick Ware Racing’s lawyers had requested a $150 million bond, the agreed purchase price between RWR and Puchyr, former founder of Spire Motorsports and now a consultant for teams and race sponsors. The dispute centers on an agreement brokered by Puchyr for Johnson’s team to purchase one of Ware’s two charters. The disagreement lies in 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 and securing monetary resources. Ware currently uses one of his charters for his son, Cody, and leases a second to RFK Racing. Before negotiating the sale of the charter to Legacy, Ware already had an agreement with RFK to exchange the current 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. Ware has shown a willingness to lie to Legacy and the Tribunal about the state of the agreement. Judge Clifton Smith issued a verbal order blocking any sale for 10 days. Smith will consider Legacy’s request for a preliminary injunction. Mark Henriques, attorney for Rick Ware Racing, argued that Ware and Puchyr intend to honor the agreements, 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 stated that the plan is to lease to RFK in 2026 and sell to Legacy in 2027. Legacy claims that if Ware sells to Puchyr, the charters should be contractually sold to Legacy.Ware’s lawyer 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 buying 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. There is really no harm to the defendant, and there is tremendous harm to the plaintiff Legacy if the closing of these assets actually occurs.
Keith Forst, Legacy’s lawyer
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. They are trying to have their cake and eat it too, as they lost the first preliminary injunction.
Henriques
