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."

Mattes, who at the end of June will become the vice president of licensing for JR Motorsports, said those who believe in the driver will continue to support him no matter the number on his car or colors that come with it.

"He has the most loyal fan base and fans will continue to buy whatever car he's driving," Mattes said. "He truly does care about his fan base. It is not taken lightly and that's something he learned from his dad."

Long after Dale Earnhardt's passing in 2001, the Intimidator's No. 3 is still a top-10 seller today, Mattes said.

So it should come to no surprise that rumors of Earnhardt Jr. driving for his father's former team, Richard Childress Racing, and bringing back the famous No. 3 are swirling.

"I have a great relationship with Richard [Childress], I feel like he has really stepped up his program but I've got to do some soul searching on how I feel about driving the No. 3 car," Earnhardt Jr. said. "With respect to my father, I don't feel very comfortable with that, he built that number ... but I never say never."

Mattes said Dale Jr. will continue to be the industry leader in product sales as long as he continues to be a good racecar driver on the track.

Precisely Earnhardt Jr.'s motivation for leaving his father's company, a company his father intended to leave for his children. However, the driver said he needs to put himself in a position to win championships and continue to put on a good show for his fans.

"DEI will always be a special place for me and my family ... ," Earnhardt Jr. said. "However I am 32 years old, the same age as my father when he made his final and most important career decision, and the time for me to compete on a consistent basis and contend for championships is now. Since that is what I plan to do, I feel strongly that I would have my father's blessing."