So long Dale Earnhardt Inc.

Jump to Comments

Dale Earnhardt Sr., started Dale Earnhardt Inc., to provide a racing organization for his children to continue their involvement in the sport, as well as to give him a role in the sport after his retirement. The Intimidator died in 2001 leaving his wife, Teresa, in charge and Dale Earnhardt Jr., as the lead driver.

Fast forward six years, and it looks as though DEI is on its final legs as Earnhardt Jr., is scheduled to announce tomorrow that he is leaving DEI to bring JR Motorsports, his own company, into the Nextel Cup Series. He is also bringing along Martin Truex Jr., to his team that currently runs in the Busch Series.

This brings an end, if the reports are true, the season-long speculation over whether Earnhardt Jr., was going to stay with DEI or leave for another team, with likely suitors being Richard Childress Racing, where his father won six of his seven championships, or Hendrick Motorsports.

The contract negotiations with DEI had been centered around Junior taking a majority ownership in the team, presumably at 51 percent at a cost of $60 million. If the reports are true, Junior is opting to promote his own organization to move away from DEI.

While we have questioned whether Junior is ready to take over a majority ownership for a Nextel Cup team, this move is a huge development and could essentially close DEI. The company stands to lose it’s top driver, likely it’s top sponsor in Budweiser, and its top prospect in Truex. DEI, with these losses, would be regulated to a lower-card program, instead of one of the top teams in the sport.

Where that it is important is in attracting new sponsors and drivers to replace Junior and Truex. Good luck with that.

What had promise to be a strong organization a few years ago is now left in ruins. It will be interesting to watch over the next few weeks to learn more about why Junior made this move and how DEI responds.

1 Comment

Filed under NASCAR, Sports