[jks812]

Tactical error
By Dan Wetzel, Yahoo! Sports
May 10, 2007
The Boston Red Sox once sold Babe Ruth so its owner could fund a play. The Portland Trail Blazers once passed on Michael Jordan. The Minnesota Vikings once traded five players and six draft picks for Herschel Walker.
None of those moves were as disastrously bad as the one Teresa Earnhardt made when she thought she could call Dale Earnhardt Jr.'s bluff about leaving his late father's racing team.
Her stepson was serious. Painfully so for DEI.
Thursday at his JR Motorsports headquarters in North Carolina, Earnhardt Jr. announced he is leaving DEI. Whether he is going to drive for his own team or will join an existing competitor is not certain.
What is known is that he'll still be sponsored by Budweiser, still will drive a Chevy and, of course, still be the overwhelmingly most popular and recognizable driver in NASCAR.
Only now, he'll be doing it for even more money and even more (if not total) control.
Junior had asked for a majority stake of DEI to stay. No one yet knows how negotiations between Junior and Teresa broke down – maybe Teresa really did all she could, but it doesn't seem like she was willing to give Junior the 51 percent control he wanted. Now she has 100 percent of a company in ruin.
Financially, the best move for Junior would be to expand his JR Motorsports, currently a Busch Series operation, to Nextel Cup, where he and current teammate Martin Truex could form a two-car team. With engine and technical support from Hendrick Motorsports, winners of seven of the season's 10 races, it could be a formidable team from Daytona on.
Most importantly, it would allow Junior to control the outrageous revenue he brings in, cashing in on the popularity that made him bigger than DEI, even if DEI couldn't realize it.
Since his father's on-track death in 2001, Earnhardt Jr., now 32, has become the driving force in all of NASCAR. He has what, half the fans? Sixty percent? Seventy? Any track, any weekend is a home game for Junior, as a sea of red-clad worshippers make him more beloved than his nearest competitors – the likes of Tony Stewart and Jeff Gordon – combined.
When Junior takes the lead the place goes nuts. When someone bumps him into a wreck, they'll be met, eventually, with a hail of boos and beer cans from the grandstands.
There essentially is nothing else like it in sports. Only Tiger Woods controls golf in the same manner – assuring crowds, television ratings and revenue. But Woods doesn't play every week, and culturally golf and NASCAR fans are little alike.
Even so, you wouldn't see Nike Golf let Tiger walk under almost any circumstances. You wouldn't see Nike co-founder Phil Knight assume he could just rebuild the division with someone else. Nike knows Tiger is the golf division.
That Teresa Earnhardt didn't see the same in her stepson is stunning. Maybe she really never does show up at the track? Maybe she really never talks to Junior and still thinks he was some silly, hard-partying kid who didn't know the difference between tens of millions and hundreds of millions?
Whatever it was, it was a colossal miscalculation.
If both Junior and Truex leave (Truex's future is unknown), DEI's Nextel Cup driver stable would consist of rookie Paul Menard and, uh, yeah, that's it.
It will still have the Intimidator's likeness to sell – a considerable cash stream. And Jeffrey Earnhardt – Senior's grandson and Junior's nephew – is under contract, but he's 17 and several years away, if ever.
But other than that, it's a leveling of the company. By not sharing more with Junior, Teresa wound up with all of nothing.
Meanwhile, if Junior keeps this in-house at JR Motorsports (where his sister Kelley is president) he officially can begin to print money. His new operation will select its marketing partners from a crush of Fortune 500 companies.
In terms of merchandise sales, this could be historic; the most popular driver with a new car and number.
Many fans hope Richard Childress Racing would surrender the rights to Senior's No. 3 and allow Junior to run it himself, but no matter the number, there are millions of Junior fans now in the market for new T-shirts, bumper stickers, key chains, flag, tattoos and heaven knows what else. The No. 8 is obsolete.
It's like the New York Yankees changing colors. Only with more fans who are more loyal.
If Junior is as smart as he has demonstrated recently, he'd invest some of that revenue into a great CEO for JR Motorsports.
And that is, perhaps, why just joining an existing team, albeit with a hefty compensation or partial ownership deal, would be the better choice. The demands of being an owner-driver can become too big. It's a double responsibility that has proven extremely challenging for Michael Waltrip and Robby Gordon.
Earnhardt needs to concentrate mostly on driving.
Of course, it's not like he's been tearing up the track. The most remarkable thing about his popularity is that it is not – like Tiger Woods' – based on dominating the competition.
Junior never has won a Cup title, hasn't won a race in a year and has taken checkers just twice since 2004. Yet he has the most fans.
The on-track results had to factor into his decision to walk. It's not like DEI was giving him the best car each week to begin with. If they weren't going to meet his business demands either, what was the point? But for whatever reason, Teresa Earnhardt figured he wouldn't leave his daddy's company. Maybe she underbid him. Maybe she refused to give up control. Maybe she banked on a family discount. Whatever it was, she guessed wrong. Terribly so. The good news for DEI is it only took the Red Sox 86 years to recover from something so dumb.

[Lefty Noob]

You're 100% right, jks812, that's a fascinating article.

I'll be the first to admit that I'm still learning my way around today's NASCAR. Is Junior really that big - bigger than Stewart and Gordon combined? One thing's for sure here. Teresa better make sure she can re-sign Truex and keep him at DEI, or else sign someone away from another team, or that team is in serious, serious trouble.

[LSC9901]

Originally Posted by Lefty Noob

You're 100% right, jks812, that's a fascinating article.

I'll be the first to admit that I'm still learning my way around today's NASCAR. Is Junior really that big - bigger than Stewart and Gordon combined? One thing's for sure here. Teresa better make sure she can re-sign Truex and keep him at DEI, or else sign someone away from another team, or that team is in serious, serious trouble.

Is he big ?? Yes. I don't think there is much question there. He does have 17 wins. That isn't a massive number so what is it that makes him big. The number of victories is more than many drivers, less than some. Obviously (to me anyway) it is that the media has a lot to do with his popularity.

Is he bigger than Gordon or Stewart ?? Tough call. All three are totally different people. Jeff is a record breaking, non-southern, media mogul, winning driver. He is the all American NASCAR dream driver. Tony has abilities as a driver that will no doubt put him in the hall of fame. He also has a problem keeping his foot out of his mouth. Unfortunately that is how many see him and how he may be remembered. Dale is the son, grandson of a nationaly recognized racing family. He has that southern drawl that reminds us of where NASCAR started. He is a better than average driver ... the kind that has a large fan base.

If he is bigger it is all a media gift and a little bit of the family name.

As for DEI, I think they will be looking for a seasoned driver that has some wins left in them.

[Mike24]

Originally Posted by Lefty Noob

You're 100% right, jks812, that's a fascinating article.

I'll be the first to admit that I'm still learning my way around today's NASCAR. Is Junior really that big - bigger than Stewart and Gordon combined? One thing's for sure here. Teresa better make sure she can re-sign Truex and keep him at DEI, or else sign someone away from another team, or that team is in serious, serious trouble.

I don't want to start something, but the only reason Jr has any fame is because of Sr. Jr is just an ordinary race car driver, he's an Earnhardt, and that's why he's so popular. You can't control that.

[LSC9901]

Originally Posted by Mike24

I don't want to start something, but the only reason Jr has any fame is because of Sr. Jr is just an ordinary race car driver, he's an Earnhardt, and that's why he's so popular. You can't control that.

This is where we get into exactly what do you mean when you say ordinary ??? Is ordinary equal to average ? Is it less than average ? Better than average ? Is this an opinion or based on stats ?

On a list I found it gives 171 drivers who all have had a least one victory. Jr is listed as number 39. (above average ???) Of the 38 ahead of him there is one parttime active driver and 7 full active time drivers. So against all the remaining active fulltime drivers of today he is number 8. Number 9 counting Mark Martin.

Again I ask is your statement an opinion of factual ?

[Mike24]

Originally Posted by LSC9901

This is where we get into exactly what do you mean when you say ordinary ??? Is ordinary equal to average ? Is it less than average ? Better than average ? Is this an opinion or based on stats ?

On a list I found it gives 171 drivers who all have had a least one victory. Jr is listed as number 39. (above average ???) Of the 38 ahead of him there is one parttime active driver and 7 full active time drivers. So against all the remaining active fulltime drivers of today he is number 8. Number 9 counting Mark Martin.

Again I ask is your statement an opinion of factual ?

I can't say he's great, he's no where close to being great, driver wise. But I will say he is a above average driver that can win. He has talent yes, but he hasn't shown all of his abilities to win. I think he will learn those with the new team he goes to.

[LSC9901]

Originally Posted by Mike24

I can't say he's great, he's no where close to being great, driver wise. But I will say he is a above average driver that can win. He has talent yes, but he hasn't shown all of his abilities to win. I think he will learn those with the new team he goes to.

You sound as though you are saying two different things but I will agree with your second attempt at describing him.

[Souporscotty]

Where does this leave Kelly? I know she runs JR Motorsports, but didn't she want a piece of DEI too?

[Lefty Noob]

Originally Posted by Souporscotty

Where does this leave Kelly? I know she runs JR Motorsports, but didn't she want a piece of DEI too?

She was listed as Junior's business manager at the press conference, so apparently she's going with him and away from DEI. If he does wind up signing with someone else, I'm not sure if she becomes an agent, runs JR motorsports or what. I guess they'll cross that bridge when they come to it.

[jks812]

She'll probably keep doing what she's been doing, taking care of Jr and running JR Motorsports.

[Racer Duck]

Originally Posted by Lefty Noob

You're 100% right, jks812, that's a fascinating article.

I'll be the first to admit that I'm still learning my way around today's NASCAR. Is Junior really that big - bigger than Stewart and Gordon combined? One thing's for sure here. Teresa better make sure she can re-sign Truex and keep him at DEI, or else sign someone away from another team, or that team is in serious, serious trouble.

independent of any skills he has as a racer, Jr. is in the big leagues in one catagory: favorite driver - the fan voted award.
Here's how it stacks up right now:

1. Bill Elliott - 16
2. Richard Petty - 9
3. Bobby Allison - 7
4. Dale Earnhardt, Jr. - 4 (2007 will make 5 in a row)
5. (tie) Fred Lorenzen & Darrell Waltrip - 2

There's about a dozen other drivers with 1, including Sr., Cale, Pearson, Fireball, Glenn Wood and Junior Johnson.

Gordon and Stewart aren't on the list.

That translates into $$$ and $$$ translates into power.

[Bob Tanner]

Originally Posted by Lefty Noob

I'll be the first to admit that I'm still learning my way around today's NASCAR. Is Junior really that big - bigger than Stewart and Gordon combined? One thing's for sure here. Teresa better make sure she can re-sign Truex and keep him at DEI, or else sign someone away from another team, or that team is in serious, serious trouble.

Is Junior that big? Yeah, he's about that big, Lefty.

A measure of how big...? I heard a report yesterday that Junior, #8, and NASCAR?Budweiser merchandise accounts for about one-third of all such merchandise sold by authorized NASCAR stuff sellers. The total amount of these sales is kept more secret than Col. Sander's recipe but I've heard estimates of around $200 million in gross sales. Junior gets a cut of the net sales and my absolutely unprofessional SWAG at this figure is probably in the vicinity of...? $14-$18 million?

I'm betting that these are very conservative figures.

This is just for memorabilia. I don't know how much the endorsements, personal appearances, book royalties and investment profits and race track profits from tracks he is involved in, are but I'd guess that they at least equal the above.

All this is in addition to what he gets for strapping in a car.

He's not equal to Schumacher, Pele, Madadona, Tiger Woods, or some of the higher profile stick and ball types but he is in the same league.

Mike brought up a great point; he wouldn't be in this position if his last name wasn't Earnhardt. However, it is and nepotism being what it is, I can't fault Junior of his parentage.

However, I find it odd that it seems as though virtually EVERY person who had an opinion of Dale Sr. either good or bad, suddenly is ready to canonise him and make him "Saint Dale." As I remember it, prior to 2001 the majority of NASCAR fans were split about 50-50 over Dale Sr.; he was either loved or reviled. It would appear that almost as soon as Dale went room temperature, the Earnhardt detractors immediately converted to followers, enlisted in the Red Army and bought astronomical amounts of Junior and "In memory of..." stuff (to make their feelings of guilt go away?) and now deny being anything but life-long Earnhardt fans.

Junior has (I believe accidentally) been able to parlay this into transcendence from being a NASCAR star to a NASCAR Icon. Good for him. Maybe he's what this new, improved NA$CAR needs?

[Souporscotty]

Originally Posted by Bob Tanner

Is Junior that big? Yeah, he's about that big, Lefty.

A measure of how big...? I heard a report yesterday that Junior, #8, and NASCAR?Budweiser merchandise accounts for about one-third of all such merchandise sold by authorized NASCAR stuff sellers. The total amount of these sales is kept more secret than Col. Sander's recipe but I've heard estimates of around $200 million in gross sales. Junior gets a cut of the net sales and my absolutely unprofessional SWAG at this figure is probably in the vicinity of...? $14-$18 million?

I'm betting that these are very conservative figures.

This is just for memorabilia. I don't know how much the endorsements, personal appearances, book royalties and investment profits and race track profits from tracks he is involved in, are but I'd guess that they at least equal the above.

All this is in addition to what he gets for strapping in a car.

He's not equal to Schumacher, Pele, Madadona, Tiger Woods, or some of the higher profile stick and ball types but he is in the same league.

Mike brought up a great point; he wouldn't be in this position if his last name wasn't Earnhardt. However, it is and nepotism being what it is, I can't fault Junior of his parentage.

However, I find it odd that it seems as though virtually EVERY person who had an opinion of Dale Sr. either good or bad, suddenly is ready to canonise him and make him "Saint Dale." As I remember it, prior to 2001 the majority of NASCAR fans were split about 50-50 over Dale Sr.; he was either loved or reviled. It would appear that almost as soon as Dale went room temperature, the Earnhardt detractors immediately converted to followers, enlisted in the Red Army and bought astronomical amounts of Junior and "In memory of..." stuff (to make their feelings of guilt go away?) and now deny being anything but life-long Earnhardt fans.

Junior has (I believe accidentally) been able to parlay this into transcendence from being a NASCAR star to a NASCAR Icon. Good for him. Maybe he's what this new, improved NA$CAR needs?

As usual, dead-on Bob.

[Lefty Noob]

Originally Posted by Bob Tanner

Is Junior that big? Yeah, he's about that big, Lefty.

A measure of how big...? I heard a report yesterday that Junior, #8, and NASCAR?Budweiser merchandise accounts for about one-third of all such merchandise sold by authorized NASCAR stuff sellers. The total amount of these sales is kept more secret than Col. Sander's recipe but I've heard estimates of around $200 million in gross sales. Junior gets a cut of the net sales and my absolutely unprofessional SWAG at this figure is probably in the vicinity of...? $14-$18 million?

Wow, those are mind-blowing figures, Bob. I would love to know where he ranks among all athletes in merchandise sales.

[LSC9901]

Originally Posted by Lefty Noob

Wow, those are mind-blowing figures, Bob. I would love to know where he ranks among all athletes in merchandise sales.

I can tell you that he is responsible for about $150 million of the $500 million in sales of NASCAR items.