Losing Dale Jr. Isn't the End of the World For DEI

Today alone, Teresa Earnhardt has been classified everything from an evil stepmother to that name for a female dog for letting Dale Earnhardt Jr. jump ship and set himself as a free agent.

Could this look like the dumbest thing any NASCAR owner has ever done? To many, yes. But I'll be that guy -- I'll play the devil's advocate. Get the skewers hot, folks.

Teresa Earnhardt was right in letting her demands cause Dale Earnhardt Jr. to move away from Dale Earnhardt Inc.

So who in their right mind would let NASCAR's most popular driver just waltz away? Not many, actually. But Teresa Earnhardt did, and it could turn out OK for what many fans will now consider TEI. Here's why Teresa could have made a decent move:

1) Free Ownership? One of Dale Earnhardt Jr.'s key demands was that he get 51% ownership of the company that his father built. And that majority ownership was somehow supposed to be free to him and his sister. Could someone really let what many estimated to be $55 million to $75 million just be given away?

Teresa Earnhardt is sole owner of the company, and it's not a charity. After all, Jack Roush didn't just give half of his racing operation to Fenway. It was a business deal, and that's the way it should have gone down at DEI.2) Dale Jr.'s Experience So he's got the Earnhardt name. What other business experience does Junior have? I know, I know, he's built JR Motorsports and all that, but it's not like the 88 team has been very successful in the Busch Series. Are there any other qualifications that say Dale Earnhardt Jr. should be on the same par as Rick Hendrick, Joe Gibbs and Jack Roush when it comes to ownership?

That's the role he was after -- but how legitimately could he run an organization and drive at the same time? Don't kid yourself -- Dale Jr. would be as much a part of running that company as his sister Kelley Earnhardt Elledge would. Dale Jr. is a race car driver.

3) Losing Jr. Hurts, But Other Teams Race Without Him The question many have posed, including myself, is "What is DEI without Dale Earnhardt Jr.?"

That's tough to foresee right now. Losing the biggest personality in NASCAR won't help, but then again, only DEI had Dale Jr. Other teams didn't have that popular of a driver and still managed to run well. I'd bet that Jeff Burton, Clint Bowyer and Kevin Harvick don't have the same merchandise sales as Junior combined, but all three of the Richard Childress Racing drivers are ahead of him in the point standings right now.

Do you really need Dale Earnhardt Jr. to be competitive? No way -- after all DEI hasn't done jack in a while with him there, anyhow.

4) Junior's Ride Won't Be Hard to Sell With the crop of drivers available right now, the seat is not going to be hard to fill with a decent driver. NASCAR Silly Season will kick in very quickly and DEI will have no shortage of applications. Finding a sponsor? Could be tough, but then again, DEI still has that Earnhardt name attached to it.

Bring in a merger with Robert Yates? We could be seeing DEI Fords with enormous factory support and the addition of Gilliland and possibly Ricky Rudd to complement whoever DEI has next year. Martin Truex Jr.? Paul Menard? Bobby Labonte (last year of contract at Petty)? Joe Nemechek (pretty much got the shaft at Ginn)? Fill-in-frustrated-or-fired Toyota driver here?

There's plenty of quality candidates around for DEI if they've got the sponsorship.

--

As much as the Budweiser nation wants to slam Teresa Earnhardt for ripping apart the relationship with Dale Jr., all is not lost for DEI. Will the team win a title in the next ten years? I'd doubt it, but it hasn't really been close except for once in 2004. The team still is capable of running well and with new head guy Max Seigel, DEI has a new person to lead it with plenty of savvy business experience.

All is not lost for Dale Earnhardt Inc. And they'll prove it after a while.

Reader Comments (Page 1 of 3)

5-10-2007 @ 8:16PM

Shana said...

No offense to your post.. i do see what you getting at but Dale jr was to DEI as Tony is to Gibbs and Jeff or Jimmie is to Hendrick. Like you said other teams didn't have him and they succeeded but they had a head driver.. and now DEI doesn't really have that. They would have to make monumental changes for any of those guys you mentioned to win.(no offense to any of the drivers mentioned, they're great guys and all)

5-10-2007 @ 8:32PM

terry miller said...

my comment is that jr. should start his own race team he has the exprince to do so .

5-10-2007 @ 8:36PM

Janice said...

Do you really think this stuff? DEI was meant for his 4 children. Why should he have to buy his own company? Dale Jr. will survive without DEI, I mean, TEI. Good luck with that ownership thing T.

5-10-2007 @ 8:41PM

butch said...

terresa has bitch written all over her face!
it does'nt matter to me because nascar has the drivers
racing like little school girls thanks to thier fines
& punishment for every thing they try to do.it's bad enough listening to( over half)commercials!!
let them race like when it was interesting~

5-10-2007 @ 8:45PM

John said...

Geoff:

You need to read the SI article that was one of Dale Sr. last interviews. HE WANTED DALE JR. TO TAKE OVER DEI. Teresa is going against her own husbands wishes because of greed. Dale Jr. should not have to paid for the company ownership shares. I hope DEI goes down the tubes for now; then maybe someday Jr. can get it back.

i wrote a good letter ,did'nt get e-mail

5-10-2007 @ 9:10PM

servingwench said...

This is the perfect example of why things need to be spelled out clearing in one's will. If Dale Sr. left everything to Teresa, then it is hers to do with as she wishes. If he intended for his 4 children to evenly share his legacy, he should have make that provision. If he has, and Teresa is not honoring it, that is grounds for a lawsuit, as messy and horrible as it would be.

If DEI and Robert Yates Racing combine, I believe they would have cars that could contend. I don't think Jr would drive one of these as they would be Fords and I think Jr gets some pretty decent money from Chevy.

5-11-2007 @ 3:37PM

Gloria said...

The fact is, Dale Jr. wasn't asking for something that he had no right to. Was the company worth $60 million or $100 million or whatever it is now in 2001? I highly doubt it. More than selling Dale Sr. merchandise, the company has been built on Dale Jr's back. 51% is not too much to ask considering that they have made plenty of money off Dale Jr., including the marketing rights to his name until last year!! How many millions did Teresa get from that? Dale Jr. would have also shared with his siblings, which Teresa probably has no plans to do. I can't imagine that Dale Sr. wanted his kids (with the exception of Taylor) shut out and everything going to Teresa. Some people say, but she's a good businesswoman. Well, she proved with the events of today that she has no business running anything, let alone a large corporation. Dumbest move in modern sports history!

5-10-2007 @ 9:05PM

Peg said...

What driver would want to go with DEI (TEI whichever) with all of the backlash over this situation? Teresa Earnhardt didn't place enough value on her own step-son, how much support could any other driver honestly expect? She bit the hand that was feeding her, and she's going to seriously regret that.
Dale Jr.'s real fans are going to follow him, no matter where he goes.

5-10-2007 @ 9:12PM

Jeff said...

i totally agree with # 4s comment...the company should be partically his along with his brother and sisters...just because it wasn't put in writting because of his untimely death, anyone should see he would want his children to have what he biult. treasa is only in it for the money..she never really even liked the sport.

5-10-2007 @ 9:33PM

r harris said...

Picture this...Black chevy impala SS Bud select Gold
crown on the hood....goodwrench stickers on the Quarter panels..#3 on the door...JR if he is smart will go to work for Richard Childress Racing..the money to be made in merchandising alone....who knows....plus JR with his Dad's number.... I'm not a JR fan but a blind man can see whatcould happen here!

5-10-2007 @ 10:10PM

Michael Thomas said...

While I do agree that it wont be hard to get a new driver but I do think she has made a big mistake by letting him go. DEI will have a hard time for a long time to come but JR I think can be successful right away once he decides on who he wants to sign with. Me being a Sr. fan hope he goes to RCR and wins a championship but I think he would do good at Gibbs racing with Tony. those are the only two teams I would like to see him go to really.

5-10-2007 @ 10:29PM

Lisa said...

What is Max Siegel to Theresa any way? This has concerned me since seeing him hover over her at the awards. Rightfully so, Dale & his siblings should have part of DEI. That was their Dady's wishes- no Theresa's. She has always proven to be a shrewd business person. Bye bye DEI - Dale Sr certainly understands and his blssings are with his son. TEI will remain a museum for Dale's fans. Never fear Jr., your fans and daddy's fans wil stick with you.

5-10-2007 @ 11:17PM

Barb said...

Everyone should really think this through before hanging Teresa.She has done things for Jr. Teresa went in half to help Jr get Chance 2 started and the garage and equipment belonged to who? DEI that's who. DEI belongs to the family not 51% for Jr & Kelly. If Teresa signed that over who knows what would happen as far as Dale Srs.other 2 children go lets not forget this isn't just Dale & Kellys DEI. Dale Senior was and always will be my favorite DEI driver. We have watched Dale Jr from the Busch series up through the cup. I've watched him talked the NASTY about his fans getting worse as the years go bywith his crude remarks about us then turning around at the race and saying I do this for my fans. He really should think more before he speaks.Asking for ownership of his race team I could understand but 51% is crap so him and sweet Kelly can control DEI and forget about the 2 other children who couldn't do a darn thing once they took control of DEI.I wish the best for DEI and will stand by them all the way. I believe they will rebound there just getting started now.Dale Jr really needs to think for himself and if he can do anything without Kelly telling him what and how to do it then he has alot of growing up to do.Everyone has complaints about where they work that's life.As far as DEI drivers driving Fords that's is not what's happening if everyone knew there facts.Yates said himself he couldn't wait to make Chevy engines.So people know the facts before you speak all the facts.And by all means lets not forget Taylor & Kerry do exist people. DEI does not just mean Dale Earnhardt Jr people think of the rest of the family to.Good luck to Teresa & DEI in the furture.

5-10-2007 @ 11:51PM

Sande Langley said...

I truly believe that Ms TEI has been trying to make Jr. jump thru hoops and has sabotaged his father's wishes for Sr.'s children. Ms. TEI is a calculating and cold-
hearted wretch. Any one with an ounce of compassion and decency would gladly give Sr.'s children their part of the LEGACY of the father who made DEI. Teresa
just hopped on the money train, caring only for her own personal agenda. I have NO respect for her NONE

5-10-2007 @ 11:57PM

kennethb said...

I'm just A fan of DEI(past and present). How do any of you think that Dale Sr. would think about all of this? First and foremost, the man was A driver, one of the best. I dont think his plan for DEI included (TMAX)! JR. raced his way and worked his way to ownership of that co. I would like to see Teresa or Max strap thier body into that car and still have the same attitude about JR.

5-10-2007 @ 11:58PM

Gerry said...

Why is Jr. in NASCAR? To make money--yes however, bottom line is, WIN RACES. He hasn't done so well as of late. Sr was ALWAYS in the thick of things. Last year was bad for Jr and some other Chevy teams. Other teams have recovered, DEI has not. One must keep one's eye on the ball, in this case, WINNING races. Perhaps,Theresa has managerial skills, making money that is, but, bottom line, to make money, you must spend money improving your product etc. Walk a mile in Jr's shoes,winning races is his bottom line. Making money seems to be Theresa's. If you don't win races,money eventually dries up. I'm with you Jr. go givem lhee..

5-11-2007 @ 12:16AM

Patrick said...

Who will want to race for Teresa E.? It was obvios Dale jr. wasn't going onto the track with the best car or engine. Teresa wasn't doing her job. She should have put Dale in the dissision position on getting the best out od DEI and that was'nt happening.

5-11-2007 @ 12:33AM

The bottom line here is winning races. Jr. didn't do well last year. Neither did other Chevy teams i.e. Jeff Gordon. He's recovered DEI has not. Jeff's team has recovered, DEI for the most part has not. Perhaps, Jr. sees the writting on the wall(we can make money forever by riding Sr's reputation.) One must keep one's eye on the ball. The ball here is WINNING. If you don't win, you don't make money. Sooner or later an"astute businesswoman" such as Theresa will realize this but , by then it will be too late. Good luck Jr I'll put my money on you.