Earnhardt Jr. wants majority ownership of DEI

Earnhardt Jr. wants majority ownership of DEI

Earnhardt Jr. wants majority ownership of DEI

SCENEDAILY
THURSDAY FEBRUARY 8, 2007 -
BY BOB POCKRASS - ASSOCIATE EDITOR

DAYTONA BEACH, Fla. - Dale Earnhardt Jr. says that ownership in Dale Earnhardt Inc. is still the prevailing issue in his contract negotiations with the company his father founded.

Speaking at NASCAR Media Day on Thursday, Earnhardt Jr. said that he wanted majority ownership in the team owned and operated by his stepmother, Teresa. Asked if he wanted more than 50 percent ownership, Earnhardt Jr. said, "Absolutely."

The son of seven-time Cup champion Dale Earnhardt is in contract negotiations with DEI since his current contract ends this year.

"The main factor is the ownership part," Earnhardt Jr. said. "It has nothing to do with money and nothing else, really. I really like my team. ... Everything is on the upswing. But my father has been gone for five, six years now, and I want majority ownership."

Earnhardt Jr. met new DEI President Max Siegel for lunch Wednesday, but he said that was more of a get-acquainted session.

"That was the first time me and him sat around and talked," Earnhardt Jr. said. "Yesterday was just lunch. He told me where he came from, what his upbringing was like, basically his whole history and what he was about and why he took the job."

The driver said he gave Siegel, a former gospel music executive, suggestions of where he thought the company should be, and they talked about ideas.

"We didn't really talk about the contract," Earnhardt Jr. said. "This guy is pretty impressive when you sit down with him and talk to him a little bit. He brings a lot of integrity and credibility wherever he is at.

"I'm excited he's at DEI. I don't think [the personalities] will affect my decision. He is a great guy to talk to and a great guy to work with. He is going to speed things up. He's going to improve the negotiations."

Earnhardt Jr. said he didn't regret some of the things he said last month about Teresa and their relationship, which he said "ain't a bed of roses." He reiterated that he wasn't happy with her comments that he needed to decide between being a public personality and a race car driver.

But Earnhardt Jr. also took exception with the notion that DEI needs him more than he needs DEI.

"I don't believe that is true - DEI provides me with a lot to be successful," he said. "They're a huge credit to everything I've ever done. ... [thanks to] the people I have had to work with, the caliber of teams I have had in the past."

That opinion isn't shared by everyone.

"He's really probably the only one that's got the bargaining power," said driver Kevin Harvick. "He's got it all on his side, and I think it's deservedly right that he does have it on his side. He's the most popular driver.

"He's been successful, and he deserves the respect of being a grown man and not being treated like he's 15 and somebody's stepson."

www.scenedaily.com

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Re: Earnhardt Jr. wants majority ownership of DEI

I have a feeling this will get ugly  ;D

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If he is stuck on 50% I say he walks. Teresa will never give that period. I see a black 3 in the mirror

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Re: Earnhardt Jr. wants majority ownership of DEI

If Earnhardt Jr.'s bluffing, he's good at it
By Terry Blount
ESPN.com


DAYTONA BEACH, Fla. -- Dale Earnhardt Jr. needs to hire the best law firm he can find. And a powerful sports agent accustomed to negotiating franchise-altering deals.

Staying Focused?

Richie Gilmore, DEI's director of motorsports, remains optimistic Dale Earnhardt Jr. will stay with the team. He maintains he's really focused on winning another Daytona 500, writes David Newton. Story 

This isn't just a contract negotiation now. We're talking about a hostile takeover of a growing company.

When Earnhardt Jr. said Thursday he wants majority ownership in Dale Earnhardt Inc., he turned a wheel into the big leagues.

No, not NASCAR's big leagues. This is the big leagues of the business world, where people do what they must to get what they want.

We're way beyond a family feud. Earnhardt Jr. essentially is telling stepmom Teresa Earnhardt that he should own DEI; that he is DEI and he can run it better than she can.

Well, somebody isn't just a race car driver any longer. Everyone looks at Earnhardt Jr. in a different light today. He's no longer the aw-shucks Nextel Cup star hoping to get a little piece of the family business in his new contract.

We met the new Dale Jr. Thursday, the serious, look-you-in-the-eye man who believes it's time to take control of his father's legacy.

Earnhardt Jr. was asked on ESPN2's "NASCAR Now" if he wanted 51 percent of DEI.

"Actually 100 percent would be nice," he said, and he wasn't laughing.

Forbes magazine last year listed the net worth of DEI at $57 million. Some NASCAR executives believe that figure is too low; thinking $75 million to $100 million is more accurate.

Whatever it is, Earnhardt Jr. wants it. Some Cup drivers think he can get it. Jeff Gordon, Jeff Burton and Kevin Harvick all said Thursday that Junior is in an advantageous position.

"Junior has the leverage he wants," Burton said.

Before dropping the bombshell about wanting majority ownership, Earnhardt said repeatedly Thursday he finally understands his worth. He said his sister, Kelley, tells him, but he didn't realize it in the past. Now he does.

Kelley is Junior's negotiating partner. She's a bright young woman, but if Junior really wants to win this showdown, it's time to call in some heavy hitters.

A ruthless reputation wouldn't hurt. Baseball mega-agent Scott Boras, perhaps?

Earnhardt Jr. said he has a vision of where he wants DEI to go. He discussed it Wednesday with Max Siegel, DEI's new president of global operations.

Earnhardt Jr. likes Siegel, saying he's a "man of integrity." Junior didn't elaborate on their conversation, but it's clear he wanted to check out Siegel and show Siegel he means business.

Earnhardt's probable message? "Here's what we're doing wrong. Here's what we can do better. Here's where I can take us if I'm in charge."

Siegel is a brilliant guy, a cum laude graduate of Notre Dame Law School. But he must be wondering, "What have I gotten myself into here?" He's the middleman in an ugly financial fight between two parties who aren't speaking.

Teresa isn't about to hand over the keys to the DEI kingdom. But will the kingdom crumble without Earnhardt Jr.? What is DEI without Junior?

Not much, and Junior knows it. Budweiser will go wherever Earnhardt Jr. goes, just as UPS left Robert Yates Racing to stick with Dale Jarrett this season on Michael Waltrip's Toyota team.

Teresa has two choices. She can accept her stepson's proposal, sell him 51 percent of DEI and become a minority owner. Most people see her as an absentee owner now (Harvick called her a "deadbeat owner") and she can keep skipping races and live her life as she pleases.

Not likely.

Or she can refuse to give Earnhardt Jr. controlling interest, calling his bluff (in her eyes) and believing he won't really leave. Even if he does, she would accept it and be willing to rebuild DEI without him.

Earnhardt Jr. was well-coached before talking to reporters on media day Thursday. In a subtle way, he stated his case, listed his reasons and discussed his options before getting to the main point of ownership.

Maybe it's all just a negotiating ploy. Say you want 51 percent so you can get 30 percent. If so, Junior should try celebrity poker in Las Vegas because he is one heck of a bluffer.

Earnhardt Jr. made sure to say he's close to team owner Richard Childress and speaks to him regularly. More leverage, of course.

If Earnhardt Jr. really wants to leave, a Childress Chevy is waiting. Toyota also gladly would find a place for him. Junior could say he negotiated in good faith and DEI couldn't give him what he wanted, so he's moving on.

But that's not what he wants. He wants his father's company because he believes he can make it better.

He might not say it directly, but his feelings are obvious. Six years after Dale Sr.'s death, Earnhardt Jr. doesn't think DEI is where it should be.

He has a major problem with Teresa's leadership. He's still upset over her Wall Street Journal statement, calling it a "low blow." Teresa said in December that Earnhardt Jr. needs to decide if he wants to be a race car driver or a public personality.

At the time, it seemed like a curt remark, but it makes more sense now if Junior already had asked for majority ownership.

You can imagine Teresa scoffing and thinking, he doesn't know who he wants to be, much less run this company.

This is a serious confrontation with major financial ramifications. It isn't going away and it could have a negative effect on Earnhardt's 2007 season.

He's going to hear contract questions every time he speaks publicly. This situation rarely works out well for any team. It's hard to stay focused on racing when you're unsure about the future.

But Earnhardt Jr. knows what he's doing. Any hint of naiveté is long gone. This is the shrewd Junior, the one playing for keeps.

Now he really is his father's son.

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Re: Earnhardt Jr. wants majority ownership of DEI

DEI Prez happy with Dale Jr. contract negotiations

Dale Earnhardt Inc. President of Global Operations Max Siegel said Saturday he is pleased with the way negotiations are going with driver #8-Dale Earnhardt Jr. but would not talk about specifics. "The lines of communication are open," Siegel said Saturday night prior to the Budweiser Shootout at Daytona International Speedway. "It's not prudent to talk about the substance of the negotiations. Everything is moving in a positive direction." Earnhardt Jr., son of the late Dale Earnhardt and stepson of owner Teresa Earnhardt, is under contract through the 2007 season. "It's a top priority for us," said Siegel, who started Feb. 1. "Things have a natural rhythm to it. So as long as we continue to talk about [it] and as long as we continue to focus on it, I think it will resolve itself when it is supposed to." On Thursday, Earnhardt Jr. said he wanted to own a majority of the team. "I try not to read the press, so I can focus on making sure that we can reach an agreement that is mutually beneficial and keeping him part of the family forever," Siegel said. Siegel, a former gospel music executive, met Wednesday with Earnhardt Jr. and his sister, Kelley Earnhardt Elledge, who handles Earnhardt Jr.'s business affairs. "I have a tremendous amount of respect for Dale Jr.," Siegel said. "I have a tremendous amount of respect for Kelley and Teresa Earnhardt. I just want to focus on the issues we need to focus on to have a long-term relationship.

www.SceneDaily.com

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