DEI’s Fall From Grace

Earnhardt Ganassi Racing’s decision to park its famed No. 8 Chevy is a sign of the economic times we’re in. But, it is also a sign of just how far the team has fallen.

And while I don’t know the reasons for some of the business decisions being made by Teresa Earnhardt, I suspect that pride and stubborness are leading to the mismanagement of the company that Dale Earnhardt Sr built.

Since Sr’s death, Teresa hasn’t had much interest in the sport, often skipping appearances at the track. She’s been called an absentee owner on several occasions.

She let pride get in the way when Dale Earnhardt Jr made his highly publicized bid for ownership in the company. Jr frequently complained that DEI was doing nothing to keep up with the competition. He contended that the team was not purchasing new technology that would help performance, and that the team was not expanding, despite being too big for its shop in N.C.

Teresa was so stubborn and arrogant that she let NASCAR’s most popular driver walk away, and expected the team to survive.

She wouldn’t even let Jr take with him the number he put back on the map. I can understand that the No. 8 has sentimental value to DEI, but it’s not like Jr and Rick Hendrick made an unreasonable offer. I think they also would have agreed to return the number, when Jr was finished with it. But, Teresa went out of her way to ensure that they would not get the number by seeking a percentage of licensing revenue.

Since Jr jumped ship, DEI has been a sinking ship. The team merged with Bobby Ginn Racing and Chip Ganassi Racing. It lost three sponsors in Budweiser, US Army, and Menards. It lost drivers Mark Martin and Paul Menard. And is rumored to be in danger of losing Martin Truex Jr and Bass Pro Shops.

Sadly, things will not improve until Teresa gives up control of the company, or she stops letting foolish pride and personal reason influence business decisions.

Pole Just What Truex, EGR Needed

In 2007, the sport’s biggest name, Dale Earnhardt Jr., announced he would be leaving the team his father built to go to Hendrick Motorsports.

The announcement led to questions about the future of Dale Earnhardt Inc. In addition, questions surrounded Martin Truex Jr.’s ability to become the face of the legendary team.

While DEI has never won a Sprint Cup championship, the team bears the name of a NASCAR icon. And for that reason, expectations are huge.

Jr.’s highly publicized departure seemingly looked to be the end of DEI. The team struggled in 2008.

Truex was hit with a 150 point penalty. Teresa Earnhardt was rumored to be considering selling the team. There were conflicting reports over Truex Jr’s option for 2009, which led to a fight with DEI’s president Max Siegel. Siegel eventually left the team. Mark Martin, like Jr., left the team for Hendrick. Paul Menard left the team for Yates Racing, taking his father’s Menard sponsorship with him. The team also lost its US Army sponsorship to Stewart Haas Racing and Ryan Newman. DEI was left with four cars, three drivers (Truex Jr, Aric Almirola, and Regan Smith), and one sponsor.

Enter Chip Ganassi Racing. CGR and DEI merged to form Earnhardt Ganassi Racing, virtually saving both companies. CGR brought Juan Pablo Montoya, and Target. He also had Wrigley’s signed for a half-year worth of sponsorship.

Things were looking up for the team, as EGR was said to be courting past champion, Bobby Labonte. But then, a deal feel through and Labonte was announced as the driver of Hall of Fame Racing’s No. 96, which has an alliance with Yates Racing.

When the dust settled from the offseason, and teams returned to Daytona International Speedway for practice for the 500, Truex unloaded with a fast car. He was in the top 5 in both practices. And when qualifying came around, he posted the fastest time, taking the pole.

This is exactly what EGR needed to do out of the gate. Taking the pole of the season’s biggest race will help this team put one of its toughest offseasons behind it.

While the work is not done yet, the team can pat itself on the back for a good showing in the first step of the Daytona 500. Next up, winning one of the Gatorade Duels.

Following Sunday’s showing, I for one will not be counting out EGR.

Gilliland Out At Yates?

With Hall Of Fame Racing forming an alliance with Yates Racing and signing Bobby Labonte to drive the No. 96 Ask.com Ford Fusion, David Gilliland figures he is the odd man out at Yates.

The team intends to field three cars this season, and, for those of you counting, the addition of Labonte and Paul Menard, who will drive the no. 98 Menards Ford, that leaves Gilliland and Travis Kvapil vying for that last ride.

Most expect Kvapil to be back next season, leaving Gilliland without a ride.

Gilliland said:

I haven’t actually had a sit-down with them, but I’m still under contract with them through 2009. So we’re just going to have to work through it, and hopefully, we can get something else going. It’s just kind of a bummer that it’s this late in the [offseason], you know? We’ll just have to see what we can come up with and see what we can try and do.

Ganassi, DEI Working On A Merger?

It has been reported that Dale Earnhardt Inc. and Chip Ganassi Racing may be working on a merger that would combine DEI’s Nos. 1 and 8 with CGR’s No. 41 and 42 next season.

CGR is also said to be considering a merger with Petty Enterprises.

Currently, CGR has one full time sponsor for next season (Target), and one part time sponsor (Wrigley’s). DEI only has one full time sponsor (Bass Pro Shops) and part time sponsorship for the team’s other two cars.

Paul Menard is leaving DEI at the end of the season to join Yates Racing, and he is taking his Menards sponsorship with him.

Petty Enterprises is also seeking sponsorship for its cars.

CGR fields Dodges, while DEI fields Chevys, which could be a potential stumbling block for any merger with DEI.

But, given Dodge’s performance in the sport and the current economic climate, a move from Dodge to Chevy may be possible.

DEI, Petty To Merge?

Rumor has it that Dale Earnhardt Inc. and Petty Enterprises are in talks to merge, but how a DEI-Petty deal would work remains unclear.

Earlier this year, Boston Ventures purchased a significant stake in Petty Enterprises. The team is seeking a sponsor for Bobby Labonte and its No. 43 Dodge, which lost General Mills to Richard Childress Racing’s No. 33 team and driver Clint Bowyer.

The team is also said to be at odds with Kyle Petty, who could leave and take the team’s only major sponsor, Wells Fargo, with him.

DEI is also searching for sponsorship, after US Army bolted for Stewart Haas Racing’s No. 39 and driver Ryan Newman. Paul Menard is leaving at the end of the season to go to Yates Racing, and he is taking his Menards sponsorship with him, leaving DEI with Bass Pro Shops as its only sponsor, on Martin Truex Jr.’s No 1 Chevy. DEI currently has Regan Smith and Aric Almirola on its roster, but sponsors for neither team.