Dale Earnhardt, Inc. and Ginn Racing are working on a merger agreement that, if finalized, would meld the two NASCAR organizations into a single company, multiple sources close to negotiations told ESPN.com on Monday. The deal is not done, but a decision will be made soon. Both organizations hope, sources said, to firm up outstanding details and announce a partnership immediately. This deal is an elaborate proposition that entails several obstacles, including how best to reduce from six Nextel Cup teams to the maximum four. The obvious answer, sources said, would be to eliminate Ginn's financially-strapped Nos. 13 and 14 teams.
I really don't know what to think about this report. I thought the merger was probably dead. Apparently something has sparked it again since the sources ESPN is using spoke today about the matter. Is there a way to sort out the issues?
Well to start with Sterling Marlin and Joe Nemechek can be let go at the end of the year because their contracts expire. ESPN is also reporting that Aric Almirola has been tabbed to share the 01 ride with Mark Martin next year. Therefore, Martin and Almirola could share the 01 Army car for DEI next year. That leaves Regan Smith who has been promised the 14 by Ginn. Put him in the 8 instead and "Bob's Your Uncle" you've got it. WOW!
DAYTONA BEACH, Fla. - Ginn Racing is not broke. Ginn Racing will be racing all three Cup teams at Chicago Speedway next weekend. Ginn Racing is not selling off the Nos. 13 or 14 for points to other teams. However, Ginn Racing did let go of seven people earlier in the week, is expected to discontinue a full-time effort in the Busch Series after Daytona and is currently revisiting preseason talks of a merger with Dale Earnhardt Inc.Bottom line: Ginn expanded too quickly and it was time to cut the fat. At least Ginn could afford to do that.
Ginn GM Jay Frye has been forthcoming with the media. When the season started he expected to have three fully-funded race teams. That didn't happen. Panasonic didn't come through. Ginn Resorts was the sponsor of record on both the Nos. 13 and 14.Even without outside funding, Sterling Marlin and crew chief Slugger Labbe accomplished what no other team outside the top 35 in 2006 owner points could do — qualify for the first five races. Still, Frye humbly admits he'd be better off with two strong teams rather than three diluted squads.
A Ginn-DEI marriage provides positives for both organizations. Ginn can benefit from DEI sponsor and marketing relations. DEI acquires the long-needed space it's desired along with owner points for Paul Menard from the No. 13. With the newly formed DEI/RCR engine development program, there would be eight cars to pull data from instead of six. RCR is currently putting the pieces together for a fourth team as well. Part of Hendrick Motorsports success stems from the amount of feedback it receives from providing engines for nine teams. DEI/RCR hopes to make similar gains. At the least, DEI could pick up one team from Ginn and continue a satellite partnership in similar fashion to Hendrick and Haas.
NASCAR's top-35 rule protects its strongest organizations. That hasn't been a problem for Ginn — yet. The Car of Tomorrow, that was billed as the great equalizer, has widened the gap between the three tiers of Nextel Cup. Perhaps this was the simple solution to weed out the weaker teams if NASCAR moves to franchising in 2009.
Denver-based Furniture Row Racing, which rents space from Ginn as an East Coast satellite, has been rumored to be running Marlin on a limited schedule next season but would like to use the affable Kenny Wallace to garner new sponsorship for the 78 and move Furniture Row to a second team. Ginn has denied Marlin's owner points would be part of that package.
However, there was pre-season talk of a DEI/Ginn merger, and that story has heated up again. Keep in mind the "four" factor. If NASCAR contracts to 44 franchised teams and 11 owners - DEI/Ginn - on the radar screen. Could be expedited quicker by Ginn merger.
Lee sounds a little confused. She says Ginn is not selling off numbers for owner points. Then she says in a merger with DEI, that company would acquire the owner points from the 13 from Ginn for the 15.
Oh well, it wouldn't be the first time the Sporting News/Fox writer got it wrong. She better hope I don't win the NGS contest. I can write about NASCAR better than her. And that would have to suck for her. 'Cause as all of y'all know, I ain't worth a damn.
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