Judicial Order Halts the Sale of Rick Ware Racing’s 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, valid for 10 days, requires Legacy to deposit a bond of $5 million before the close of business on Friday. Rick Ware Racing’s lawyers had requested a $150 million bond, the agreed purchase price between RWR and Puchyr, who is one of the founders of Spire Motorsports and currently a consultant for several teams and sponsors. The Legacy lawsuit against RWR focuses on an agreement negotiated by Puchyr for Johnson’s team to acquire one of Ware’s two charters. The controversy lies in which of Ware’s charters he agreed to sell and whether the agreement is for 2026 or 2027. A charter in NASCAR is similar to a franchise and guarantees teams entry into each race, as well as ensuring financial benefits. Ware uses one of his charters for his son, Cody’s, car and leases the second to RFK Racing. Before negotiating the sale of the charter to Legacy, Ware already had an agreement with RFK to exchange the charters and rent the other to RFK in 2026. Subsequently, 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 the temporary restraining order that blocks any sale for 10 days. Smith will consider Legacy’s request for a preliminary injunction. Mark Henriques, attorney for Rick Ware Racing, argued that both Ware and Puchyr intend to comply with the agreements, but cannot meet the current terms of the charter purchase for 2026 due to the existing agreement with RFK for next season. RWR and Puchyr claim that the plan is to rent to RFK in 2026 and sell to Legacy in 2027; Legacy maintains that if Ware sells to Puchyr, the charters should be sold to Legacy by contract.Ware’s attorney, for his part, 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 been closed.”
Keith Forst, Legacy attorney
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
