The eagle has landed. Or in this case, Jr. has made a decision. But that was merely step one in a process with high stakes for a number of parties.
After saying publicly there was no room at the inn - his team was already at NASCAR's mandated four-car limit - Rick Hendrick fabricated a vacancy for Dale Earnhardt, Jr. when Kyle Busch suddenly requested a release from his contract. Whether Busch's decision to leave was voluntary or "requested" we'll never know.
When Jr. announced last week that he was signing a five-year $100 million contract with Hendrick's mega-stable of Nextel Cup drivers, some wags suggested that it put an end to the greatest free agent story in the history of sports. Not so fast. Left unanswered at the press conference, a/k/a the Hendrick-Jr. love-fest, were the following questions: What will Jr.'s fans think of his association with Hendrick's other drivers and on-track rivals, Jeff Gordon and Jimmie Johnson? What number will adorn Jr.'s car? And who will Jr.'s primary sponsor be?
The documented loyalty of NASCAR fans - to drivers and products alike - is legendary. Jr.'s switch from Dale Earnhardt, Inc. to Hendrick will cause barely a ripple in the relationship with his fans. They crave the same thing he does: More celebrations in Victory Lane. If fraternizing with the enemy - at least in the garage - will lead to more wins, the fans will forgive Jr. his indiscretion. NASCAR's most popular driver for the past four years, Jr. will continue to lead the fans' popularity polls.
As stated earlier in this space, NASCAR controls car numbers and authorizes teams to use them. Jr.'s #8 will remain at DEI unless an accommodation is reached between Hendrick and Jr.'s stepmother, Teresa. NASCAR could get involved, although there is limited precedent to do so. And why should they? If Jr. sports a new number next year, it will result in the sale of hundreds of millions of dollars in new merchandise, a portion of which will find its way into NASCAR's coffers.
Jr.'s switch to Hendrick has created a competition in corporate boardrooms that is every bit as fierce as the competition on the track. Budweiser's deal to sponsor the #8 car is with DEI, but the contract expires at the end of this season, giving the brewery the freedom to follow Jr. to Hendrick. At the press conference announcing his deal with Hendrick, Jr. alluded to his preference for the red and white of Budweiser when he said: "I like Budweiser, and they're funner than hell."
The feeling is apparently mutual. Tony Ponturo, A-B VP/Global Media & Sports Marketing, said in a statement that the company "wasn't prepared to let Earnhardt slip away. We look forward to exploring options with Hendrick Motorsports and JR Motorsports (Jr.'s company) to continue Budweiser's relationship with (Earnhardt) as he enters this new stage of his racing career." Translation: Budweiser isn't about to give up its marquee spokesperson without a financial fight.
Any continuation of the Bud-Jr. relationship is complicated by the fact that Hendrick currently has four sponsors signed for next year, including Kellogg, sponsor of Kyle Busch's #5 car. Can Hendrick jettison one of those sponsors to bring on Budweiser? Should he bring Budweiser aboard when he doesn't really have to financially?
A beer sponsorship creates limitations - some legal, some ethical - that don't apply to, say, Kellogg. On the other hand, on the same day as the Hendrick-Jr. announcement, the New York Times reported that Kellogg plans to phase out advertising of some products to children under 12. The reason? Too much sugar in the Fruit Loops and Cocoa Krispies. The company is self-regulating in an attempt to stave off congressional legislation limiting promotion of certain products that don't meet nutritional guidelines.
So if neither Budweiser nor Kellogg can be marketed to all segments of the population, which one does Hendrick choose?
Either way, Hendrick is guaranteed a minimum of $20 million annually from the sponsor of Jr.'s car.
Even though one decision has been made, other business issues remain undecided. NASCAR's biggest reality show has several episodes remaining.


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