Most of the debate in NASCAR this season has been centered around four general themes - can Toyota catch up to Chevy, Ford and Dodge and perform consistently this year, will Michael Waltrip make another race this season, how will the Car of Tomorrow perform in race conditions, and where will Dale Earnhardt, Jr., race in 2008.
It’s the contract negotiations that I’ll focus today and thus bore one of my more loyal readers. Rumors have begun to circulate in the past few weeks that a deal between Earnhardt Jr., and Dale Earnhardt Inc., will be made soon. Earnhardt Jr., arguably one of the most recognizable names in stock car racing, is in the final year of his contract with DEI and is looking for a new deal, plus ownership of DEI. ESPN has been reporting that 51 percent of DEI has been offered to Earnhardt Jr., for purchase. To put the cost in perspective, as The Associated Press’ Jenna Fryer has reported, the Boston Red Sox’s John Henry paid $60 million for a minority stake in Rousch Racing.
Earnhardt Jr., would have to come up with most likely that much to take over 51 percent of DEI. Ownership is not going to be transfered without some kind of cash transaction between Earnhardt Jr., to DEI, though Earnhardt Jr., and Kelly Earnhardt Elledge, Junior’s sister and business manager, contend that the business was to be left to Dale Earnhardt’s children.
Regardless of the ownership battle, the question that remains for consideration should be is ownership something Earnhardt Jr., really needs at this point in his career? Let’s focus on the history of the sport and not the emotional side of having Earnhardt Jr., taking control of his dad’s operation. Owner-drivers have historically had a more difficult time contending for championships, in the past 30 years, than their counterparts that only have to deal with racing. The late Alan Kulwicki is the last owner-driver to win the NASCAR championship, doing so in 1992. Ricky Rudd, Geoff Bodine and, currently, Michael Waltrip and Kyle Petty, have done the owner-drive routine to mixed results. Rudd was competitive and contended for championships, but could never get over the hump to win the title.
What would owning DEI do to Earnhardt Jr.’s career, who has not seriously contended for the cup title in two years and best finish in the points is third. What would the demands of day-to-day operations do to Earnhardt Jr.’s performance on the race track? If the season ended today, Earnhardt would be on the outside looking in to the NASCAR postseason as he sits 15th. The top 12 are invited to the postseason.
There is no question that Earnhardt Jr., should have some ownership of DEI, but is now the time? I think it’s questionable. As Humpy Wheeler said during a promotional event for next month’s all-star race, it’s ultimately all about where Earnhardt Jr., believes he can win and secure a championship.
Could that be at DEI? Possibly. Could that be at Richard Childress Racing, which would likely be the destination of choice for Earnhardt Jr., if contract negotiations stall with DEI? Possibly.
One thing is for sure, winning and finding the best situation should be the top priority. Owning DEI should be a secondary concern at this point.
