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 present a $5 million bond 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, one of the founders of Spire Motorsports and now a consultant for several teams and sponsors. The legal dispute arises from an agreement in which Puchyr facilitated the purchase of one of Ware’s two charters by Johnson’s racing team. The conflict 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 and guarantees teams entry into each race, as well as monetary guarantees. Currently, Ware uses one of his charters to have 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 currently in play 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, a private equity firm valued at over $13 billion. Legacy sought both 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,” after Puchyr announced his plans in June to buy RWR’s NASCAR team. 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 litigation was pending. Judge Clifton Smith issued a verbal order on Thursday that blocks any sale for 10 days. Smith will consider Legacy’s request for a preliminary injunction. Mark Henriques, legal advisor for Rick Ware Racing, argued that both Ware and Puchyr intend to honor any agreement, but cannot fulfill 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, 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 said. “They are trying to have their cake and eat it too, as they lost the first preliminary injunction.”
Mark Henriques, legal counsel for Rick Ware Racing
