One of the big stories that has hung over the sport of NASCAR since the end of last season has been how 23XI Racing and Front Row Motorsports have been fighting the governing body.
The gist has been that the two teams did not want to sign the newly concocted charter agreement, setting off a string of lawsuits that range from antitrust practices, restriction of markets and whatever legalese name-calling the two sides are now attaching to each other.
The latest development has been the teams’ move to appeal the ruling that would allow NASCAR to strip the teams of their charters.
There are big ramifications to how the teams and NASCAR ultimately move forward, regarding the value of charters, who is entitled to what with the new TV contracts, gate receipts and a host of other elements that don’t affect the ticket-buying public, but could dramatically alter the sport.
It’s a high-priced game of poker with few players that serves as a reminder of how ridiculous and profitable sports can be. While these parties play out their hands, there’s another lawsuit that is much more fascinating to follow.
Welcome to the soap opera that is the Rick Ware Racing–Legacy Motor Club fiasco. If you haven’t been following this one, here goes …
On March 4, Legacy informed NASCAR that the team would be buying a charter from RWR for a reported $45 million. The purchase price became the largest for a charter, highlighting the increased value under the new charter agreement put into place. The issue with the deal is that the two teams are at odds as to which charter Legacy actually purchased.
Rick Ware Racing, at the time, held two charters: Nos. 27 and 36.
The no. 27 charter is currently leased to Roush Fenway Keselowski Racing, as Ryan Preece (no. 60) utilizes the benefits from it. Cody Ware, No. 51, races under the No. 36 charter for the RWR team. The big thing to recognize here is the position standings of each driver, last season and this, as the money paid out is reliant on season-ending finishing position.
Last year, the No. 27 charter finished in 36th, while the No. 36 finished in 34th.
As both charters raced for the underfunded RWR, these results do not appear surprising. The boon is from leasing No. 27 to RFKR, where Preece currently sits 17th in points and has the potential to make the Cup series playoffs, which would be a financial boon to the charter’s owner.
Because of that windfall, RWR would find little reason to sell it to LMC, but that argument portends that RWR knew Preece would have a shot to make the playoffs on March 4, which would seem like a statistical anomaly.
One of the issues that surrounds that charter is that RWR would not be able to lease the charter next year, as they are beholden to use it themselves or sell it.
The last part is where the story gets silly. Legacy have asserted that the deal they made for a charter was for the 27, but RWR avows that the 36 was the one. From a logical standpoint, the latter would be the intended way to go, as it would provide a foundation to go racing in 2026 since the team enjoyed the financial success of Preece’s season in conjunction with the cash infusion of selling the no. 36.
Legacy, recognizing that the better value rests with the 27, maintains that the deal was for Preece’s charter and paid accordingly. Their position makes sense as well.
What makes absolutely no #$%&*@^ sense whatsoever is that between the two lawyers, each representing a team, that neither were bright or scrupulous enough to ensure that the contract explicitly stated which !@#$%^& charter was being sold and purchased. That aspect seems like the most obvious of all.
The fact that these buffoons failed to take care of one of the most elementary parts of the contract negotiations seems to indicate that neither team deserves a charter.
As the two teams have begun bickering, RWR filed suit (June 17), spotlighting its incompetence and arguing how the deal in place was for the no. 36 charter.
Legacy had already sued RWR in April, showcasing its own version of ineptitude and how they believed they had a right to the charter. This story is evolving into a playground slap fight with judges standing off to the side like exhausted, primary school teachers more focused on getting a cup of coffee.
Things now stand with RWR asking the courts to invalidate any agreement between the two parties and that they should go on their merry ways. Once again, the only people getting rich are lawyers. What makes the story worth following is the value placed on charters and how both sides might argue their position in court.
That neither team seems especially able to handle important details regarding business matters should be a frightening example of managerial ineffectiveness and does not portend great things. Or that wealthy fools will just find new ways to throw their money at problems.
Either way, grab some bonbons, this should be fun to watch.
As a writer and editor, Ava anchors the Formula 1 coverage for the site, while working through many of its biggest columns. Ava earned a Masters in Sports Studies at UGA and a PhD in American Studies from UH-Mānoa. Her dissertation Chased Women, NASCAR Dads, and Southern Inhospitality: How NASCAR Exports The South is in the process of becoming a book.