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As the Driveshaft Turns
Posted on June 8, 2004
By The Commish
If you like soap opera, you don't need to look as far as Port Charles or Pine Valley this week to see NASCAR's latest dramatics. The location for those is on Coddle Creek Highway in Mooresville, home of DEI Racing. And the story that began to leak last week about DEI's future drivers opens a window of insight into one of NASCAR's most confusing operations.
Most of you have heard part of the story: Dale Earnhardt Jr., acting as "President" of Daytona Speedway last Wednesday as a publicity stunt to sell tickets for the Pepsi 400, stated that he didn't expect teammate Michael Waltrip to end his career with DEI. Mikey fans all over racing reacted with fear, alarm, and disbelief: his popularity is unquestioned, even if his driving talent sometimes is. Dale Jr. went on to add that the team needed to bring in a "home run hitter" for a long-term relationship at DEI, showing an awareness of the business, as opposed to personal side of racing.
But the part of the story the media has skimped was Dale Jr.'s follow-up statement that one driver should not be considered for the #15 ride was his protégé, Martin Truex Jr. Driving for Dale Jr. and Teresa Earnhardt's eight-million dollar Chance 2 Busch team, Truex Jr. has quickly emerged as an up-and-coming star in stock car racing. Dale Jr. rightly points out, however, that Truex Jr. is not ready for the pressures of Cup racing--especially in a visible ride like DEI. Dale Jr. went on to add that "It's kind of tough for Martin because he feels he's causing problems that he's not even causing."
Wait a minute! What problems? Nobody's heard rumors that Truex Jr. is causing problems or is pushing for an early move up to Cup. So the problems have to be coming from elsewhere--and many insiders point to DEI management itself. Teresa Earnhardt, admittedly an expert on marketing and promotion, retains a strangehold on management decisions at her late husband's company. As far as anyone in racing knows, Dale Jr. doesn't make the decisions for DEI. While Teresa has to keep him happy--she knows better than to kill the goose that is laying the golden eggs--even Dale Jr. clarified for the media on Friday that his statements didn't necessarily reflect what the company was thinking or doing. In other words, Dale Jr. was thinking out loud, trying to shape public opinion as a way of shaping DEI decisions--that is, Teresa's decisions.
Dale Jr.'s done this before, particularly during his contract negotiations last year when he speculated what it would be like to drive for a team other than DEI. Nobody expected him to leave, but the threat gave him leverage to get what he really wanted in his contract--marketing rights to the Dale Earnhardt Jr. name, which represent a major revenue stream at DEI. With the guidance of sister Kelley, Dale Jr. played hardball with his stepmother to wrest that much control away. It seems likely that his maneuvers with the future of the #15 team are a similar ploy, a warning shot across the bow of that ornate desk on the second floor of the Garage Mahal: don't mess with Truex Jr.; he's my boy.
And the second story about DEI that emerged this weekend makes it clear why Dale Jr. made the pre-emptive PR strike: DEI is reportedly about to sign a sponsorship deal with Menard's, a long-time sponsor in open-wheel racing run by the stubborn and determined John Menard. If he is going to sponsor a Cup team, it's not going to be a third-wheel like the #1 team with a journeyman like John Andretti in the seat. No, Menard will want a Young Gun, an up-and-coming superstar, and he won't take 'no' for an answer (ask Tony Stewart if you don't believe me). The possibility of putting Truex Jr. in a Menard's DEI Cup car is a significant marketing plum--and in today's sponsorship market, no team owner can afford to let a well-heeled sponsor off the hook. It seems unlikely, too, that DEI will run a third full-time Cup team; Teresa's legendary tight-fistedness is at the root of that issue, even though Dale Jr. has repeatedly pointed to the advantages of running a third fulltime Cup team for testing and R&D.
DEI lost Sam Hornish Jr. to Penske last year, apparently because of Teresa's objections to his price; and frankly, there aren't that many "home-run hitters" out there looking for Cup rides. There are good utility players, like Jeff Burton and Greg Biffle, and long-time journeymen like Andretti and Johnny Benson. Most of the up-and-coming Busch stars are under contract--Kyle Busch to Hendrick, Kasey Kahne to Evernham, David Stremme to Ganassi. A Busch driver like Bobby Hamilton Jr. might fit the DEI mold, but lacks the mediagenic qualities of a Young Gun. Paul Menard is driving a Busch car, but with indifferent results at best. Most of the good young open-wheel drivers are tied up in development deals; Joe Gibbs Racing and Hendrick have been signing them by the handful. The pressure will be strong on (and from) Teresa Earnhardt to push Truex Jr. into a Cup seat--if not in Menard's car, then in the #15 car as the cost of NAPA's renewal.
As enjoyable as Mikey is as a spokesman, no major company is going to give him a four- or five-year deal at this stage of his career with his uneven performance over the past three years. NAPA appears to be financially strong enough to renew its sponsorship, but perhaps not at the price DEI is asking (reportedly $20 million a year). He could easily find another Cup ride with a lesser team, where his sponsor relations skills might carry him further. And he's not really a victim here; you may not have noticed, but DEI has signed a deal to provide Mikey with cars and engines to run Kenny Wallace in additional Cup races for Michael Waltrip racing. In other words, they're still giving him the business perks he needs to keep his own race team going. In addition, DEI has made a major financial commitment to letting Slugger Labbe cut bodies off cars and do extensive aerodynamic research to improve DEI performance; the results have shown in Waltrip's improved performance in the last month and will probably continue to be reflected throughout the summer. In other words, Mikey knows where he fits in DEI's plans this year and is profiting from the relationship. That's why he's had no public comment about Dale Jr.'s remarks. This is all orchestrated.
Dale Jr.'s public spanking of the 15 car's early-season efforts seems like a planned attempt to get good enough results to get a one-year extension from NAPA and buy Truex Jr. some more Busch seat time. It appears that Teresa and DEI, fighting for sponsorship dollars, want to make the decision based on marketing and not driving criteria. Without real budget and line power at DEI, Dale Jr.'s only chance to influence the decision is to manipulate the media by creating a "keep Mikey in the NAPA car" backlash that Teresa can't overpower. In the end, like in so many soap operas, the Mikey story is only a sub-plot to the power struggle between DEI's past and its present and future. How will this story play out? Tune in for more episodes of "As the Driveshaft Turns" to find out.
Posted on June 8, 2004
By The Commish
If you like soap opera, you don't need to look as far as Port Charles or Pine Valley this week to see NASCAR's latest dramatics. The location for those is on Coddle Creek Highway in Mooresville, home of DEI Racing. And the story that began to leak last week about DEI's future drivers opens a window of insight into one of NASCAR's most confusing operations.
Most of you have heard part of the story: Dale Earnhardt Jr., acting as "President" of Daytona Speedway last Wednesday as a publicity stunt to sell tickets for the Pepsi 400, stated that he didn't expect teammate Michael Waltrip to end his career with DEI. Mikey fans all over racing reacted with fear, alarm, and disbelief: his popularity is unquestioned, even if his driving talent sometimes is. Dale Jr. went on to add that the team needed to bring in a "home run hitter" for a long-term relationship at DEI, showing an awareness of the business, as opposed to personal side of racing.
But the part of the story the media has skimped was Dale Jr.'s follow-up statement that one driver should not be considered for the #15 ride was his protégé, Martin Truex Jr. Driving for Dale Jr. and Teresa Earnhardt's eight-million dollar Chance 2 Busch team, Truex Jr. has quickly emerged as an up-and-coming star in stock car racing. Dale Jr. rightly points out, however, that Truex Jr. is not ready for the pressures of Cup racing--especially in a visible ride like DEI. Dale Jr. went on to add that "It's kind of tough for Martin because he feels he's causing problems that he's not even causing."
Wait a minute! What problems? Nobody's heard rumors that Truex Jr. is causing problems or is pushing for an early move up to Cup. So the problems have to be coming from elsewhere--and many insiders point to DEI management itself. Teresa Earnhardt, admittedly an expert on marketing and promotion, retains a strangehold on management decisions at her late husband's company. As far as anyone in racing knows, Dale Jr. doesn't make the decisions for DEI. While Teresa has to keep him happy--she knows better than to kill the goose that is laying the golden eggs--even Dale Jr. clarified for the media on Friday that his statements didn't necessarily reflect what the company was thinking or doing. In other words, Dale Jr. was thinking out loud, trying to shape public opinion as a way of shaping DEI decisions--that is, Teresa's decisions.
Dale Jr.'s done this before, particularly during his contract negotiations last year when he speculated what it would be like to drive for a team other than DEI. Nobody expected him to leave, but the threat gave him leverage to get what he really wanted in his contract--marketing rights to the Dale Earnhardt Jr. name, which represent a major revenue stream at DEI. With the guidance of sister Kelley, Dale Jr. played hardball with his stepmother to wrest that much control away. It seems likely that his maneuvers with the future of the #15 team are a similar ploy, a warning shot across the bow of that ornate desk on the second floor of the Garage Mahal: don't mess with Truex Jr.; he's my boy.
And the second story about DEI that emerged this weekend makes it clear why Dale Jr. made the pre-emptive PR strike: DEI is reportedly about to sign a sponsorship deal with Menard's, a long-time sponsor in open-wheel racing run by the stubborn and determined John Menard. If he is going to sponsor a Cup team, it's not going to be a third-wheel like the #1 team with a journeyman like John Andretti in the seat. No, Menard will want a Young Gun, an up-and-coming superstar, and he won't take 'no' for an answer (ask Tony Stewart if you don't believe me). The possibility of putting Truex Jr. in a Menard's DEI Cup car is a significant marketing plum--and in today's sponsorship market, no team owner can afford to let a well-heeled sponsor off the hook. It seems unlikely, too, that DEI will run a third full-time Cup team; Teresa's legendary tight-fistedness is at the root of that issue, even though Dale Jr. has repeatedly pointed to the advantages of running a third fulltime Cup team for testing and R&D.
DEI lost Sam Hornish Jr. to Penske last year, apparently because of Teresa's objections to his price; and frankly, there aren't that many "home-run hitters" out there looking for Cup rides. There are good utility players, like Jeff Burton and Greg Biffle, and long-time journeymen like Andretti and Johnny Benson. Most of the up-and-coming Busch stars are under contract--Kyle Busch to Hendrick, Kasey Kahne to Evernham, David Stremme to Ganassi. A Busch driver like Bobby Hamilton Jr. might fit the DEI mold, but lacks the mediagenic qualities of a Young Gun. Paul Menard is driving a Busch car, but with indifferent results at best. Most of the good young open-wheel drivers are tied up in development deals; Joe Gibbs Racing and Hendrick have been signing them by the handful. The pressure will be strong on (and from) Teresa Earnhardt to push Truex Jr. into a Cup seat--if not in Menard's car, then in the #15 car as the cost of NAPA's renewal.
As enjoyable as Mikey is as a spokesman, no major company is going to give him a four- or five-year deal at this stage of his career with his uneven performance over the past three years. NAPA appears to be financially strong enough to renew its sponsorship, but perhaps not at the price DEI is asking (reportedly $20 million a year). He could easily find another Cup ride with a lesser team, where his sponsor relations skills might carry him further. And he's not really a victim here; you may not have noticed, but DEI has signed a deal to provide Mikey with cars and engines to run Kenny Wallace in additional Cup races for Michael Waltrip racing. In other words, they're still giving him the business perks he needs to keep his own race team going. In addition, DEI has made a major financial commitment to letting Slugger Labbe cut bodies off cars and do extensive aerodynamic research to improve DEI performance; the results have shown in Waltrip's improved performance in the last month and will probably continue to be reflected throughout the summer. In other words, Mikey knows where he fits in DEI's plans this year and is profiting from the relationship. That's why he's had no public comment about Dale Jr.'s remarks. This is all orchestrated.
Dale Jr.'s public spanking of the 15 car's early-season efforts seems like a planned attempt to get good enough results to get a one-year extension from NAPA and buy Truex Jr. some more Busch seat time. It appears that Teresa and DEI, fighting for sponsorship dollars, want to make the decision based on marketing and not driving criteria. Without real budget and line power at DEI, Dale Jr.'s only chance to influence the decision is to manipulate the media by creating a "keep Mikey in the NAPA car" backlash that Teresa can't overpower. In the end, like in so many soap operas, the Mikey story is only a sub-plot to the power struggle between DEI's past and its present and future. How will this story play out? Tune in for more episodes of "As the Driveshaft Turns" to find out.
