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DETAILED: How the NASCAR Charter Agreement Fits Into Legacy Motor Club Suing Rick Ware Racing

Gowtham Ramalingam
Published

Jan 24, 2023; Avondale, AZ, USA; NASCAR Cup Series driver Jimmie Johnson (84) tests his Legacy Motor Club car during testing at Phoenix Raceway. Mandatory Credit: Mark J. Rebilas-Imagn Images

Legacy Motor Club (LMC) has found itself a new enemy in NASCAR. The Jimmie Johnson co-owned outfit has filed a lawsuit against Rick Ware Racing (RWR) for trying to back out of a charter deal that the teams had in place. The news has the entire motorsports world rocked in surprise. Here’s a detailed breakdown of why and how things went awry in the last few days.

LMC and RWR first met on January 6 to discuss the sale of a charter that the latter owned. Johnson already owns two charters and has long been seeking to make his team a three-car operation. RWR, too, owns two charters currently. It races using one and the other has been leased to RFK Racing. A final sale deal was agreed and signed between the teams on March 3.

The problem is that RWR now wants to back out of the deal. Why? Sources close to the matter claim that RWR believed that the deal would go into effect in 2027.

However, the papers that it signed mention that the deal would be effective from 2026. This presents a tricky situation for RWR. According to NASCAR’s Charter Agreement, a charter can be leased only once every five years.

What this means is that following the end of the 2025 Cup Series season, RWR could have switched the charter that it has leased to RFK Racing and keep their relationship alive for another year.

Signing LMC’s deal has made that impossible. The late realization or a careless overview of the papers is what has caused RWR to panic and try pulling the plug. Unfortunately, it might be too late.

Legacy Motor Club blasts Rick Ware Racing in court

The lawsuit that LMC filed did not go easy on the words. It described RWR as “strapped for cash, and unable to compete at a Cup Series level by its own admission.” The 46-page complaint is mostly redacted, but one can easily guess the nature of them. LMC also claimed that it would suffer irreparable and immediate harm if the deal were not completed as agreed.

In response to RWR’s defense that the effective date of the deal wasn’t made clear, LMC noted, “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.” NASCAR, LMC, and RWR have all declined to directly comment on the matter.

Post Edited By:Srijan Mandal

About the author

Gowtham Ramalingam

Gowtham Ramalingam

Gowtham is a NASCAR journalist at The SportsRush. Though his affinity for racing stems from Formula 1, he found himself drawn to NASCAR's unparalleled excitement over the years. As a result he has shared his insights and observations by authoring over 350 articles on the sport. An avid fiction writer, you can find him lost in imaginary worlds when he is not immersed in racing. He hopes to continue savoring the thrill of every lap and race together with his readers for as long as he can.

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