Reaction to this news is sure to be mixed. While some Earnhardt Jr fans want him stay with HMS because they think it gives him a better shot to win the Sprint Cup championship, others think that Hendrick is more interested in the money and sponsors Earnhardt brings in than he is in giving him the tools needed to win races and championships.

I don’t think an extension makes sense for Earnhardt Jr considering his contract ends after next season. The pairing of Earnhardt Jr with Steve Letarte has improved Earnhardt’s on-track performance, and seems to have shown that Hendrick does indeed want Earnhardt to succeed in his equipment. Some conspiracy theorists may argue that Hendrick wants Jr to re-sign with the team, and is therefore putting him in better equipment, but I’m not sure I buy that.

If you look at the seats available after the 2012 season, the pickings are slim. The end of Denny Hamlin’s contract is unknown, but it runs through at least this year, and most likely next year. Even if Hamlin’s contract ends after the 2012 season, it’s unlikely he would leave Joe Gibbs Racing. And, it’s not a Chevy team.

Matt Kenseth’s contract may end after the 2012 season. If Carl Edwards leaves Roush Fenway Racing for JGR after this season, Kenseth could possibly follow suit, seeking another opportunity for the 2013 season. But RFR has Trevor Bayne and Ricky Stenhouse Jr waiting in the wings, so the No. 17 probably wouldn’t be available. Plus, it’s not a Chevy team.

Martin Truex Jr’s contract may be up for renewal in 2012. If it is, he may seek another opportunity if he feels like the team is not performing. Michael Waltrip Racing is signed with Toyota through 2012, so they could (hypothetically) change makes to Chevy, but it is unlikely that Earnhardt Jr would want to go there with the way the team has been performing. Also, there’s no reason to think MWR would switch to Chevy from Toyota.

If Red Bull Racing leaves as expected, any new entity could have a seat available for Earnhardt Jr. It’s unclear if the team would stay with Toyota through the 2012 season, but it is a possibility. Even if the team were to switch makes, Earnhardt Jr still is not likely to want to run with a team that is just starting out. That would make it more difficult for him to contend with a championship. And, with the last couple of years he has had, I’m sure he wants to be in highly competitive equipment.

Stewart Haas Racing could be thinking of expanding to three or four cars by the end of 2012, which would give Earnhardt the option to go there. But, that team has been struggling of late and Earnhardt probably doesn’t want to wait and see if they improve.

Earnhardt Ganassi Racing may or may not be an option. Earnhardt could return to his former team (then Dale Earnhardt Inc) and possibly run the No. 8 he helped make famous. But, that is highly unlikely given the rocky working relationship he had with team co-owner Teresa Earnhardt, his stepmother.

Richard Childress Racing won’t have an opening when Earnhardt Jr’s contract is up, though with their performance of late he would probably seriously consider going there. Paul Menard is signed through 2013, and Jeff Burton’s contract runs through 2014. Clint Bowyer is on the verge of re-signing with RCR and it is likely to be a three-year deal. Kevin Harvick’s contract runs through at least 2012, but if it expires that year, he will be signed to an extension long before that. He has been carring the banner for RCR the last two years so they won’t let him get away.

Plus, a move to RCR would further intensify the pressure Earnhardt is under to win a championship because it was his father’s team. I don’t think he wants that… at least not yet.

Another option would be bringing JR Motorsports to the Sprint Cup level. All indications at this point are that he doesn’t want to do that. I don’t think he wants to headache of running his own team at this time. Three to five years from now, it may be a different story. But for right now, I think he just wants to drive.

So, when you look at all the options out there when his contract expires, it makes sense for Earnhardt Jr to stay with HMS because it is the best Chevy seat available.

The car will be a JRM Chevy, meaning the chassis and engine will come from Hendrick Motorsports, which provides chassis and engines for JRM, but it will be listed as an RCR entry.

Dale Jr said:

This was an idea that came up as a way to pay tribute to my dad, and it’s pretty cool that it’s a collaborative effort between JR Motorsports, RCR and DEI. The Wrangler car is definitely in the top-10 of coolest cars that have ever been on the race track. A lot of people identify with it, and I can’t think of a better way to honor my dad and celebrate his induction into the NASCAR Hall of Fame than to bring the Wrangler colors back with the No. 3 on the side, similar to the ‘Wrangler Jean Machine’ scheme of the 80s. I think it will be worth seeing, and I’m looking forward to driving it at Daytona.

Childress added:

Bringing this group of people and these organizations together is the best way I can think of to honor Dale Earnhardt’s induction into the NASCAR Hall of Fame. Dale means so much to all of us, as well as his fans across the country and throughout the world. We created a special piece of history together in 2002 and, with Wrangler back on board the No. 3 Chevrolet at Daytona; we look to make some more history in July. I know the fans will love it and much as we all will.

Once the car hits the track in July, it’s sure to stir up some emotions. Before this year, no car adorning the No. 3 had been fielded in NASCAR’s top three series since 2002, when Dale Earnhardt Jr drove the No. 3 to victory at Daytona in July.

In 2009, Austin Dillon, Richard Childress’s grandson, debuted in the No. 3 Bad Boy Mowers/ RCR 40^th Anniversary truck in the Camping World Truck Series. In 2010, he started driving the No. 3 Bass Pro Shops Chevy in the truck series.

Up to this point, however, no driver has fielded a car with both the No. 3 and a sponsor that appeared on one of Dale Sr’s Chevys. In July, Dale Jr will drive the No. 3 with the Wrangler Jean Machine scheme Dale Sr made popular during the 80s. For some, seeing that car circle the track at Daytona is sure to bring up memories of the Intimidator. It should be an emotional day.

Former Dale Earnhardt Inc president of global operations Max Seigel took the idea to NASCAR Media Group, and together they shopped the idea for the show, which is called “Changing Lanes,” to networks.

BET bought 10 episodes of the show.

Siegel said:

For people who don’t know racing, it has drama built into it. There’s a lot of speed. There’s a lot of complexity in racing. Those are the key touch points to make an entertainment product successful. 

He added:

Every week, there’s a lot of competition, on-track performance, a lot of back story, and getting to know the participants. We want the audience to get to know what it takes to participate at this level.

According to a BET press release, Jonathan Smith and Michael Cherry are said to be two of the drivers participating.

Smith drives for Fadden Racing in the Camping World East Series, while Cherry drives for Addis Motorsports in the NASCAR Whelen All-American Series.

I blogged about this yesterday.

He wrote:

[T]he one entity that DEI ultimately couldn’t afford to part with, the one missing ingredient that eventually sidelined the No. 8 car, wasn’t a driver at all. DEI could survive without Dale Jr. But losing a big-money sponsor like Budweiser turned out to be a punch to the solar plexus that left the organization gasping for air.

With all due respect, the loss of Dale Jr is the reason Budweiser left. Budweiser was happy to stick with Dale Earnhardt Jr even as he moved to Hendrick Motorsports. But, Hendrick had a contract that prevented Budweiser from sticking with NASCAR’s most popular driver.  Had Jr stayed, Budweiser would have stayed, as well.

Caraviello contends:

Drivers, even immensely popular ones, are all replaceable; there’s always someone else ready and willing to fill in behind the wheel. Not so with sponsors, whose marketing dollars are the very lifeblood of the sport. When they go away, teams suffer and fall.

While that’s true, sponsors seek out drivers that they can market and that can offer a good return. Budweiser did not leave the sport. They’re sponsoring Kasey Kahne, and would most likely have still been sponsoring Jr and DEI.

Caraviello continues:

Jeff Gordon and Jimmie Johnson could both leave Hendrick Motorsports tomorrow, and the eight-time championship organization will still be as rock-solid — although maybe not quite as successful — as ever. Yet if DuPont and Lowe’s pick up stakes, the situation becomes much more tenuous.

The problem is that with Johnson and Gordon gone, Lowes and DuPont would most likely leave the team.

Looking at things the way Caraviello does makes little sense to me. If an event (A) occurs causing B, which then causes C, then one could argue that had A not happened, C would not have happened because B (which caused C) would not have had a chance to happen.

So, if Dale Jr doesn’t leave DEI, then Budweiser doesn’t, which means that the No. 8 would not have been shuttered.

DEI may have had to contract to a two-car team, but DEI would still exist under that banner. Instead, the team has merged and lost its staple, the No. 8, and now goes by Earnhardt Ganassi Racing. 

I’m not saying that Jr would have saved DEI, and I do agree with Caraviello on that point. But, DEI would have been in much better financial shape if Jr stayed, thus keeping Budweiser and their money there, as well.

And while I don’t know the reasons for some of the business decisions being made by Teresa Earnhardt, I suspect that pride and stubborness are leading to the mismanagement of the company that Dale Earnhardt Sr built.

Since Sr’s death, Teresa hasn’t had much interest in the sport, often skipping appearances at the track. She’s been called an absentee owner on several occasions.

She let pride get in the way when Dale Earnhardt Jr made his highly publicized bid for ownership in the company. Jr frequently complained that DEI was doing nothing to keep up with the competition. He contended that the team was not purchasing new technology that would help performance, and that the team was not expanding, despite being too big for its shop in N.C.

Teresa was so stubborn and arrogant that she let NASCAR’s most popular driver walk away, and expected the team to survive.

She wouldn’t even let Jr take with him the number he put back on the map. I can understand that the No. 8 has sentimental value to DEI, but it’s not like Jr and Rick Hendrick made an unreasonable offer. I think they also would have agreed to return the number, when Jr was finished with it. But, Teresa went out of her way to ensure that they would not get the number by seeking a percentage of licensing revenue.

Since Jr jumped ship, DEI has been a sinking ship. The team merged with Bobby Ginn Racing and Chip Ganassi Racing. It lost three sponsors in Budweiser, US Army, and Menards. It lost drivers Mark Martin and Paul Menard. And is rumored to be in danger of losing Martin Truex Jr and Bass Pro Shops.

Sadly, things will not improve until Teresa gives up control of the company, or she stops letting foolish pride and personal reason influence business decisions.

Kerry is the son of the seven-time Sprint Cup champion, and half-brother of Dale Earnhardt Jr. Jeffrey is the grandson of Dale Sr.

RWR fields that No. 31 and No. 41 Chevys in the series. The No. 31 will be the focus of the team, with the No. 41 running on a part time basis.

Jeffrey was, and still is, a developmental driver for Dale Earnhardt Inc. DEI and RWR formed an alliance, and DEI will provide some Chevys to RWR.

Jeffrey is slated to drive  at Dover International Speedway, Chicagoland Speedway, Watkins Glen International, Circuit Gilles Villeneuve, Michigan International Speedway, Atlanta Motor Speedway and Lowe’s Motor Speedway.  Jeffrey may also race at Iowa Speedway and Auto Club Speedway, but those would have to be switched for other races to keep Jeffrey eligible for Rookie of the Year in 2010.

Kerry Earnhardt will run “several” races for the team, making his debut with the team at Texas Motor Speedway. He is also expected to run at Talladega Superspeedway and Atlanta.

In addition to the Earnhardts, Stanton Barrett, Derrike Cope, Travis Kittleson, Tim Brown and Tim Andrews drive for RWR.

Richard “Slugger” Labbe will serve as crew chief for Gilliland. Labbe served as crew cheif for Michael Waltrip at Dale Earnhardt Inc, and won two races at Daytona there. He also was a crew chief at Red Bull Racing.

TRG Motorsports’ Kevin Buckler said:

We are determined to put the right pieces in place to be successful. David has the most experience in the COT car of any driver available. Slugger gives us a lot of experience working with the COT car. We were short a few pieces at Daytona, but I believe we have put the right people together to have a successful weekend in California.

Gilliland lost his ride at Yates Racing when Paul Menard joined the team, and Bobby Labonte and Hall Of Fame Racing formed an alliance with the team. The team was not able to find sponsorship for Gilliland.

The announcement led to questions about the future of Dale Earnhardt Inc. In addition, questions surrounded Martin Truex Jr.’s ability to become the face of the legendary team.

While DEI has never won a Sprint Cup championship, the team bears the name of a NASCAR icon. And for that reason, expectations are huge.

Jr.’s highly publicized departure seemingly looked to be the end of DEI. The team struggled in 2008.

Truex was hit with a 150 point penalty. Teresa Earnhardt was rumored to be considering selling the team. There were conflicting reports over Truex Jr’s option for 2009, which led to a fight with DEI’s president Max Siegel. Siegel eventually left the team. Mark Martin, like Jr., left the team for Hendrick. Paul Menard left the team for Yates Racing, taking his father’s Menard sponsorship with him. The team also lost its US Army sponsorship to Stewart Haas Racing and Ryan Newman. DEI was left with four cars, three drivers (Truex Jr, Aric Almirola, and Regan Smith), and one sponsor.

Enter Chip Ganassi Racing. CGR and DEI merged to form Earnhardt Ganassi Racing, virtually saving both companies. CGR brought Juan Pablo Montoya, and Target. He also had Wrigley’s signed for a half-year worth of sponsorship.

Things were looking up for the team, as EGR was said to be courting past champion, Bobby Labonte. But then, a deal feel through and Labonte was announced as the driver of Hall of Fame Racing’s No. 96, which has an alliance with Yates Racing.

When the dust settled from the offseason, and teams returned to Daytona International Speedway for practice for the 500, Truex unloaded with a fast car. He was in the top 5 in both practices. And when qualifying came around, he posted the fastest time, taking the pole.

This is exactly what EGR needed to do out of the gate. Taking the pole of the season’s biggest race will help this team put one of its toughest offseasons behind it.

While the work is not done yet, the team can pat itself on the back for a good showing in the first step of the Daytona 500. Next up, winning one of the Gatorade Duels.

Following Sunday’s showing, I for one will not be counting out EGR.

Even before Dale Earnhardt Jr.’s highly publicized departure from DEI before last season, the team was struggling to remain competitive. While Martin Truex Jr. made the Chase in 2007, Jr. lost six engines and crashed out of races twice.

As if losing Jr. wasn’t enough, the team had a mediocre, at best, 2008 season with Truex Jr. receiving a 150-point penalty and conflicting reports as to whether Truex had re-signed with the team.

At the end of the season, Mark Martin left the team for Hendrick Motorsports, like Jr. Paul Menard left, taking his sponsor with him to Yates Racing. The US Army left the team for Stewart Haas Racing. Everyone was abandoning ship.

At Chip Ganassi Racing, things weren’t much better. The team shut the doors to its No. 40 team and driver Dario Franchitti due to a lack of sponsorship money.

The team also fired Jimmy Elledge, which seemed to upset Juan Pablo Montoya. And, Montoya, at one point, was rumored to be leaving the team, while Reed Sorenson left the team for Gillett Evernham Motorsports.

When DEI and CGR merged to form EGR, they had Montoya, Truex Jr. and Aric Almirola under contract. They were missing a driver with a lot of NASCAR experience. They were missing a multiple race-winner. They were missing a veteran leader. In Labonte, they may have found all of that.

Labonte needs good equipment to be competitive, and EGR should be able to provide that. I know that the team has struggled, but some of that you have to put on its absentee owner, Teresa, who some say is not committed to winning.

Ganassi will be a presence at the track, and is committed to winning. He should be able to help keep the focus on on-track performance.

That, combined with Labonte’s leadership, should make any partnership a perfect match.