2/14/2007

Dale Jr.: Will He Stay Or Will He Go?

Why is the #8’s on-track performance in jeopardy in 2007? Because there are so many variables and adaptations: the COT coming mid-season; new Chevy engine later in ’07; and whether the same driver will be in it in 2008.  (Sam Sharpe photo)

Is this the year that Dale Earnhardt Jr. and the DEI #8 Bud crew finally live up to their full potential and win the Cup championship? Or is this the year that re-signing negotiations between him and DEI team owner/stepmother Theresa Earnhardt over who controls DEI break down and are unresolved to each one’s satisfaction. Then, he leaves to write his future anywhere else in Cup racing or motorsports in general. He’s not too old to learn F1. Hey, if Juan Pablo Montoya can go stock car racing…

At this writing the contract issue is still in discussion and you can bet that plenty of parties want this signed, sealed and delivered -- not least of all DEI new-hire President of Global Operations, Max Siegel. There is a major negotiating point – Dale Jr. no longer wants to be treated like a Jr., and has gone on record as saying he wants majority ownership of DEI.

Why is this man smiling? Dale Jr. wants majority ownership of DRI from his stepmother/owner Theresa Earnhardt, when (if) he re-signs with the company his father founded. He is bargaining from a position of strength. (Kevin Thorne photo)

The personal relationship between Dale Jr. and his stepmother, Theresa, has never been conventionally “motherly.” He has that with his biological mother. Yet, there is plenty of emotional endurance between them – they were united after Dale Sr.’s death – and Jr. has always been respectful. A good Southern boy would be nothing but. One sent off to military school would also be so.

But it is six years since his father’s death at the Daytona 500 and he has matured and now knows his place in the sport, and is growing more into it. He has gone beyond being a racer to being a public star  – much as Tiger Woods or Michael Jordan or his father transcended their sports.

Why is this woman ready to negotiate? Thersa Earnhardt and her stepson have met hard challenges before, but this re-sgning negotiation is a test for them both. She will have to relinquish control of DEI for it to survive and grow.  (LMS/Harold Hinson photo)

Theresa Earnhardt knew how to deal with Sr. the star, but she can’t seem to do so with Dale Jr. the star. It is a brilliant move to call in the balanced lawyer Max Siegel (who has strong experience with stars) to work with Jr. because the emotion between these two people who share the same last name is ultimately counterproductive in the negotiations. If you thought the brokerage of the Peace Accords in the Middle East was tough, this deal rivals them for its emotional volatility.

Of course DEI is sealed up tight on any information leaks about this. When the Lowe’s Nextel Media Tour stopped by DEI, it was pointedly explained that any questions about the contract negotiations were off-limits. The vibe I get from sources is that the people who work there would just like it to get resolved quickly so they can get to work winning races. You can be certain, though, that resumes are being made up-to-date, just in case.

Winning races is something that the #8 has to do more consistently if the most popular driver in stock car racing is going to keep the goodwill he’s earned with the newer short-attention-span-theater fans of the sport. Jr. has always been about potential – living under what could be called crushing expectations – and he has amazingly maintained his sense of self-worth and accomplishment.

But he has become frustrated by the lack of consistency of his race team. You get majority ownership and you can fix that. There have been some internal management changes inside DEI too, which have made it tough for the #8 to stay consistently in the top finishing.

Last year was certainly an improvement over 2005, when his average finish was 20th (2006 = 13th), but just when it seemed he and the team were getting on-track consistency in ‘06, something derailed them. Sometimes it seemed Dale Jr. would “call out” his engine guys on TV – although the powerplants were reliable. Around Bristol Chevrolet teams are expected to start using their new engines – the primary (major) change is the cylinder heads are revised and completely new. Barrels of racing gas have been burning in the Chevy teams engine R&D sections for the past year-plus getting it ready. But it is another variable in the 2007 on-track mix.

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