Subscribe to this blog's feed« Past Champion Provisional limit | Main | Stewart wins Shootout »
February 08, 2007
Jr. wants majority ownership
I'm sure you've seen it by now, all the reports about Dale Earnhardt Jr. wanting majority ownership in DEI. I wonder how Teresa will react to that?
The way Jr. see's it is that his Dad has been gone for 6 years now and he thinks it's time for him to have an ownership role in the company that was formed for him and his sister and brother. You can't really blame him, I mean it was formed for them and he just wants to be able to help shape it more after he retires from driving, but wants to have ownership before that.
What do you think? Will Teresa give Jr. what he wants or will she want to hold onto it for herself a while longer?
February 8, 2007 in NASCAR | Permalink
TrackBack
TrackBack URL for this entry:
http://www.typepad.com/services/trackback/6a00d83451bce769e200d834e25a1653ef
Listed below are links to weblogs that reference Jr. wants majority ownership:
Comments
i say Jr gets 25% and Kerry and Kelly each get 13% that 51% and its divided among all the children with Teresa holding 49% for herself and Taylor
Posted by: Tim | Mar 6, 2007 11:53:55 AM
it would be cool to see an earnhardt in the #3
Posted by: coco | Feb 13, 2007 4:03:15 PM
I think the fact that Junior made the request of majority control in DEI is really the only surprising part of the whole situation, because to say Dale Jr., Kelly and Kerry don't deserve a fair portion of DEI would be ridiculous.
Posted by: Jon | Feb 11, 2007 1:46:09 PM
Dale was taken so suddenly I seriously doubt there was anything that indicated how the company should be divided in case of his demise. The proper thing would have been for DEI ownership to be split 5 ways, with Teresa overseeing her portion and the portion of the minor children. It has been 6 years now, Jr, Kerry, and Kelly are way overdue for their piece of the pie. Teresa is setting herself up for losing DEI no matter what she does, without Jr the team would be hard pressed to continue beyond current sponsor contracts... Wake up Teresa, and smell the coffee.
Posted by: dean smith | Feb 11, 2007 11:47:00 AM
Bill,
Only Teresa, her attorney and the family know exactly what is in the will, but the fact is DEI was started for Dale Sr. kids and it only makes sense that Junior would decide to seek majority control from Teresa.
Posted by: Jon | Feb 11, 2007 8:46:36 AM
Jon,
If the will did have a provision for this then there would be nothing Teresa could do about it and it would not be a contract bargaining chip as it is now. Also, if it were in the will, Jr would know about it as he would have been there when it was read, it was his right.
Posted by: Bill | Feb 11, 2007 8:05:02 AM
I think I have to agree with Bill on this one. Looks like a way out of DEI. Maybe that will take the pressure off him driving for a company with his name attached. I just don't see her giving him control of that company. And I'm not sure he is ready for that. I see a fourth RCR car in 2008.
Posted by: jeff | Feb 11, 2007 12:03:55 AM
Bill,
Do we know that his will didn't include a provision for Dale Jr. to take over majority control, after all Teresa hasn't commented publically since Junior made the request.
Posted by: Jon | Feb 10, 2007 11:11:11 PM
Does it not stand to reason that if Dale Sr had intended for Jr to be in control of DEI at some point it would have been covered in his will?
Posted by: Bill | Feb 10, 2007 9:44:39 PM
I agree with Bill on his comment, "damned if you, damned if you don't". If dale jr. leaves dei, it will only be a matter of time before dei goes "tits up". jr is the money maker of that company, and he should be because it's EARNHARDT company! like i and bill has said, this(I BELEIVE) will only happen if he leaves, and the only way he will stay is if he and his sibling are running show. regardless of what we WANT to happen, this is what WILL happen. Money is NO issue for dale jr. his lastname is a legend and money making. in my opinion.i want to see him and his sibling running the show.
Posted by: Nate | Feb 10, 2007 3:59:06 PM
"Jon is right-on!" Dale, Jr. should make the big move to RCR and be seated in the Goodwrench #3, to follow his father's footsteps And, again, there would be the man in black, they may even begin calling him "The Intimidator Junior, Most Popular Driver. Sounds like a wiener to me!
Posted by: Craig Spangler | Feb 10, 2007 3:41:23 PM
Jon,
Are you really stupid, or do you just talk out of your ass? Why don't you just go back to the fry cooker and leave the business talk for the grown-ups. How would Junior do any better than Teresa if he ran the company? Bill Elliot, Darrell Waltrip, Ricky Rudd, and Robby Gordon all did this and still tried to drive. They have all failed, he'd be better off driving the car and letting Teresa write the checks. He already owns a Busch car, and how did that go last year? Also, where is Jr. going to get the money to spend like Hendrick or Roush?
Posted by: joe | Feb 10, 2007 1:26:43 PM
I have no idea what the terms of Dale's will were, and I doubt any of you do either.Has Jr earned 51% of DEI? no, should he have it, I don't know, but the fact seems to be, That Jr could go anywhere he wants, and Bud will trot along, as to what number will be on the door, either could probably care less.
Like Jr or not, he is the face of NASCAR right now, so Teresa is probably screwed what ever she does. But since she seems to have more importain things to do that be a typical owner, she should probably give, or sell 51% to Jr and sit back and collect the money, because if Jr leaves, I doubt she will be willing to spend the money necessary to compete with the Hendricks, Roush's and other teams.
So in my opinion, Jr leaves, DEI will go the way of the Petty's
Posted by: DonB | Feb 10, 2007 12:30:38 PM
The more I think about it, this is nothing more than Jr's way of leaving DEI next year WITHOUT it appearing to be his fault. The boy so rarely will even come close to admitting when he is at fault so what better way to leave without it seemingly being his fault? He knows that Teresa will never give him controlling interest in DEI so he can leave next year so far as the general public knows it won't be his fault. I have to give him a little credit, he's smarter that I thought.
Posted by: Bill | Feb 10, 2007 7:44:58 AM
If she doesn't give it to him, it will be the worst mistake she ever made. Without Jr., she has nothing. Any income is better than no income.
Posted by: Raymond | Feb 9, 2007 9:50:51 PM
Jon, I'm not at CPA but even if Jr. was given a percentage of the company he'd still have to pay taxes on it and 50% of that business is a hell of alot of money. Government would view it as income. So STFU dumbass. Maybe you should get a CPA, by the way, do you even know what CPA stands for? Moron.
Posted by: canucken | Feb 9, 2007 8:43:17 PM
I just think it's unfair for Jr to push Teresa aside after everything she's done to build up DEI. I can see having shares in the company but more than 50% is not right.I say buy Teresa out and run the company into the ground or shut up and drive. Why does everyone think he'll suddenly do any better driving for RCR?
Posted by: marsha | Feb 9, 2007 7:43:09 PM
Canucken, Jr. doesn't have to buy into DEI and since I don't have a CPA I won't be talking to them. I'm sure Junior and Kelly have already worked out all of those details before they went to Gilmore with his request. I am guessing that you aren't a CPA or you be bragging on yourself for claiming that you know what you are talking about. You are sounding more like the know it all Mike Daily ( self proclaimed know it all that is).
Posted by: Jon | Feb 9, 2007 7:31:20 PM
Jon, sorry to inform you but, as you put it so eloquently, it's not a "bunch bull". Go talk to your CPA and then come back and let me know what he said.
Posted by: canucken | Feb 9, 2007 10:26:56 AM
Joe - I was just talking about taking over the operations of the company when he retires - that we wouldn't have to pay him to do that...
Russ - What about Budweiser, Jr is a cash cow to them, they aren't going to leave him anytime soon...
Posted by: truracinfan | Feb 9, 2007 10:03:57 AM
Jon and Truracinfan,
Taht is not a bunch of bull! You can only gift a small percentage of your business to your child once in your lifetime. If I were to inherit my dad's farm I would have to pay 55% of it's value in taxes. Land being at $5,000 per acre, figure out the cost. Now, take a $100 million dollar company and figure out the cost. Unless your dad has a big pile of cash to leave you on top of the family business to pay all the taxes and lawyer fees, Truracinfan you are in for a big wake-up call. Besides, ask junior what 100% divided by 4 is. One last thing,csf64ss is a complete moron.
Posted by: joe | Feb 9, 2007 9:40:47 AM
Canucken -
No, that's not always the case. My father owns his own business and he has made it clear, he built the business to HAND DOWN to his kids when he retires. There is no "buying" into the business.
Posted by: truracinfan | Feb 9, 2007 9:14:54 AM
Teresa won't "hand over" 51% on a silver platter. Did you notice Harvick didn't have GM Goodwreench on his car today. How about this scenario? Teresa says NO. Jr. goes to Childress Racing. Next year you see Jr. in the RCR GM Goodwrench No. 3
Posted by: Russ | Feb 9, 2007 1:32:10 AM
Canucken, that is a bunch bull.
Posted by: Jon | Feb 9, 2007 12:25:06 AM
OK folks - no one at DEI, even Teresa denies that Dale, Sr. built the company to one day hand over to his children - once they are READY and ABLE to do so in a prudent fashion. You also have to remember there are 4 children - not just one. If Dale Jr. wants 51%, what does that leave for Teresa and the others to share? True, he brings in the lion's share of the revenue, but still is not the only child. Also, no one seems to even consider the fact that Dale, Sr. surely had a will and the provisions for ownership may already be spelled out with a time table for implementation. There may even be a formula to give each a certain % stake at a certain age, ramping up over a set number of years until they do own it all. Why does everyone have to speculate on what they don't have the slightest clue about?? Dale Sr. and Teresa were smart business partners and owners when they built DEI. He was in a dangerous business. Doesn't anyone believe with all the lawyers surrounding them that there would not have been a plan in place for such a scenario?? Say whay you will about Teresa, but remember she is doing a job she never sought or asked for. She had to be the one to step up on the same day she lost her best friend and husband and look out for the 200+ employees and families of DEI. The company continues to grow and expand. I don't think there are many women out there that could handle being a single mother and run a multi-million dollar company while trying to preserve the legacy of an American hero and icon at the same time and do it perfectly. Cut her some slack people! She hasn't even had the time to really grieve the loss of Dale. There are a lot of changes going on in her life right now - her daughter is about to graduate from HS and start a new phase in her life and she and Dale would have celebrated their 25th wedding anniversary this year - do you think for a second these things aren't on her mind too??? The whole contract thing would quiet down and get done if the over zealous "gotta have a story to sell papers" media and fan blogs would just give it a rest. Every new story and blog entry does nothing except stir up the pot more.
Posted by: nclandrover | Feb 8, 2007 10:00:40 PM
Well, this should prove interesting.
This is a "damned if she does and damned if she don't" choice for Teresa. Either way, she's screwed.
Posted by: Bill | Feb 8, 2007 9:58:13 PM
Jon, most family businesses are purchased by the sons and daughters from the parents. Rarely do they just get them handed to them. Besides Jr. couldn't afford the taxes if it was handed to him and his siblings. He should be offered a chance to buy into it over a period of time resulting in a majority ownership position for him. To demand that he be given a majority of it is a little arrogant.
Posted by: Canucken | Feb 8, 2007 9:06:13 PM
I agree with Jon, why should Junior have to "Buy" what his Daddy built for him and his siblings. That's crap !!!
Posted by: WaltripManiac | Feb 8, 2007 8:49:03 PM
Sally,
Why should Dale Jr. have to buy into a company that was started for him and his brother and sister. How many family businesses require their kids to buy into the company to take over control? Just because DEI has grown into a huge company doesn't mean that Dale Jr. should have to be allowed to buy into it. With all the money Junior has brought in for DEI he has long since earned it Tbfk#5.
Posted by: Jon | Feb 8, 2007 8:12:09 PM
tbfk#5...see thats the problem with you nascar idiots..you think this shit is for real!...those days are long gone!...there hasn't been a real race since the non restrictor plate days of the 80's.....now its the "wwf turns left"...wake up!...stop spendin your mortgage money on chase authentics you fool!
Posted by: csf64ss | Feb 8, 2007 7:57:33 PM
ah Hell here we go again..Kat I'm gonna apoligise right now...csf64ss shut up
I was a bit suprised at how much Jr wants, I have to agree with SallyB that Jr should "earn" his share of the company. I'm happy to hear that Jeffery and Kerry have found a new home! It just didn't seem right seeing Kerry running in machine other than DEI! I'm sure that Theresa and Co will get things straightend out before we return to Daytona in July!
Posted by: Tbfka#5 | Feb 8, 2007 7:33:09 PM
ok this has been goin on for way too long!..she aint, never was nothin but a trophy wife out for the "big buck's"...ala brook gordon...she is far from beautiful..rather doggy/inbreed lookin...lady clairol dyed southern white trash to the 3rd power!...has never come out in the lime-lite and say anything positive towards the sport(to busy sittin back countin the money from t-shirt sales)she secured herself in the family fortune with her daughter...so i think the best that could happen to dei would be to toss her ass!...let jr. kerry. and sis along with dale jrs natural mom run the show!...shit after teresa lost ty norris to "toyota waltrip" what more proof did anyone need as to where her head was at?....let her go back to answering phones at "her" families engine buildin business....can her now!..long over due!....tired of her "southern diva slut" act
Posted by: csf64ss | Feb 8, 2007 7:23:23 PM
I don't think it's unreasonable for Junior to want a piece of the company that now bears a part of his name. I'm not sure he should just be GIVEN that interest, but he should have the opportunity to buy into it. Teresa could concentrate on the legacy of Dale Sr., and let the next generation run the racing part.
Posted by: SallyB | Feb 8, 2007 7:10:53 PM
The comments to this entry are closed.
Advertisements
