A Memo To Dale, Jr... JUMP!!!

LewTheShoe

Seeking Skill-based Meritocracy... More HP Less DF
Joined
Apr 21, 2016
Messages
4,574
Points
593
JR Motorsports' move into the Cup Series remains stalled by "analysis paralysis," where it has been bogged down for the last two years.

In 2020, Dale Jr. said all they needed was a charter to pull the trigger for launching a Cup team when the Next Gen car was introduced, but charters were going for ~$5-6 million and he feared that high price might be a spike that wouldn't last. One year ago, when charters were ~$10-12 million, he was saying the same thing. Now with charters being quoted at ~$28-30 million, he's still singing the same song.

Seems to me that JRM would be well-positioned to attract sponsorship, as the magnetism of Dale himself as owner has a lot of pull. Also, a strong technical alliance with HMS seems doable. He'd need a solid driver, hopefully a top-15 regular. Mostly, he needs the courage to stop the analysis and pull the trigger.

I see you standing on the ledge, Dale. Jump, dude, JUMP! Now is the time.


 

Hotrod

2022 RFFL Champion
Joined
Feb 8, 2017
Messages
3,291
Points
443
Gonna take a giant corporate sponsor to pay that bill.
I'm sure if one steps forward, he'd go. Otherwise he stays
with his current teams. I'd like to see him do an SRX date or 2.
 

Team Penske

Team Owner
Joined
Jan 16, 2015
Messages
7,473
Points
643
Junior made a fortune because of who he was, however he isn't that man anymore. No one knows this more than Junior and his sister as they have all the spread sheet to show his income sources. I think his next big announcement is they are not going cup racing as a two or more car team and to do it with 1 car is foolish. Of course he can buy a ride for any driver he wants.
 

aunty dive

Team Owner
Contributor
Joined
Mar 17, 2014
Messages
32,862
Points
883
Some funny stuff here ...

 

antman12

Team Owner
Joined
Jul 18, 2020
Messages
1,212
Points
223
Location
Pocono Mtns
Some funny stuff here ...

Nothing funnier and STILL more true than Maple Leaf fans being a pitiful lot.
 

aunty dive

Team Owner
Contributor
Joined
Mar 17, 2014
Messages
32,862
Points
883
Nothing funnier and STILL more true than Maple Leaf fans being a pitiful lot.
The Brew Jays have muscled The Leaves out of the running for most pitiful team east of the Rockies but I’m sure they’ll come fighting back.

Leaves is the plural of Leaf ... it isn’t Leafs. One would think the residents of the city at The Center of the Universe would know that. 😇
 

West

Speedoholic
Joined
Jan 4, 2018
Messages
523
Points
253
Location
Great White North
One poster wrote re: Charters.
"These charters are like franchise rights to a sports team"
I assume that this is a good definition of the program. So in a nutshell, a "franchise" worth is based on revenues brought in. A revised TV deal or sponsor revenue will impact their worth. I think Jr. is wise to wait and see.
 

Spotter22

Team Owner
Joined
Aug 17, 2017
Messages
9,730
Points
883
JR Motorsports' move into the Cup Series remains stalled by "analysis paralysis," where it has been bogged down for the last two years.

In 2020, Dale Jr. said all they needed was a charter to pull the trigger for launching a Cup team when the Next Gen car was introduced, but charters were going for ~$5-6 million and he feared that high price might be a spike that wouldn't last. One year ago, when charters were ~$10-12 million, he was saying the same thing. Now with charters being quoted at ~$28-30 million, he's still singing the same song.

Seems to me that JRM would be well-positioned to attract sponsorship, as the magnetism of Dale himself as owner has a lot of pull. Also, a strong technical alliance with HMS seems doable. He'd need a solid driver, hopefully a top-15 regular. Mostly, he needs the courage to stop the analysis and pull the trigger.

I see you standing on the ledge, Dale. Jump, dude, JUMP! Now is the time.



You are spot on. I just watched the show and he is so confused on what to do. One minute he's out ,then Mike Davis makes a good point that the RTA may get what they want and the value will go higher and you can see him pause and change his mind and tell Mike he's right. I think he is gonna jump and I believe the RTA is gonna use him as bait to negotiate with NASCAR
 

aunty dive

Team Owner
Contributor
Joined
Mar 17, 2014
Messages
32,862
Points
883
In 1970, the Vancouver Canucks paid a $6 Million franchise fee for entry into the NHL. Current US dollar value is $45.8 Million.

In 2021, the Seattle Kraken’s entry fee was $650 Million. Wake up, Kelley.
 

LewTheShoe

Seeking Skill-based Meritocracy... More HP Less DF
Joined
Apr 21, 2016
Messages
4,574
Points
593
Some funny stuff here ...

The usual deathbedders bloviating about "The end is nigh." A common theme for R-F at that time.


One poster wrote re: Charters.
"These charters are like franchise rights to a sports team"
I assume that this is a good definition of the program. So in a nutshell, a "franchise" worth is based on revenues brought in. A revised TV deal or sponsor revenue will impact their worth. I think Jr. is wise to wait and see.
That's what Junior did in 2020... wait and see. He was uncomfortable investing $5 million for a charter that just a couple years earlier had traded for half that amount.

Then in 2021, the COVID-imposed delay in the Next Gen launch gave him another bite at the apple. By that time, charter trades were reportedly $10-12 million. Again he decided to wait and see.

Now, one year later, he still says he'd love to be in Cup. Adam Stern mentions charter quotes are ~$25 mil, and Junior himself mentions $28-30 mil. How much longer should he wait?

Dale Earnhardt Jr. owns a significant, diversified business portfolio. He has a lot of money. If Cup racing is something he wants to do, as he says, then he can afford the risk. Worst case is the charter declines to $3 million again, and he folds his Cup team and sells at that number. His loss would sting... but would not cramp his or his family's lifestyle in any way. He's fortunate to have an ample financial cushion.

Denny Hamlin has made a lot of money in Nascar, and he is investing in the sport... giving back to the sport... adding to his legacy. Justin Marks has money, less than Hamlin, a lot less than Dale Junior, but he loves Nascar racing and he's investing and giving back to the sport. Dale should do it, or stop talking about how he wants to do it but can't. (Just my opinion.)
 

West

Speedoholic
Joined
Jan 4, 2018
Messages
523
Points
253
Location
Great White North
The usual deathbedders bloviating about "The end is nigh." A common theme for R-F at that time.



That's what Junior did in 2020... wait and see. He was uncomfortable investing $5 million for a charter that just a couple years earlier had traded for half that amount.

Then in 2021, the COVID-imposed delay in the Next Gen launch gave him another bite at the apple. By that time, charter trades were reportedly $10-12 million. Again he decided to wait and see.

Now, one year later, he still says he'd love to be in Cup. Adam Stern mentions charter quotes are ~$25 mil, and Junior himself mentions $28-30 mil. How much longer should he wait?

Dale Earnhardt Jr. owns a significant, diversified business portfolio. He has a lot of money. If Cup racing is something he wants to do, as he says, then he can afford the risk. Worst case is the charter declines to $3 million again, and he folds his Cup team and sells at that number. His loss would sting... but would not cramp his or his family's lifestyle in any way. He's fortunate to have an ample financial cushion.

Denny Hamlin has made a lot of money in Nascar, and he is investing in the sport... giving back to the sport... adding to his legacy. Justin Marks has money, less than Hamlin, a lot less than Dale Junior, but he loves Nascar racing and he's investing and giving back to the sport. Dale should do it, or stop talking about how he wants to do it but can't. (Just my opinion.)
I understand what your saying, especially when it comes to an Earnhardt, who were made by Nascar. But at the same time, he didn't make his money being dumb either. There is a lot of rumbling as we are all aware off: lower fan base, poor attendance, anger at Nascar etc etc. All this can't be ignored, and will be a major Trump card for the TV executives when it's time to renogotiate a deal. I'm sure all the current Charter teams think their asset is worth 100x more than it is, it would be crazy not to think that.

Making a reference to the NHL is fine, especially with lots of money floating around today's business world, but then again the Arizona Cayotes went bankrupt as well.
Just because someone can afford it, it doesn't mean that it's worth it. Think Steve Ballmer buying the LA Clippers for what many thought was 2 times their actual worth. It's also possible that Bezos will buy the Seahawks, he can pay 100 Billion if he wants.
Anyway, I don't care what Jr. does, but he seems to be very cautious, which is probably a wise thing.
 

Charlie Spencer

Road courses and short tracks.
Joined
Oct 17, 2012
Messages
30,272
Points
1,033
Location
Lexington, SC
Jr. and Kelley aren't in business to make any of us happy. The world won't end if they stay at the Xfinity level.

Question: is the RTA restricted to Cup-running teams only, or do they allow X and Truck owners in?
 

acmerocket

Team Owner
Joined
Feb 9, 2017
Messages
1,868
Points
343
charter questions.
can a noncharter team run for the championship?
what is the different in prize money for a win?
cant a team with great sponsors like dale jr race and do ok without a charter?
i think his team should be able to make it in on time for all the races.
they say that nascar gives them a very small cut of the tv money, what am i missing?:dirtbike:
 

MRM

Team Owner
Joined
Jun 14, 2002
Messages
5,109
Points
793
Location
Powell, TN
Something is only worth what a person is willing to pay for it. Having said that, the prices of things rarely go down except for used cars and evolving technology. They have to weigh those options.
 

wi_racefan

Team Owner
Joined
Aug 4, 2017
Messages
4,090
Points
423
Kelly is a smart business person if nothing else and lets be honest she runs the money of the JR empire. If buying a charter is not economically viable she wont do it. At the end of the day this is a business and you can't loose money just because you want to play. At 25 mil I would think the payback on a charter has to be a ridiculous time period given the current system. I get it you can recover that money when you finally sell the charter, but you have to carry that debt until then....
 

Spotter22

Team Owner
Joined
Aug 17, 2017
Messages
9,730
Points
883
Kelly is a smart business person if nothing else and lets be honest she runs the money of the JR empire. If buying a charter is not economically viable she wont do it. At the end of the day this is a business and you can't loose money just because you want to play. At 25 mil I would think the payback on a charter has to be a ridiculous time period given the current system. I get it you can recover that money when you finally sell the charter, but you have to carry that debt until then....
Right , its an investment and you have to take a chance or not. Its possible he may be able to rent one.
 

Spotter22

Team Owner
Joined
Aug 17, 2017
Messages
9,730
Points
883
charter questions.
can a noncharter team run for the championship?
what is the different in prize money for a win?
cant a team with great sponsors like dale jr race and do ok without a charter?
i think his team should be able to make it in on time for all the races.

they say that nascar gives them a very small cut of the tv money, what am i missing?:dirtbike:
-Absolutely
-Not sure but its more for a chartered team
-Yes if this is a short term venture
- What if you dont?
 

Charlie Spencer

Road courses and short tracks.
Joined
Oct 17, 2012
Messages
30,272
Points
1,033
Location
Lexington, SC
charter questions.
can a noncharter team run for the championship?
what is the different in prize money for a win?
cant a team with great sponsors like dale jr race and do ok without a charter?
i think his team should be able to make it in on time for all the races.

they say that nascar gives them a very small cut of the tv money, what am i missing?:dirtbike:
- I think the prize money is the same for all finishing positions, regardless. I think the charter holders get an additional bonus that's paid separately from the race purse. I could well be wrong about that. Either way, my understanding is the overall difference is substantial.
- Define 'Do ok'.
- I was initially going to agree with @Spotter22 on this one. On the other hand, there weren't that many full 40-car fields over the last couple of seasons. It doesn't matter if it rains if there are only 38 cars entered. It depends on the owner's acceptance of risk. Kelley appears to be fairly cautious, but so far the company has been successful.
 

aunty dive

Team Owner
Contributor
Joined
Mar 17, 2014
Messages
32,862
Points
883
At some point, Jeff Dickerson and Rick Ware will come out of all this looking like a pair of geniuses.
 

sdj

Just a race fan
Joined
Jun 2, 2014
Messages
6,491
Points
793
Location
In the woods (as much as possible) RM LogoType (4)
My thoughts are, if Jr and Kelly do a thing it has to be first class and come out the box with winning equipment and teams and be financially sound. JMHO.

Out of the 36 or 38 charters, who is wanting to sell one or two?

Brings up a question, does having one charter allow you to have 4 cars under that charter? or Do you have to have 4 charters?
 

Charlie Spencer

Road courses and short tracks.
Joined
Oct 17, 2012
Messages
30,272
Points
1,033
Location
Lexington, SC
Would you guys be this hard on JD Mcduffie? These car owners are spending tons of money to go race every week. Jus sayin
They're spending tons of money to get the same results as they would on a JD McDuffie budget. Why is that not a fair target for ridicule?

Jus' askin'.
 

Spotter22

Team Owner
Joined
Aug 17, 2017
Messages
9,730
Points
883
They're spending tons of money to get the same results as they would on a JD McDuffie budget. Why is that not a fair target for ridicule?

Jus' askin'.
Dollars today vs dollars yesterday , its the same thing. These guys want to race and I for one I'm glad we have them.
 

2 Sweet

HMS 4-life
Joined
Apr 21, 2016
Messages
5,633
Points
793
Location
Hilliard, OH
Dollars today vs dollars yesterday , its the same thing. These guys want to race and I for one I'm glad we have them.

JD McDuffie raced his own car, and he did it for the love of racing, not to get rich. HUGE difference. How many Cup races has Jeff Dickerson entered?

Maybe JD Stacy would have been a better comparison. But at least his cars were competitive
 

Spotter22

Team Owner
Joined
Aug 17, 2017
Messages
9,730
Points
883
JD McDuffie raced his own car, and he did it for the love of racing, not to get rich. HUGE difference. How many Cup races has Jeff Dickerson entered?

Maybe JD Stacy would have been a better comparison. But at least his cars were competitive
Ware is racing his own cars.You think Ware is getting rich? He's not
 

2 Sweet

HMS 4-life
Joined
Apr 21, 2016
Messages
5,633
Points
793
Location
Hilliard, OH
Ware is racing his own cars.You think Ware is getting rich? He's not

Rick isn't driving his cars. And he is absolutely going to get rich when he sells a charter or two.

I'm not trying to badmouth RWR or the other backmarker teams, I'm just saying it's not fair to McDuffie to compare their situations
 

Spotter22

Team Owner
Joined
Aug 17, 2017
Messages
9,730
Points
883
Rick isn't driving his cars. And he is absolutely going to get rich when he sells a charter or two.

I'm not trying to badmouth RWR or the other backmarker teams, I'm just saying it's not fair to McDuffie to compare their situations
RWR provides cars , driver is irrelevant. You cant get "rich" on value, its paper. What happens if a charter goes to 1 million? My comparison is a person who loves racing and puts his money where his mouth is. He loves racing and at best breaks even on his endeavor. He has sponsors that help with the bills some weeks, some weeks he pays for it himself. If, and its a BIG if, he decided to get out and sell JRM a charter for 30 Million you may be right, but I need to know how much debt and what he would clear after settling that debt.
 
Top Bottom