One Of The Worst Personnel Decisions

[muggle not]

http://www.inrich.com/cva/ric/sports/autoracing.apx.-content-articles-RTD-2007-05-11-0093.html

[Cindy_AL]

So true.

[RaceFanStan]

I reserve the right to disagree.

Dale Jr has lots of fans, sells lots of collectibles but he ISN'T the driver his father was ! http://www.motorsportforum.com/forums/images/icons/tongue-anim.gif
Dale Jr's demand for 51% of DEI was unreasonable & he didn't deserve it ! http://www.motorsportforum.com/forums/images/icons/tongue-anim.gif

I for one applaud Teresa for having the guts to let Dale Jr walk.
All you naysayers think what you want but DEI will survive without Dale Jr. http://www.motorsportforum.com/forums/images/icons/tongue-anim.gif

DEI will go on & they will have at least 2 cars next year. :D

[Sparky1329]

You may be right but I don't see it, Stan. On ESPN yesterday they cited figures that indicate Jr's worth at DEI represents 65% of the company's value.

[RaceFanStan]

Look at it this way ..... if Jeff Gordon left Hendrick MotorSports, would HMS fold up ?
No, it would not !
Losing Jeff Gordon would hurt HMS but a driver leaving doesn't spell the doom of a company.

The Cup driver pool is limited but there are talented drivers who will jump at the chance to drive for DEI.
They may need to to look at NBS or CTS if they have to have a young gun.
If the are willing to go with a veteran driver .....
Bobby Labonte, Sterling Marlin, Ward Burton, Scott Riggs & Joe Nemechek's contracts are up at the end of be 2007 ....

[trumperZ06]

;) Hhmmmm... DEI's worth a whole lot LESS... than it was two days ago !!!

:D : Maybe Dale Earnhardt Jr sure make her an... "offer" ?

:dozey: Also... I wonder if Teresa will be getting any help from other Chevy team owners... now that Jr's gone.

Maybe she will get a little help from Roush... if DEI changes to Ford and Yates comes on board.

IN reality... it's starting to look bleak for DEI.

[Phoenixent]

I reserve the right to disagree.

Dale Jr has lots of fans, sells lots of collectibles but he ISN'T the driver his father was ! http://www.motorsportforum.com/forums/images/icons/tongue-anim.gif
Dale Jr's demand for 51% of DEI was unreasonable & he didn't deserve it ! http://www.motorsportforum.com/forums/images/icons/tongue-anim.gif

I for one applaud Teresa for having the guts to let Dale Jr walk.
All you naysayers think what you want but DEI will survive without Dale Jr. http://www.motorsportforum.com/forums/images/icons/tongue-anim.gif

DEI will go on & they will have at least 2 cars next year. :D

I agree with you Stan on this one. If Jr wants to make his own way fine. But it's a tough row to hoe.

Teresa will come out just fine on this as she was the business mind behind Dale Sr.

Jr. on the other hand will have to step up to the plate. He would have any excuss for poor performance because DEI is not in the picture any more.

It's a good thing I don't run the team I would stand him down for the rest of the season. He would have to be at the race but not behind the wheel for pulling this stunt.

[Cindy_AL]

Yes, there are alot of drivers who would jump at the chance to drive for DEI BUT if they are only getting mediocre cars, what does it matter. If DEI lucked out and found an exceptionally talented driver in the lower ranks, how long will a good driver stick around while being given 2nd class equipment? The only reason Jr stayed around so long was because of his Dad.
Im sure Mikey would probably be thrilled to come back to DEI... I think Steve Park is available as well.

Im sure that Teresa has come to her senses by now and seen the reality of it all. She will probably do all the things that Jr begged her to do and when the next driver is finally winning races for DEI, she will get all the glory & praise that Jr stood to inherit had she listened to him instead of denying him the one thing he wanted more than anything..... to win a championship under his Dad's company.

[Cindy_AL]

It's a good thing I don't run the team I would stand him down for the rest of the season. He would have to be at the race but not behind the wheel for pulling this stunt.


Then he wouldnt have to worry about injuring himself in an accident. ;)

[e2mtt]

...

It's a good thing I don't run the team I would stand him down for the rest of the season. He would have to be at the race but not behind the wheel for pulling this stunt.

HAHAHAHAHAHAHA

And then maybe Budwieser and Wrangler and Chevy would stop paying you?

Cindy_Al is right here, RaceFanStan is wrong. Dale is a very good driver, good enough to challenge for the championship every year with the right support. He is also BY FAR the most popular driver, and sponsorship is a popularity contest, not really a points and standings contest.

Dale Jr. may not have inherited quite all of Dale's driving skills, but he did get a lot of business sense too. If, during negotiations, Dale realized that Teresa wasn't willing to do what needed to be done to make him a real championship contender, of course he wouldn't want to resign. He couldn't go for too long unsigned, as rumors fly, so thus the anouncement now.

Now the best thing Teresa can do is help Dale run as well as possible, to make it easier to hire decent drivers next year. If Dale and Martin continue to struggle, nobody but a retread or a rookie will take a DEI drive.

[harvick#1]

:s nore:

[Jonesi]

Yes, there are alot of drivers who would jump at the chance to drive for DEI BUT if they are only getting mediocre cars, what does it matter. If DEI lucked out and found an exceptionally talented driver in the lower ranks, how long will a good driver stick around while being given 2nd class equipment? The only reason Jr stayed around so long was because of his Dad.
Im sure Mikey would probably be thrilled to come back to DEI... I think Steve Park is available as well.

Im sure that Teresa has come to her senses by now and seen the reality of it all. She will probably do all the things that Jr begged her to do and when the next driver is finally winning races for DEI, she will get all the glory & praise that Jr stood to inherit had she listened to him instead of denying him the one thing he wanted more than anything..... to win a championship under his Dad's company.

DEI cars aren't mediocre (yet) but they aren't championship level either. They are falling behind in tech but they are still 2nd of 5 tiers. That means there are only about a dozen cars better than them, and about 30 drivers that would jump at the #8 ride if offered (and they were available.) I think they will go with an experienced driver for a one to two years. People are forgeting that Teresa has a future "ace up her sleeve" in the form of signed development driver Jeff Earnhardt.

[Phoenixent]

HAHAHAHAHAHAHA

And then maybe Budwieser and Wrangler and Chevy would stop paying you?



That would be fine on the sponsors not paying. By Jr should have waited for later in the season to tell the world. There is a lot more to a team then just a driver. The effects on moral of the crew is what you have to worry about. Their performance is shot for the rest of the season thanks to Jr.

[Cindy_AL]

It only takes that dozen that are better than DEI to make the chase and leave DEI on the outside looking in... AGAIN.

Jeff Earnhardt is Kerry's son, right? If I remember correctly, Childress did more for Kerry than Teresa ever even attempted. Everyone knew Kerry just didnt have enough experience, etc but Childress at least gave him a chance more than likely out of respect for Dale Sr. Jeff may get his foot in the door at DEI but I doubt he will ever feel the obligation to stay there like Dale Jr did. So, he may bear the Earnhardt name but just like any other top driver, if DEI fails to produce top of the line equipment, he will bolt too.

[Cindy_AL]

That would be fine on the sponsors not paying. By Jr should have waited for later in the season to tell the world. There is a lot more to a team then just a driver. The effects on moral of the crew is what you have to worry about. Their performance is shot for the rest of the season thanks to Jr.


Read the article released this afternoon where Eury Jr spoke about Dale Jr leaving DEI. I cant remember if it was nascar.com or somewhere else but it didnt sound like the moral of the team was down. Sounded like more than ever they are motivated to win a championship for DEI.

Gotta remember that everyone involved has to prove themselves now. Whether they want to stay or go, they need to show their worth. I have a feeling that Jr would want to take his whole crew with him. Alot of the guys have been with Jr for a long time and we all know how important a well-gelled crew is. Its obvious that Eury Jr wants to go with Dale.

Its not unusual for an announcement like this to happen this early in the season. Dale has been hounded about it by the media since December. Now that its out in the open, maybe he can concentrate more on racing.

[muggle not]

Bottom line. It was a boo-boo of Teresa's that will go down in history. Like sparky stated, Jr's worth in monetary terms to DEI was huge. DEI immediately lost a small fortune.

[Sparky1329]

Teresa doesn't seem to be struggling on the business side of things. It's the racing side that's left wanting. Jr made a comment a few years ago that the Boss Lady needed to loosen the purse strings for the race shop.

[Hoss Ghoul]

That would be fine on the sponsors not paying. By Jr should have waited for later in the season to tell the world. There is a lot more to a team then just a driver. The effects on moral of the crew is what you have to worry about. Their performance is shot for the rest of the season thanks to Jr.

The exclusive contract negotiation window between Earnhardt and DEI was going to expire May 31, so absent a signed deal this was going to be a story in about 20 days no matter what. The media feeding frenzy would have been the same, if not worse, if that date came and passed without an announcement.

[Jag_Warrior]

You may be right but I don't see it, Stan. On ESPN yesterday they cited figures that indicate Jr's worth at DEI represents 65% of the company's value.

Forbes valued DEI at $57 million in 2006. So with him leaving (with his 65%), that theoretically knocks DEI's value down by over $37 million. :eek:

And... Dale, Jr. was asking for basically $29 million (51%)? :confused: I take it that Dale didn't marry Teresa for her math skills...

See, this is why I stay on my young cousin to take as many math classes as possible. You move on in life and get to a point that you don't realize that 29 is less than 37... and life puts a hard foot in your beeehind.

My prediction is Dale, Jr. (or someone else) will be able to buy DEI in five years or less. And they'll pay a helluva lot less than $29 million for it.

Wonder if they'll start selling these at the DEI trailer from now on?
http://splashpages.com/wood/gallery/images/kickmehard.jpghttp://splashpages.com/wood/gallery/images/kickmehard.jpg

[tstran17_88]

This could rank right up there with Portland picking Sam Bowie over Michael Jordan and Green Bay picking Tony Mandrich over Barry Sanders.

[trumperZ06]

;) Actually... it's more likely to be simular to...

the Atlanta Falcons letting Bret Faure go to Greenbay.

[Mark in Oshawa]

I was down in Alabama when this hit and it was all the radio jocks could talk about. I heard 100's of opinions and have read about all of this in about 5 different papers. What I keep noticing though is very few people think DEI made the right move. Stan does, but he keeps thinking Jr. isn't his dad. Stan, No @#%^ he aint his dad. Jr. never claimed to be that either. All he wanted was to win a championship for his dad's team.

Teresa wouldn't give him the resources or people in the raceshop to do this. Since Dale Sr. died, the top teams have pushed forward in facilities and manpower while DEI has sat where they were. Jr. had one ace in his sleeve in that his personal relationship with Budweiser was bringing in the dough and PR kick that is keeping DEI in the 2nd tier of teams and he wanted 51% of the business to grow the team into where he thinks it should go to WIN. Teresa just said no. So now we see who is right. One thing tho, Jeff Gordon, Smoke and others have all said the same things most of us are saying. DEI is DEAD meat without Jr. I don't think those close to the business are going to say these things just because they are Jr's buddies, they are saying it because THEY know no top flight driver will run for DEI. NONE. If DEI wants on top after Jr. leaves, they will do it with resources and management they denied Jr., and they will have to do it with an unproven and unknown talent, because no one with any repuation and ability will be there in 3 years. Jr. won 2 Busch Titles, Truex won one and has shown some promise, and yet they cannot get up into the Chase because the equipment just isn't there. It was when Sr. was alive, because Sr. would spend the dough. Teresa wont. She is a great business woman for things outside of what goes on in the race shop and as time goes on, we will see this.

Jr. may NEVER win a championship. He may never be more than an average driver but the thing is he is all the credability and professsional image that DEI has. His PR image and persona were keeping DEI in the game...you take that away and DEI is just an empty shell....a Museum...except RCR has all of Sr.'s race cars.....so it isn't much of a museum is it?

[tstran17_88]

;) Actually... it's more likely to be simular to...

the Atlanta Falcons letting Bret Faure go to Greenbay.

It's funny...at the time, the Green Bay faithful were pizzing & moaning that the Packers gave up a #1 pick for Fav-ray.
I guess Ron Wolfe, who was still with the NY Jets, had his eye on Brett all along, but the Jets didn’t want to draft him. So which team made the bigger blunder?

[Mark in Oshawa]

Detroit....cuze they keep drafting receivers and have no quarterback to throw to them...

[e2mtt]

... All he wanted was to win a championship for his dad's team...

Well said, Mark. Well said. (The whole post)

[tstran17_88]

Detroit....cuze they keep drafting receivers and have no quarterback to throw to them...
I, for one, praise all the personnel moves the Lions have made over the past 15 years. :D

[e2mtt]

Well it is really tough being a Dolphin fan these days too...

[Old3Fan]

I agree with you Stan on this one. If Jr wants to make his own way fine. But it's a tough row to hoe.

Teresa will come out just fine on this as she was the business mind behind Dale Sr.

Jr. on the other hand will have to step up to the plate. He would have any excuss for poor performance because DEI is not in the picture any more.

It's a good thing I don't run the team I would stand him down for the rest of the season. He would have to be at the race but not behind the wheel for pulling this stunt.

Good thinking. Stand down the most popular driver in Nascar and watch your $$$$$$$$ intake drop to Zero on t-shirts, caps, diecast and all the other red stuff you see being bought by 90% of the people in the grandstands. Jr. wants to win now and DEI isn't up to fielding a winner with equipment and personnel etc. I think his best fit will be with RCR but I suspect that Shrub is going somewhere and JR is going to Hendrick. He will be #3 behind Gordo and Jimmy but with Hendrick equipment and dedication to winning at least he will have the chance of doing alot better than where he has been going with DEI the past couple of years and hopefully he will prove to us believers that he is what we thought he would become.

[Phoenixent]

Good thinking. Stand down the most popular driver in Nascar and watch your $$$$$$$$ intake drop to Zero on t-shirts, caps, diecast and all the other red stuff you see being bought by 90% of the people in the grandstands.


If Jr. was injured or worse fans would still buy T-Shirts, Caps and other red stuff. They still buy his fathers stuff and he has been gone for 6+ years.

Since when has an employee been in charge of any company that's privately owned by somebody else? He is a employee of DEI until his contract is up he should just buckle up and get the job done. All this whining about DEI and Teresa is bull most people don't even know how to run a business let alone a multi-million dollar company.

Besides doesn't Steve Himel run the everyday operations at DEI?

[Hoss Ghoul]

Since when has an employee been in charge of any company that's privately owned by somebody else?

That's a fair point, however, the idea behind Earnhardt's moves was to purchase the compnay, thus rendering this argument irrelevant.

On the other hand, as a business person, your idea of "benching" your number one assett is assinine at best. Of course if you think firing your best employee during peak season with no backup and a sure customer backlash is good for business...

[Phoenixent]

That's a fair point, however, the idea behind Earnhardt's moves was to purchase the compnay, thus rendering this argument irrelevant.

On the other hand, as a business person, your idea of "benching" your number one assett is assinine at best. Of course if you think firing your best employee during peak season with no backup and a sure customer backlash is good for business...

Benching and Firing are two different things. Benching would be a stand down for a period of time. As with all companies the employees even top ones have to face some type of punishment if they do or say something that is detrimental to the company.

I did not hear that Jr. was willing to buy with cash 51% of DEI. I heard that he wanted 51% given to him as part of the contract. Big difference between the two.

[Jonesi]

I did not hear that Jr. was willing to buy with cash 51% of DEI. I heard that he wanted 51% given to him as part of the contract. Big difference between the two.

Jr was willing to buy 51%, the question is what is the value of DEI. Teresa thinks the company is worth $100mil (the same as Roush's five teams) I saw one press comment that Forbes or WSJ valued DEI at $65mil.

[Ted S]

Dale, Jr is popular and a cash cow, but this negotiating process is not over. His options are limited especially if he wants to stay with Chevy. Why should Teresa give hime the team? He's not exactly the best driver; MAYBE top 10.

[jslone]

Bottom line is this,lets all see how jr does on the new team,whether its a contender or a second tier team.Also lets see how he does with second rate equipment,at DEI he was the top dog, as it was,so if he does go to a top team,were well he stand on cars and such.I wont even go with the rest of the new team,from the pit guys,to the garage guys,we shall see.

[Old3Fan]

[quote="Phoenixent"]If Jr. was injured or worse fans would still buy T-Shirts, Caps and other red stuff. They still buy his fathers stuff and he has been gone for 6+ years. [quote]

They sure would but not the red ones with an 8 on them. They will be Dale Jr's new colors and number and diecast etc, not the old. His fans are loyal to him, not DEI.

[Jag_Warrior]

Jr was willing to buy 51%, the question is what is the value of DEI. Teresa thinks the company is worth $100mil (the same as Roush's five teams) I saw one press comment that Forbes or WSJ valued DEI at $65mil.

http://www.motorsportforum.com/forums/showpost.php?p=264733&postcount=19

If the WSJ came up with $65 million, that's close enough to $57 million for guberment work.

Even with RCR engines, I don't see DEI attracting a championship caliber (or even a winning) driver, once this PR disaster is finally over. Without taking this in another direction, Teresa might have learned something from a fellow named Tony George. Sometimes 100% of a shrinking pie isn't as good as sharing a great big ol' peach cobbler. And being left with a little slice of pie with ants crawling on it... what good is that?

No doubt, Dale, Jr. and his sister would have given Teresa loads of grief, with him/them controlling 51%. But since she couldn't drive the race car herself, maybe she should have kept her yap shut several months back. Other than a building, the most valuable asset she controls now is probably the licensing rights to Dale Earnhardt's name and likeness.

It took Richard Childress to support Kerry's son, as he begins his racing career. I've seen him race a couple of times and the little fellow is pretty good. But I doubt he'll end up driving for DEI, unless there is a buyout or merger at some point. What is it with this family? Where did the bad blood come from? Did Dale dump the kids' mother to hook up with Teresa?

But I just don't see how her strategy is going to play out to her benefit. I'm not even sure that she has a strategy.

[Sparky1329]

One report that I heard or read was that Dale Jr's sponsorship bucks and presence at DEI represented 65% of their value. Letting that kind of worth walk away from your company doesn't sound too smart to me.

[nigelred5]

It's a good thing I don't run the team I would stand him down for the rest of the season. He would have to be at the race but not behind the wheel for pulling this stunt.

Pulling what stunt? Nascar drivers with far less clout and fan appeal announce next year's contracts or their intention to leave early all the time, hell, sometimes more than an entire season beforehand. The only stunt JR pulled was calling her bluff and taking the name out of the organization. Daddy didn't start DEI for himself, IIRC he started it for JR to race in cup. Pull Jr's endorsements and his name from DEI, and it's another mid pack organization looking for sponsors and a partner to keep up. Do you really believe Budweiser is gonna just say, ok, we'll stay, It's not Jr we want, it's DEI. I'm sure JR and Budweiser discussed their relationship long before he made the decision.

[nigelred5]

I agree with you Stan on this one. If Jr wants to make his own way fine. But it's a tough row to hoe.

Teresa will come out just fine on this as she was the business mind behind Dale Sr.

Jr. on the other hand will have to step up to the plate. He would have any excuss for poor performance because DEI is not in the picture any more.

It's a good thing I don't run the team I would stand him down for the rest of the season. He would have to be at the race but not behind the wheel for pulling this stunt.

Hell son, he called her bluff and laughed at her cards. DEI with out a DALE Earnhardt in the mix is just another team.

[nigelred5]

If Jr. was injured or worse fans would still buy T-Shirts, Caps and other red stuff. They still buy his fathers stuff and he has been gone for 6+ years.


They sure would but not the red ones with an 8 on them. They will be Dale Jr's new colors and number and diecast etc, not the old. His fans are loyal to him, not DEI.

True that. She only owns the 8. See how many 8 decals sell next year when Jr is driving somewhere else.

[nigelred5]

http://www.racingmilestones.com/news_images/TeresaEarnhardt.jpg


http://www.biology.duke.edu/cunningham/figures/tremaine1.jpg

[NASCARWidow]

If Jr wants to find another championship caliber team, he needs to have his name in the mix now, not 6 months from now when most decisions have already been made. Everyone in the business knew that after May 31st he was going to be a free agent unless a compromise was reached. He just went ahead and told the world that a compromise wasn't going to happen. Maybe he thought he could rattle Teresa's cage and she would change her mind, who knows. Does Dale,Jr deserve to have 51% of DEI, that's debatable. But, Teresa standing firm in her decision not to give it to him might not be the best business deal though. She retains 100% of DEI but the marquee driver will be gone so it is very possible that her 100% will be worth less than her 49% would have been had she given in. Only time will tell. It could be that one of the best things in the world will be for Jr to drive for someone else. Someone who isn't family. Someone who can fire his butt if he doesn't get the job done. Again who knows.

[Mark in Oshawa]

Time will tell. That said, any time your biggest draw for sponsor money walks out the door with such fanfare, short of hiring Tony Stewart, Jimmie Johnson or Jeff Gordon, you are going to lose marketing clout. Dale Jr. is one of the biggest draws ever in NASCAR and Teresa let him walk out the door because she wont give an inch on ownership. Well, she got her way, but I fail to see how she benefits....