Jr Wants Majority Ownership

[muggle not]

http://www.racingone.com/article.aspx?artnum=33191

The negotiations between Dale Earnhardt, Jr. and DEI took another turn during Thursday's Media Day activities at Daytona with Junior now asking for a majority ownership stake.

With Earnhardt, Jr.'s contract at DEI set to expire at the end of the 2007 season, the two sides have been negotiating in hopes of finalizing an extension.

Earnhardt, Jr. met with DEI officials on Wednesday night, including newly-appointed president of Global Operations Max Siegel and director of motorsports Richie Gilmore.

DEI president Teresa Earnhardt was not in the meeting.

[RaceFanStan]

Well, it will now be Bye-Bye Dale Jr @ DEI !!! :eek:

[Sparky1329]

I don't think Jr is going anywhere. If he's forced to, which I highly doubt, DEI is over. He's negotiating from a position of strength and proving a point in the process. Quite possibly his dedication to his job won't be questioned in the future.

[harvick#1]

time to come to RCR jooyner that #3 is waiting for you

[muggle not]

I don't think Jr is going anywhere. If he's forced to, which I highly doubt, DEI is over. He's negotiating from a position of strength and proving a point in the process. Quite possibly his dedication to his job won't be questioned in the future.
Yeah, I think that I agree. Either he gets the big piece of the pie or the pie dissappears.

[Sparky1329]

Yeah, I think that I agree. Either he gets the big piece of the pie or the pie dissappears.

I just heard a quote from Tony Stewart on the subject. "Without Dale Jr DEI is a museum." Precisely.

[BenRoethig]

Either way I don't think Theresa will have control of that team come 2008. If Jr. leaves, I think she's going to have to sell.

[RaceFanStan]

Dale Jr doesn't have the charisma that his dad had.
DEI would go on if Dale Jr left, Jr ISN'T the driving force @ DEI.
Dale Jr isn't like his father in any stretch of the imagination.
IF DEI's success hinges on Dale Jr then DEI is doomed !
How many CUP Championships does Dale Jr have ? (last I looked it was 0)
I don't understand why people think Dale Jr holds DEI together. :rolleyes:
Teresa has been & will be the force behind DEI, Dale Sr wanted to build DEI but TERESA made it happen !
Teresa is one shrewd business lady, IMO people are under-estimating Teresa & over-rating Dale Jr.

[call_me_andrew]

time to come to RCR jooyner that #3 is waiting for you

I think he would rather start his own team.

[Sparky1329]

Dale Jr doesn't have the charisma that his dad had.
DEI would go on if Dale Jr left, Jr ISN'T the driving force @ DEI.
Dale Jr isn't like his father in any stretch of the imagination.
IF DEI's success hinges on Dale Jr then DEI is doomed !
How many CUP Championships does Dale Jr have ? (last I looked it was 0)
I don't understand why people think Dale Jr holds DEI together. :rolleyes:
Teresa has been & will be the force behind DEI, Dale Sr wanted to build DEI but TERESA made it happen !
Teresa is one shrewd business lady, IMO people are under-estimating Teresa & over-rating Dale Jr.

I don't think Jr is holding DEI together. Jr is DEI regardless of his lack of championships or Dale-like charisma. If he's forced to leave his sponsors would almost certainly leave with him. Mikey, whose racing record is nothing compared to Jr's, has already waltzed off with NAPA so it could happen. No disrespect intended to Truex or Menard but I don't believe they could hold DEI together.

This takes nothing away from the fact that Teresa is a shrewd business woman. Other than her ownership and control of the Dale Earnhardt memorabilia, which is a huge business on it's own, her business includes an operating race team. Her headliner is Dale Jr.

[Sparky1329]

I think he would rather start his own team.


Not according to what he said.

snippet:


When asked if he would start his own Cup team, Junior said that wouldn't be his first choice.

"I really don't want the headaches of being a Cup owner," Junior said. "I would just as soon drive, save as much money as I can and retire. I want to race a long, long, long time.

"The older I get, the better I feel about my ability to compete longer and not run into the burnout of just wanting to get out of it. Once I am done driving, I really don't want to do anything else as far as ownership."

http://www.nascar.com/2007/news/headlines/cup/02/08/dearnhardtjr.contract.status/index.html

[djarumdudley]

thinking this is a negotiating tactic on Dale Jr's part. start off high so he can end up with what he wants. i can't see Teresa giving up majority stake at this point. as noted above Dale Jr doesn't seem ready to tackle controlling ownership while still driving. i can envision him receiving a 25-35% stake with more to come as his driving career winds down. this seems like the perfect time to get everything prepared for his future within the company once driving is over for him. perhaps he realizes his popularity will only remain this strong as long as he's a driver.

[call_me_andrew]

Not according to what he said.

snippet:


When asked if he would start his own Cup team, Junior said that wouldn't be his first choice.

"I really don't want the headaches of being a Cup owner," Junior said. "I would just as soon drive, save as much money as I can and retire. I want to race a long, long, long time.

"The older I get, the better I feel about my ability to compete longer and not run into the burnout of just wanting to get out of it. Once I am done driving, I really don't want to do anything else as far as ownership."

http://www.nascar.com/2007/news/headlines/cup/02/08/dearnhardtjr.contract.status/index.html

Well isn't that contrary to him wanting controlling interest in DEI?

[Alexamateo]

I would first have a few questions. Is he wanting to buy into the company and have a controlling # of shares, or does he want it given to him as his birthrite? What is his ownership % now, if any? Also, what were Dale Sr's wishes if any regarding his company and his children?

[muggle not]

Jr has stated that he would like a majority interest. When asked whether he wants it given to him or would he pay for it he responded....either way.

Without sponsorship, most teams will fade away. And sponsorship will go with Jr, if he decides to leave. Teresa may be a smart woman but she blew it with Jr. Her comments have widened the already big gap between them.

[jslone]

If he does not want to become an owner,then why does he want to control a major part of DEI,that is contradictory(sp) to what he is saying about not want to be an owner.That part I dont get.

[RaceFanStan]

I think Dale Jr wants to get his hands on the money & have more say about his team @ DEI. :eek:
Plus he thinks because his daddy owned it, Dale Jr apparently thinks he is the heir to the throne. :rolleyes:

[jslone]

In 1 aspect,just like Kyle and Richard Petty?

[trumperZ06]

:dozey: Jr. is adament about wanting majority ownership... that much is certain!

Posts on other web sites,for instance ESPN and Fox Sports, as well as in the press, indicate there is a lot of animosity, hidden just below the surface, between Jr. and his step-mother.

[tstran17_88]

If Joonyer gets a majority ownership at DEI...it'll be Kelley running the place, not Joonyer, so I think it would be in more than capable hands.

Theresa is a shrewd business women...so I think she'll cave and give all of Dale Sr's kids part ownership. Without Joonyer, the DEI ship will sink.

I read a interesting article in Nascar Scene a few weeks back written by Jeff Owens. He mentioned that Theresa is more interested in protecting the name 'Dale Earnhardt Sr' than running the company he built. He said that if Sr where alive today...he'd be doing the exact opposite.

[BenRoethig]

If she's smart, she'll reach a compromise where she runs the business end and Jr makes the racing decisions. They also need to form a new version of RAD with RCR, DEI, and JGR. Things went much more smoothly when they shared notes.

[BenRoethig]

If Joonyer gets a majority ownership at DEI...it'll be Kelley running the place, not Joonyer, so I think it would be in more than capable hands.

Theresa is a shrewd business women...so I think she'll cave and give all of Dale Sr's kids part ownership. Without Joonyer, the DEI ship will sink.

I read a interesting article in Nascar Scene a few weeks back written by Jeff Owens. He mentioned that Theresa is more interested in protecting the name 'Dale Earnhardt Sr' than running the company he built. He said that if Sr where alive today...he'd be doing the exact opposite.

She is a shrewd businesswoman. She has always been a genius on the marketing side. She doesn't understand much about the racing side though. That was Dale Sr's gift. He could judge people and situations better than almost anyone else.

[Jag_Warrior]

It's not like I've ever met Teresa Earnhardt and maybe she really is smart as a whip. But having been married to Dale Earnhardt is almost like having been married to Elvis (in the South, anyway). So my question is, what makes her particularly "brilliant"... other than the fact that she married the right guy at the right time?

Here's the deal, IMO. He walks, and his income and popularity, if not race wins, are not affected. He might even be better off all the way around somewhere else... especially at RCR - which is where I hope he goes anyway. But without him, here's a (rare) time when I agree with Tony Stewart: museum time. The team might survive (as a shell of itself), but sponsors and attention are drawn to that team because he is Dale Earnhardt's kid. And championships or not, he wins races.

If she calls his bluff, then I think we'll see how fast she is on her feet, should he leave.

[BenRoethig]

It's not like I've ever met Teresa Earnhardt and maybe she really is smart as a whip. But having been married to Dale Earnhardt is almost like having been married to Elvis (in the South, anyway). So my question is, what makes her particularly "brilliant"... other than the fact that she married the right guy at the right time?

Here's the deal, IMO. He walks, and his income and popularity, if not race wins, are not affected. He might even be better off all the way around somewhere else... especially at RCR - which is where I hope he goes anyway. But without him, here's a (rare) time when I agree with Tony Stewart: museum time. The team might survive (as a shell of itself), but sponsors and attention are drawn to that team because he is Dale Earnhardt's kid. And championships or not, he wins races.

If she calls his bluff, then I think we'll see how fast she is on her feet, should he leave.

He leaves she might as well sell that team. She'd be left with two untested drivers Dale Jr. brought Martin and Bass Pro into the fold and while a pretty decent driver, lets face the only reason Paul Menard is in cup is because his dad is the sponsor. If he leaves, I could see John Menard pairing up with Robby Gordon to offer to take it off her hands.

[beachbum]

Just as some have suggested stated about Teresa: "what makes her particularly "brilliant"... other than the fact that she married the right guy at the right time?", the same could be said about Junior. What makes him so great other than the legacy of the name? He is no Dale, Sr.

Take away he name "Dale Earnhart" and what does Jooonior bring to the table? DEI is an average team, not quite at the level of Roush, RCR, Hendrick, Gibbs, or Evernham. Even though it appears nearly all of the resources in the team are focused around Junior, other than restrictor plate races, the team is usually not much of a threat (I know, someone will trot out some statistic. It is just my opinion). It is still mainly a one horse team. Juniors main attribute is his marketing value, and much of that is the result of the luck of havng his fathers name. True, he is a good driver, but would he be nearly as valuable if his name were Kerry Earnhart or Dale Smith?

The main thing he brings, after his name, is "Bud". The Bud money is big and I suspect DEI lives off of it. But Budweiser backed away from the Busch series and thinking they will stay forever behind one driver may be optimistic. Even Goodwrench left RCR after many successful years.

When I first read about the demand, it struck me as purely an arrogant power play. He seems to think he holds all of the cards and is the key to DEI surviving. Some fans obviously agree. But the real key may be "Bud", not Jooonior. Just as Mikey would only be a backmarker without NAPA (actually he is still a backmarker), where would Junior be without Bud? Of course, where would DEI be without Bud?

I don't think the position of either side is nearly as stong as they would like to suggest. The cards aren't being held by Junior or Teresa. There are being held by the sponsors, specifically "Bud"

[BenRoethig]

They used to be one of the top tier teams in NASCAR. The new owner couldn't adjust.

[Mark in Oshawa]

I Love how everyone demeans Dale Jr. as if he was some member of the lucky sperm club or something. I think by now it is obvious is is a pretty decent race driver. Is he Tony Stewart or Jimmie Johnson? Maybe not, but maybe we wont know if he never races with a team that can put him on top every race.

Dale and his sister Kelley have figured out that they don't need DEI as much as DEI needs Jr. Kelley knows that Bud isn't going anywhere. Dale has Bud in his back pocket because he has been their most successful marketing campaign in racing for some time. Without the Bud money, t-Stew has it right on, DEI is a museum. Theresa is bent on holding onto everything as if Dale Sr. might pop back into the office at any time. She doesn't seem interested in sharing the power at DEI with Kelley and Jr. I stated on another thread that I felt the issues were between Theresa and Kelley as much as anything, and I got slagged but I suspect I am not far off the mark. It is about control, and the thing is, Jr. knows that if he is to win a Championship at DEI, the only way he can do it is to call more shots on the racing side. Taking the Eury's away from him 2 years ago was not his decision, it was Theresa's and we saw how well that worked. Theresa knows how to make money off the image of her late husband. She is a great lady I don't doubt, but she doesn't know the sport the way Sr. did or any of the other owners who have won championships do. The fact DEI and RCR are not sharing the way they used to is proof of this. RCR is back while DEI is struggling. The only thing that Theresa can do if she is smart is work out some sort of ownership stake and hire someone who is knowledgeable in the sport to run the racing side and stay out. Make that someone agreeable to Jr.

Jr. doesn't want to own a cup team really, but the thing is, he wouldn't be running DEI if he did own it, Kelley and whoever they hired to run the racing side would do the running. Jr. just wants a great race car week in week out. He hasn't had that yet, and while he would love to do it driving for the team his Dad started, lets face it, his market value to Gibbs or RCR would be MASSIVE. DEI is special, and if any other team had treated Jr. the way they have, he would be gone already......

[Phoenixent]

I look at it this way owning a business myself. If the kids are doing something to promote the business and create a better future for the company fine. But to hand over 51% to my 25 year old son or daughter just because they think it's their due is just dumb. If my kids told me that I would say fine if you want it buy it lets due it. But I will hand over the company I built until I am ready. As the saying goes money talks and B******t walks. He did not build the team his father and step mother built the team. If I remember right it was a Busch team before with Ron Hornady as a driver among others before Jr. If junior wants it BUY IT if he should just go to another team and quit whining. If Theresa is real good at business she will survive and maybe improve. If not then so be it the auctioneers will come in and finish it. Then everything her and Dale Sr. built will be gone.

[e2mtt]

DEI is a second tier race team, with no history of winning championships, that happens to have the most popular driver with the best sponsorship driving for them.

Junior CAN negotiate from a position of strength, because he IS DEI. Without him they have 0 championships, 2 wins (by a driver no longer with them) and 2 rookie drivers. And a really big fancy building. (Actually they have a good Busch team... got to give them that)

Jr. hasn't been happy with a lot of the decisions Teresa & DEI have made for him. I can't blame him for wanting a controlling ownership.

How long do you think it would take for RCR, HMI, or JGR to set Jr. up with a great ride & arrangement if he left DEI? (I would prefer JGR personally)

[muggle not]

Most think that Jr would go to RCR but I believe he would go to JGR

[BenRoethig]

DEI is a second tier race team, with no history of winning championships, that happens to have the most popular driver with the best sponsorship driving for them.

Junior CAN negotiate from a position of strength, because he IS DEI. Without him they have 0 championships, 2 wins (by a driver no longer with them) and 2 rookie drivers. And a really big fancy building. (Actually they have a good Busch team... got to give them that)

Jr. hasn't been happy with a lot of the decisions Teresa & DEI have made for him. I can't blame him for wanting a controlling ownership.

How long do you think it would take for RCR, HMI, or JGR to set Jr. up with a great ride & arrangement if he left DEI? (I would prefer JGR personally)

Actually it's six wins. Steve park won two Watkins Glen and Rockingham before he got hurt. Mikey has for, two Daytona 500s, a Pepsi 400, and a race at 'Dega. The rest of it holds up. As for the pretty good Busch team, Jr. is the one who put that together.

[BenRoethig]

Most think that Jr would go to RCR but I believe he would go to JGR

I don't. He's great friends with Smoke, but that's JD's team now. With RCR he has tradition and I do think Richard would be open to selling the team to Jr. when he's ready to retire in a couple of years.

[Phoenixent]

As for the pretty good Busch team, Jr. is the one who put that together.

I believe that the Busch car Dale Sr. at Daytona drove was entered and owned by Theresa. So as history would show she has several Daytona wins.

[muggle not]

I don't. He's great friends with Smoke, but that's JD's team now. With RCR he has tradition and I do think Richard would be open to selling the team to Jr. when he's ready to retire in a couple of years.
Yeah, there is some possibility there. Richard said on a local show that he would be more content spending full time with his Winery. I believe he is close to giving up racing and devoting his energy to something that he, at this point in his life, enjoys much more. At least that is the indication that he gave in the interview.

[harvick#1]

As for the pretty good Busch team, Jr. is the one who put that together.

DEI is still the Busch team, they may claim its Chance 2 motorsports but everything comes out of DEI. JR. Motorsports is Jrs real Busch team, and they only make Chassis'

[e2mtt]

Actually it's six wins. Steve park won two Watkins Glen and Rockingham before he got hurt. Mikey has for, two Daytona 500s, a Pepsi 400, and a race at 'Dega. The rest of it holds up. As for the pretty good Busch team, Jr. is the one who put that together.

Thanks. I stand corrected.

The corrected sentence: Without him they have 0 championships, 6 wins (by 2 drivers no longer with them) and 2 rookie drivers.

[Mark in Oshawa]

Kelley and Jr. are not playing this game merely for control for control's sake. It has been obvious that most of the good things on track have been residual effect of Sr.'s management hires and people management. Theresa is not her husband, and while she has a lot going for her, and she is very anxious to make sure Sr.'s legacy is not harmed, Jr. also wants a piece of the control to make sure people being hired are being hired for their racing smarts, not just to fill positions. I think the switching of chiefs a few years back really brought this home to Jr. that the racing side of the operation is what will make or break things, and he doesn't want to resign if he cant have some say in the operation. I don't think he wants sole control. I also don't think he would do anything to hurt his dad's image or reputation. I do however think that if he is to say at DEI, he needs to have some assurance that no stones are being left unturned to get him the best possible car. His sponsorship with Bud is likely going to follow him if he leaves, and that is the card Theresa has no answer for.

She has two choices. Find a way to make a partnership with Jr. and Kelley, or let him walk, and try to build around Truex, Menard and whomever they can hire. Letting him walk would be just insane in my opinion. Jr. is a wanted commodity on his commercial value to sponsors by itself, never mind his driving. The fact that he hasn't won a championship is not a factor, for many believe (from what I have read among the various columnists covering Nextel Cup) that Jr. has the ability;and it has been obvious DEI that has been lacking in their program middle tracks, the "cookie cutters". Dale is good on short tracks, has done pretty well on the road courses, and has won at Daytona and run well at Dega, but you cannot win if you don't constantly finish well on the cookie cutters and flat tracks. You put him in a program with a history of those things, and then you judge him.

Right now, his loyalty to the DEI history and the Eury's is the only reason he has been there THIS long. Theresa is damn lucky he didn't bolt a few years ago after the Pete Rondeau debacle......

[tstran17_88]

I Love how everyone demeans Dale Jr. as if he was some member of the lucky sperm club or something.Kerry is a card carrying member though. How else would one explain wrecking just about every race car he's been in and still given chance after chance to prove he can wreck a race car.

[muggle not]

Rumor has it that paul Menard is leaving DEI next year and taking his sponsorship with him.

[BenRoethig]

Rumor has it that paul Menard is leaving DEI next year and taking his sponsorship with him.

He practically is his sponsorship.

[muggle not]

He practically is his sponsorship.
The point being that DEI will not have it regardless where it comes from.