Uncertainty faces licensing industry with Jr.'s move

MOORESVILLE, N.C. -- Millions of fans toting red Budweiser coolers this weekend in Darlington and wearing No. 8 hats will soon be in the market for new gear as their favorite driver, Dale Earnhardt Jr. is leaving his late father's company, Dale Earnhardt Incorporated.

At a news conference inside JR Motorsports on Wednesday, NASCAR's most popular driver announced he will be looking for a new ride for the 2008 season and is doubtful the No. 8 will go with him, but hopes his longtime sponsor Budweiser will.

Earnhardt Jr. leaving DEI at end of season

In a news conference at his JR Motorsports race shop on Thursday, Dale Earnhardt Jr. announced he will leave DEI at the end of this season.

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Experts in the licensed product industry are somewhat bracing for the impact this announcement will have on product sales, the demand or perhaps lack there of.

"We have to wait and see where he goes and then NASCAR will spring into action," said Mark Dyer, vice president of NASCAR's multi-billion-dollar licensing division in Charlotte. "We'll support our licensees and get involved in a big way."

Some speculate the demand for Dale Jr.-licensed products will come to a screeching halt until the driver signs with a new team next season leaving manufacturers with warehouses full of unwanted No. 8 Budweiser-emblazoned product.

Or the opposite may happen, said Joe Mattes, vice president of E-commerce of Turner Sports and head of the NASCAR.COM Superstore. Fans may flock to the merchandise haulers to buy up every stitch of Dale Jr. product possible starting with the Cup race this weekend in Darlington.

"We are going to pay close attention to all channels of retail and distribution. We've never seen a driver of this magnitude announce a team switch this early in the season. It's going to be a great test case for us to learn from," Mattes said.

One thing is certain, Mattes added, licensees such as Motorsports Authentics and Checkered Flag Sports will be measuring twice and cutting once.

"Until there is enough data to go on, everyone is going to be super careful and work closely with their distributors," he said. "It's just way too early to tell. We need at least two weeks to see what the market will do." (Continued)