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Legacy Motor Club sues Rick Ware Racing over NASCAR charter purchase gone awry

Legacy Motor Club sues Rick Ware Racing over NASCAR charter purchase gone awry

New York Times01-04-2025

Legacy Motor Club filed a lawsuit Tuesday against Rick Ware Racing as the two NASCAR Cup Series teams clash over a charter purchase gone awry.
According to the suit, Legacy is seeking a temporary restraining order to complete the transaction of an RWR charter (which is similar to a franchise in other sports).
Legacy said the teams met on Jan. 6 to strike a deal and signed it on March 3 after agreeing on payment terms. Exact figures were not disclosed publicly, but charters have been sold at valuations of up to $40 million. And now, Legacy claims, RWR has cold feet.
'Despite having a binding deal in place, RWR wants to back out,' the suit said. 'It has told Legacy that it will not, under any circumstances, close the parties' transaction. Legacy has tried to talk sense into RWR, to no avail. Legacy's patience has run out. It now brings this suit to enforce its rights and hold RWR to its deal.'
According to multiple sources familiar with the lawsuit but not authorized to speak publicly, the dispute centers around the timing of when the charter would be transferred from RWR to Legacy, which is owned by seven-time Cup Series champion Jimmie Johnson. RWR is said to have been under the impression the agreement would go into effect for 2027, but Legacy changed the year to 2026 without communicating to team owner Ware or other RWR representatives it had done so.
It was only after Ware signed the contract that he learned of the change to the transfer date, after which RWR communicated to Legacy the deal was off.
Legacy disagreed, noting in the suit: 'Not only did the parties sign the agreement, they initialed every page for good measure. Indeed, the parties agreement (redacted) has been clear from almost the beginning of the parties' negotiations.'
Further, the filing said, RWR's position is 'belied both by the plain text of the agreement and the contemporaneous written communications surrounding the parties' negotiations.'
Much of the suit is heavily redacted, leaving further specifics unclear at this time other than headings such as 'Legacy Uncovers the Truth' and 'RWR Gets Cold Feet.'
A request for comment from RWR was not immediately returned. Legacy said its longstanding policy is not to discuss contractual or business dealings publicly.
NASCAR declined to comment on the matter.
NASCAR has 36 charters, each of which provides guaranteed entry into all Cup Series races. Charter teams earn millions of dollars in purse money, which is distributed from NASCAR's $7.7 billion media rights deals with Fox Sports, NBC Sports, Amazon and Warner Brothers Discovery.
(Photo: Chris Graythen / Getty Images)

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