Judicial Order Halts the Sale of Rick Ware Racing’s NASCAR Team
A North Carolina judge issued a temporary restraining order preventing Rick Ware Racing (RWR) from selling its NASCAR team to T.J. Puchyr. The decision comes amid an ongoing legal dispute with Legacy Motor Club, owned by Jimmie Johnson. The court order will be in effect for ten days. Legacy must post a $5 million bond before the close of business on Friday. RWR’s attorneys had requested a $150 million bond, representing the purchase price agreed upon between RWR and Puchyr. Puchyr is one of the founders of Spire Motorsports and is currently a consultant for various teams and sponsors. The Legacy lawsuit against RWR centers on an agreement mediated by Puchyr for Johnson’s racing team to purchase one of Ware’s two charters. The dispute focuses on which charter Ware 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 them income. 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 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, a private equity firm valued at over $13 billion.Legacy sought a preliminary injunction and a temporary restraining order, arguing that Ware had shown a “willingness to lie.” This came after Puchyr announced in June his plans 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 demand was ongoing. Judge Clifton Smith issued a verbal order blocking any sale for ten 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 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 claims that if Ware sells to Puchyr, the charters should be contractually sold to Legacy.Ware has shown a willingness to lie to Legacy and the Tribunal about the state of the agreement.
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 apparently is a binding agreement, although it has not yet closed. There is no harm to the defendant, and there is tremendous harm to the plaintiff Legacy if this closing of these assets does in fact occur.
Keith Forst, attorney for Legacy
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 at liberty 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 running.
Henriques
