A couple of sources are reporting that Teresa Earnhardt is looking to sell Dale Earnhardt, Incorporated, and one of the prime candidates to buy the team is Max Siegel, the team's President of Global Operations. She's reportedly hired Bear, Stearns to dispose of the entire operation.
The deal, according to one source, is that Teresa would get between $115 and $130 million for the company, but she would keep all rights to the "Dale Earnhardt" and "Intimidator" trademarks, which would keep her in the money for a good long time.
The buyer would get the DEI property and race teams.
This could well be the best thing Teresa Earnhardt has done for the team since she took over running it after the death of Dale Earnhardt in 2001. Derided as a "deadbeat owner' by driver Kevin Harvick (who owns Kevin Harvick, Inc and has teams racing in three series himself) because she is rarely seen at the racetrack, there is little positive that anyone can say for Teresa's business acumen since the death of Senior, except that she's kept the Earnhardt mechandise gravy train rolling.
Under her watch, DEI has made a series of mis-steps, and the company was headed into a downward sprial until the arrival of Siegel in 2006. Even after his installation, friction between Teresa and marquee driver Dale Junior (their relationship "ain't no bed of roses," Junior said at the time) ended in his leaving the company, a move that Junior Nation widely regards as her fault and which they're not in a hurry to forget or forgive.
Fan venom against her is reportedly one of the reasons the already-reclusive Teresa wants out. Taking the high road, Junior asked that the "Reason #88? Step-Mom" billboard at Texas Motor Speedway be changed earlier this year, but the fact that track owner Eddie Gossage would even propose a sign with a side-swipe at a team owner speaks volumes about Teresa's reputation.
The new owner will find himself owner of a team in flux: Mark Martin is leaving the 8 car in the hands of relative newbie Aric Almirola, the 01 car driven this year by Regan Smith has no primary sponsor (and will be cut next year if that can't be remedied), Paul Menard's primary sponsor, his father, may be preparing to jettison Cup racing sponsorships, which would leave the 15 car blank, and Martin Truex, Jr is in serious danger of missing the chase after a lackluster season and a COT rules infraction that will cost the team 150 points. Truex has yet to sign his new contract and may be looking to leave DEI.
The sale would make Junior Nation happy. It might also make the company a viable contender again, depending on who buys it. Last year, Tony Stewart said DEI without Junior would become nothing more than "a museum," and while that didn't happen immediately, it still might, if the ship isn't righted.
Selling ought to make Teresa happy, too, since it's been clear that running a NASCAR racing team hasn't been all that interesting to her for some time. Her financial future is pretty well ensured if she keeps the rights to the Earnhardt trademarks, and that's all she really needs.
Comments (5)
After visiting DEI during the Charlotte 600 week, I found it already is a museum. I was willing to give her a chance to survive at least 5-6 years with Max on board, but the place was like walking into a mortuary. I admired Dale Sr. for what he accomplished and he was definitely one of the sports icons, however Theresa has her head in the sand. She has let that business go so far down, I wouldn't blame Jr. if he didn't want to own it. It is going to take a lot of work and money to recover and rebuild that organization. I like the drivers over there and feel like they are certainly not getting the equiptment they need to complete. Theresa has made an unforgivable error in allowing Jr. to not have a portion of that business to maintain it properly. It appears she wouldn't even consider sharing it with all of Dale's children so that it would remain a viable team.
Posted by Norma Borst | July 8, 2008 6:28 PM
Posted on July 8, 2008 18:28
So, Teresa has decided to "take the money and run", no big surprise....After she has taken what really meant something to Jr. and the rest of Dale's kids away and turned it into a travesty of what is once was, now she is ready to once more sit back and let Dale and his name secure the rest of her future. I am quite sure this is NOT what our "man" had in mind......
If Jr. is considering going Cup--?????
Posted by nancy vh | July 9, 2008 10:41 AM
Posted on July 9, 2008 10:41
Even tho Teresa had a great head for the business while Dale was alive, I just don't think her heart has been in it since then. She had the business sense but Dale had the fire that fueled the whole organization.
I'm sure the jr. nation will be thrilled. Heaven forbid anyone does their little man wrong. I always believed Teresa and Jr. needed a time out from each other and it's stupid to think that Teresa was the only bad guy in this mess. Jr. played the poor step kid to the hilt with the media and fans. He knew exactly what he was doing, but Teresa didn't buckle under and hand everything over to him. Teresa and ALL the kids will never have to worry about money and I'm sure the bottom line for Dale would be that. Maybe his dream for DEI did die on Feb 18, 2001 right along with him, BUT his family will be taken care of in years to come. Jr. will probably end up richer than his dad ever was, if he isn't already so lets don't shed anymore tears for him. Hope Teresa can get out and still enjoy the rest of her life.
Posted by Marti | July 9, 2008 12:11 PM
Posted on July 9, 2008 12:11
It's interesting along with the highlights or lack there of from the race teams the DEI web site has highlights from Taylor Earnhardts barrel racing career which appears to be more successful than the DEI Nascar Division at this point. Now being a parent I know how you are proud of your kids accomplishments but to me this appeared maybe being a off topic to be posted on a site supposedly devoted to the sport of stock car racing. For those of us who were long time fans of Dale Sr. her grieving widow in the big house act is grown rather stale, we have all lost people we love but there comes a time you have to turn the corner and go on, I doubt if the situation was reversed you would see Dale Sr. selling DEI from grief. Even with all commotion last year she remained aloof and uncommunicative to the very fan base that bought all her merch and kept her in that big house all those years Dale Sr. was still alive. I like most never fell into buying Dale Sr. post humus gear thought it was creepy then and still do, seeing those trailers at races peddling tee-shirt for a dead man is just wrong in oh so many ways, I chose to remember him alive not as a logo. If she sells out to those sharks she imported last year to run DEI will tell the whole story about why Jr. couldn't get her to deal last year as her long range goal was a dump and run all along. I wish her the best in her attempt to keep Dale Sr.'s memory alive without any connection to stock car racing maybe QVC or the rodeo circuit will still buy her tee-shirt and caps because I've really kind of over it.
Posted by Callaway | July 9, 2008 2:22 PM
Posted on July 9, 2008 14:22
"A couple of sources"?
Where are the sources? I scoured the internet and didn't find any credible source. Only gossip on blogs like this one. Anything I found regarding Theresa said that she is looking into a "Partnership", much like what Roush did with Fenway. I dont find anybody saying she's selling. If I were to write "a couple sources", I would supply the source.
Posted by Brian in Evans | July 11, 2008 10:17 PM
Posted on July 11, 2008 22:17