Bevy Of Questions Arise In Wake Of DEI-Ganassi Merger
This could be the "end of the road" for DEI Inc., following its merger with Chip Gannasi Racing (CGR), according to the WINSTON-SALEM JOURNAL's Mike Mulhern, who writes under the header, "DEI-Ganassi Merger Raises More Questions Than Answers." Until "somebody shows up" to explain the merger, the future is "hard to tell." DEI's PR operation has been "nonexistent this season, and Ganassi's hasn't been much better." Dodge officials, such as Motorsports Senior Manager Mike Delahanty, have been the "only ones stepping up and talking, but only in generalities." The new team will operate as Earnhardt Ganassi Racing with Felix Sabates, and Mulhern writes, "If Dale Earnhardt's name isn't on the masthead, why should General Motors be interested in spending money to support" DEI CEO Teresa Earnhardt's operation? The "only plus for GM would seem to be the addition" of driver Juan Pablo Montoya from CGR, but "why would Chrysler-Dodge be willing to give up one of its biggest names?" It appears that CGR Owner Chip Ganassi will "run the operation, but it's uncertain where Teresa Earnhardt will fit in" (WINSTON-SALEM JOURNAL, 11/14).
MATERNAL INSTINCT: NASCAR SCENE's Jeff Owens wrote of DEI's uncertain future, "Most people predicted this, of course, when Teresa Earnhardt made the ill-advised and ridiculous decision to allow" driver Dale Earnhardt Jr. to leave DEI for Hendrick Motorsports prior to the '08 season." In the wake of the merger, there will be "plenty of finger-pointing and I-told-you-sos aimed at Teresa Earnhardt after this disheartening development, and all of it is deserved." Because of her "unwillingness to work" with Earnhardt Jr., DEI is "no more." Teresa Earnhardt "should be ashamed, and Earnhardt fans everywhere have a right to be angry and sad" (SCENEDAILY.com, 11/13). SI.com's Tom Bowles wrote Teresa Earnhardt can "still link the family name to a sponsor the same way only Petty Enterprises can." With Dale Earnhardt's "multi-million dollar merchandise and licensing deals," there is a "host of extra reasons companies should be willing to jump on board." But "they're not, and the fact that these owners were backed into a corner tells you how bad the current economic conditions are" (SI.com, 11/13).
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Petty Calls Mergers In NASCAR An Emergency
Situation In Current Economic Market |
LOOKING FOR A NEW RIDE: ESPN.com's Terry Blount wrote Petty Enterprises, which had been "hoping to work out" a merger with DEI or CGR, "now has to look elsewhere." The options are "limited at best;" Bill Davis Racing "needs a partner to stay afloat." But "no bailout is coming," and the "only way to make it work is to hope two struggling teams together will become stronger than each team trying to go it alone" (ESPN.com, 11/13). Petty Enterprises Chair Emeritus Richard Petty: "We've talked to everybody about everything that could be talked about it and we're still standing here independent. We didn't want to take on anyone else's baggage. We had enough of our own." Petty added, "Mergers in our business right now is an emergency situation. In other words, if you're drowning, then you're going to get a partner to drown with you. That's basically what it looks like it's going to be, but maybe if they go together, maybe they won't drown" (SCENEDAILY.com, 11/13). Petty Enterprises (PE) CMO Mike Bartelli said that "five or six companies will share primary sponsorship" next season of PE's No. 43 Sprint Cup entry, and that "space has been sold for more than half of the 36-race season." Bartelli noted that while "sponsor opportunities remain on the car, the team will field the No. 43 for the full season regardless." USA TODAY's Nate Ryan writes GM, Ford and Chrysler are "reeling, sponsorless multicar teams are pooling resources to remain in business, and smaller, less successful teams such as Petty Enterprises seem to be feeling the biggest squeeze." Fox' Darrell Waltrip: "We're all in this government mentality that NASCAR is supposed to bail out those who can't make it. You have to compete at a high level. If you can't, you get left behind" (USA TODAY, 11/14). Richard Childress Racing Owner Richard Childress said of the economy's impact on NASCAR, "We're going to see more mergers, first of all. But I think you'll see good solid, full fields -- if not extra cars -- next year, even if the heavily funded teams have to miss some dates" (SI.com, 11/13).
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