skinsfan1992 Posted May 25, 2007 Share Posted May 25, 2007 THIS EXPLAINS A LOT IMO Earnhardt's will left 100 percent of DEI to Teresa SCENEDAILY - 8:10PM ET THURSDAY MAY 24, 2007 - BY BOB POCKRASS - ASSOCIATE EDITOR When Dale Earnhardt Jr. demanded 51 percent ownership of Dale Earnhardt Inc., it might have seemed logical that the son of the team founder would already own part of the company. So why doesn't he? Because the will of his father, the seven-time Cup champion killed on the final lap of the 2001 Daytona 500, didn't give him an ownership stake in the team. Earnhardt's will, signed in December 1992, awards 100 percent of DEI to his widow, Teresa, Dale Jr.'s stepmother. The estate filings, which were probated in Iredell County, N.C., show that Teresa Earnhardt owns the race team. According to the estate inventory, Earnhardt Sr. owned 100 percent of the stock in DEI, which was formed in 1980, two years before his marriage to Teresa. Earnhardt Sr. gives Teresa the power "to retain and carry on any business or property in which I may own an interest at the time of my death." Part of the assignment of assets approved by the court about 13 months after his death includes a provision that Teresa gets "all of the stock owned by decedent in Dale Earnhardt Inc." Typically, owners of companies leave their entire company to their spouse to avoid paying significant estate taxes they would incur if part of the company was given to the children. There is a trust, which was likely set up to pay bills while the will was being probated. There could also be a trust set up for Earnhardt's children, but that is not clear in the court documents. Dale Earnhardt Sr. had four children - Kerry from his first marriage, Kelley and Dale from his second marriage and Taylor from his marriage to Teresa. When the will was created, DEI was not the three-car Nextel Cup team that it is today. It mostly ran Busch Series races with Dale Earnhardt Sr. as the driver. Dale Earnhardt Jr. began competing in the Busch Series full time for the team in 1998, the same year that the team began competing regularly in Cup. Link to comment Share on other sites More sharing options...
dreamingwolf Posted May 25, 2007 Share Posted May 25, 2007 Typically, owners of companies leave their entire company to their spouse to avoid paying significant estate taxes they would incur if part of the company was given to the children. sorry to make this political, but this is one of the reasons why I really hate the death tax. Link to comment Share on other sites More sharing options...
skinsfan1992 Posted May 25, 2007 Author Share Posted May 25, 2007 I am with you on that one I just wish Thersa was not such a B**** Link to comment Share on other sites More sharing options...
Chief skin Posted May 25, 2007 Share Posted May 25, 2007 That sheds plenty of light on why Junior and her have a strained relationship, hell he should have left DEI years ago Link to comment Share on other sites More sharing options...
SkinsNut73 Posted May 25, 2007 Share Posted May 25, 2007 Well, in 1992 when he signed the will, Dale Jr. was just a teenager. Perhaps the thinking was Jr. wasn't qualified to run the business end of things in the event Sr. passed away. Then again, Sr. could have updated the will at a later date and given Dale Jr. more of a stake in the company (at the risk of possibly pissing off Theresa). I'd be rolling over in my grave if I built that corporation and then my son goes to drive for someone else... Link to comment Share on other sites More sharing options...
Cskin Posted May 25, 2007 Share Posted May 25, 2007 The thing is.... she's going to own 100% of nothing within a few years after Jr. leaves. He's the face of that organization.... and it is his last name and his status as the Great Intimidator's son that makes him the most popular driver in Nascar. I read somewhere that his souvenir sales total nearly 40% of all Nascar sales. Ever been to a race? Seems half the fans have an 8 plastered on them somewhere and some sort of Budweiser Red gear on. Teresa is simply going to watch her team fold up without Jr. and Budweiser. Link to comment Share on other sites More sharing options...
canethang 305 Posted May 25, 2007 Share Posted May 25, 2007 Well, in 1992 when he signed the will, Dale Jr. was just a teenager. Perhaps the thinking was Jr. wasn't qualified to run the business end of things in the event Sr. passed away. Then again, Sr. could have updated the will at a later date and given Dale Jr. more of a stake in the company (at the risk of possibly pissing off Theresa).I'd be rolling over in my grave if I built that corporation and then my son goes to drive for someone else... Junior never even drove cars till he was 15 or 16, late models on the North and South Carolina short track circuit, hell this will predates DEI as a race car team back then it was only a marketing arm for Senior merchandise. There are several reasons: a) he certainly never expected to die so soon he never thought his wife would do this to Junior ( and Kelly and Kerry for that matter) c) he never thought DEI would get so bad after he died that they couldn't be competative which is the main reason Junior wanted control It it was it is, I'm a Junior fan and it kills me inside he won't drive for his dad's company but this is eerily reminiscaent of the Skins post Jack Kent Cooke, he wanted John to own the team and didn't want him to get killed on the inheritance taxes so he left it to a trust so John could buy it at it's value never thinking someone would pay 850 million for a franchise valued at 350 million. It's been well documented around Nascar media as well as by current/former drivers, Rusty Wallace and Jeff Gordon, most notably who have said in their conversations with Senior he had intended for Junior to take over the family business one day, kinda like Coach Gibbs has passed the torch to JD. Link to comment Share on other sites More sharing options...
McMetal Posted May 25, 2007 Share Posted May 25, 2007 All it comes down to is Dad trusted new Mom to do the right things for his kids (her step-kids), and of course she did not. She is one miserable looking human being. Link to comment Share on other sites More sharing options...
skinsfan1992 Posted May 25, 2007 Author Share Posted May 25, 2007 she will never have that company sucessful as it was when DEI was winning almost all the plate races now granted I think alot of the reason they lost a bunch of momentum was the stupid decision to change crew chiefs a couple years I think they could have at least been competive in every race and I also think they shouldve kept MIKEY he was a good driver when he was with DEI Link to comment Share on other sites More sharing options...
EersSkins05 Posted May 25, 2007 Share Posted May 25, 2007 I'm not a racing fan by any means, but weren't we all aware that she owned the company? He's been fighting for years to be able to license his own stuff in his own name, but she's been telling him that he couldn't use his own name b/c DEI owned the rights to "Dale Earnhardt". Link to comment Share on other sites More sharing options...
canethang 305 Posted May 25, 2007 Share Posted May 25, 2007 I'm not a racing fan by any means, but weren't we all aware that she owned the company?He's been fighting for years to be able to license his own stuff in his own name, but she's been telling him that he couldn't use his own name b/c DEI owned the rights to "Dale Earnhardt". Everyone knew that but in the midst of all the fuss over him leaving someone went and dug the will out since it's public info which is why all this came back up. I wouldn't be surprised if Teressa isn't the one who released to the media so she could throw it up in Junior's face that his father didn't want him to have it (even though we all know that to be false). She's a petty, spiteful women but she did build the companies non race track entities to the biggest in Nascar and a lot of her practices with merchandise licensing are used in other sports not just Nascar. She does still deserve ownership stake in DEI just not the 100% she has, his hole family deserves to reap the benefits. Junior only wanted 51% so he could control the destiny of the racing part of the company it wasn't greed. As for the trademark, that's why it's JR Motorsports or he'd have had to cut her in on the $ if he called it anything with Dale earnhardt in it. Link to comment Share on other sites More sharing options...
Recommended Posts
Archived
This topic is now archived and is closed to further replies.