I wanted to start with this subject because I found this an interesting development. A couple reports surfaced recently suggesting that Dale Earnhardt Inc. was possibly sniffing around for potential money-backers or maybe even a buyer. Of course President Max Siegel was quick to deny the rumors which is obviously the common practice in a situation like this. Now we all know that NASCAR is directly affected by our economy, and right now, our economy isn't in the best of shape. However, DEI has always been in the upper echelon as far as Cup teams on the track go. So if there is in fact some substance to these reports, then why the sudden financial issues? Especially when all the other teams in that upper echelon such as Hendrick, Gibbs, Childress, and Roush don't seem to be having these issues. Again, this is all purely speculation, but I feel that it has something to do with the departure of Dale Jr. Now I know that selling t-shirts and hats isn't going to fund a Cup team, but 45% of all NASCAR merchandise sales is made up of Dale Jr. merchandise. That sounds like a decent chunk of change to me.
After Dale bailed, this is what the team is left with:
Martin Truex Jr. - He's pretty much the "flagship driver" of DEI if you really want to call him that. He was money in the bank in the Busch series but has left something to be desired as far as Cup racing goes. He had a nice first and only win at Dover last season and has the occasional decent finish. He could possibly excel in better equipment but that's a different story for a different day.
Aric Almirola - He'll take over the 8 car full time next season when Mark Martin comes over to the Good Guys to drive the 5. Aric has shown some potential in the Busch series but its hard to imagine he'll be something to watch out for.
Regan Smith - I would probably bet my bottom dollar that this team/driver gets dropped come next season if something else doesn't happen first. If the financial issues are in fact true, you've got to start by cutting the dead weight, and this team would be first on the list.
Paul Menard - He, along with Martin, showed some great driving ability in the Busch series. I think his biggest issue in making the transition to a Cup car was that it came too soon. When Michael Waltrip decided to leave to start his own team, Paul was put in the car right away. He looked great for the first half of the July Daytona race this season, but that's about it.
So what does all my rambling mean? DEI could really use some improvements on the roster to bring in some more money or else they could find themselves in the same company as teams like Yates, Ganassi, and maybe even Furniture Row Racing.
I will leave you all with this final thought on the subject: Wouldn't it be ironic if Teresa did in fact sell the team after denying Dale Jr. majority ownership and making ridiculous requests when Dale wanted to bring the 8 to Hendrick? I hate to say it, but I've always had this feeling that maybe Teresa isn't the best candidate to own a NASCAR team. I'm just putting it out there.
-R.B.P.
About Me
- R.B.P.
- Massachusetts, United States
- Simply put, I'm as big of a NASCAR enthusiast as you will find. I started 'The Pit Box' to discuss anything and everything related to NASCAR. From the latest news and rumors, to the past and present state of racing, I like to touch upon all aspects. I'll even throw in my two cents at times, biased or unbiased, and I encourage everyone reading this to feel free to do the same. Your comments, questions, and opinions are always welcomed here. DISCLAIMER: At the end of the day, Dale Earnhardt Jr. is my favorite racecar driver. While I can recognize and respect a talented driver, Kyle Busch is my least favorite driver, and no its not because of the Richmond incident.
1 comment:
I think Dale Jr. leaving DEI obviously effected the bottom line of the company. You can't take NASCAR's most popular driver away and not have it effect revenue flow. It directly effects sponsorships and merchandise sales. DEI could prosper with a financial partnership. Other upper echelon teams mentioned have income from other sources to help them along. Roush has a partnership with the Fenway Financial group. Gibbs made a small fortune as a successful NFL coach, Hendrick owns several car dealerships, and Childress owns a winery and has a line of sausage products. Teams funded solely through the racing industry are all but extinct. With a little money, luck, and a few wins DEI will be fine.
Teresa is probably not the best candidate to own a race team. She likely never intended on being the sole owner of a team. After Dale Earnhardts unexpected death, She could have walked away from DEI and racing altogether. No one would have blamed her. Instead, she dealt with the trauma of the tragedy and continued to lead the company her husband was so passionate about. I think this speaks volumes about the womans character.
When Dale Sr. passed away all assets went to Teresa, as is the norm when a spouse dies. No offer was made to buy a majority share of DEI by Dale Jr. Jr. wanted her to give it to him outright. In the event of Teresa's death it's likely that DEI would pass down to Dale Sr.'s children Kerry, Kelley, Dale jr., and Taylor. Perhaps if Jr., or any of his siblings, offered to buy a share of DEI, she would have considered it. I suspect they would even be offered a substantial family discount. In all actuality she probably prefers it to stay in the family. Jr. has no greater right to majority ownership of his father's company than the other Earnhardts. Teresa couldn't grant his request and provide equally for herself and all the Earnhardt children.
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