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Head2Head: November 13, 2008

Head2Head: November 13, 2008

Autostock

Will the new Earnhardt Ganassi Racing be greater than the sum of its parts?


Head2Head: Synergy

Is the DEI/Ganassi merger good for both teams?

By NASCAR.COM
November 13, 2008
1:04 PM EST

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On Wednesday, the rumor became official: Dale Earnhardt Inc. and Chip Ganassi Racing joined forces to create a new four-car team called Earnhardt Ganassi Racing. The four cars will be the No. 1 driven by Martin Truex Jr., the No. 8 driven by Aric Almirola, the No. 42 driven by Juan Montoya and the No. 41 for which a driver has not been named.


Sponsorship was no doubt one of the prime reasons for the joining of the teams. Now two of the cars are fully funded for 2009, while Montoya’s car will be partially funded. A sponsor for the No. 8 car is still being sought.


There are advantages and disadvantages to mergers in NASAR. Is the DEI/Ganassi merger good for these teams? Read both sides of the argument and then weigh in with your take.


Is the DEI/Ganassi merger good for both teams?


YES NO

This is a tough time in NASCAR. With the economy in shambles, getting sponsorship dollars has become almost impossible. Add to that the fact there are only a handful of top-quality drivers out there, and if you’re a mid-level team you’re in a serious uphill battle.

For those reasons, it was imperative that Ganassi Racing and DEI merge to form the new Earnhardt Ganassi Racing — they were dying.

DEI was trying to run a four-car operation when it had no business attempting it. The team didn’t have the right lineup of drivers and frankly just couldn’t compete with Hendrick and Gibbs and Childress with four mediocre cars.

The same could be said for Ganassi, who put too much stock into Reed Sorenson and Dario Franchitti only to see Franchitti fail miserably and Sorenson never live up to expectations.

Both teams had sponsorship issues that only added to their demise. So putting the two teams together makes sense on a couple fronts.

First, their driver lineup isn’t as bad as you might think. Martin Truex Jr., Juan Montoya and Aric Almirola are pretty solid.

Second, by combining the teams, sponsorships should be a little easier to come by and the cost of operation will be much less and if done correctly — this team can use these new resources to truly make itself better.

I’m all for the merge and expect some big things to come from Earnhardt Ganassi Racing in the near future.

Bill Kimm, NASCAR.COM

The opinions expressed are solely those of the writer.

Should Dale Earnhardt Inc. and Chip Ganassi Racing have merged? No, simply because there were better routes to take for both struggling organizations.

Sure, it was strictly a business deal due to slumbering sponsorship and now leaves the new team with four cars (1, 8, 41 and 42), three drivers (Martin Truex Jr., Aric Almirola and Juan Montoya) and two sponsors (Bass Pro Shops and Target). Montoya’s 42 car is funded for half a season.

So two fledgling teams joined and are right back at square one, with half their organization under-funded and a team’s worth of workers (and Regan Smith) presumably out of a job.

Put simply, that’s business.

But there appears — on the outside — to be better scenarios for both teams if they had indeed wanted to merge with another organization.

For DEI, it should have made the move a year ago and joined with Richard Childress Racing. That would have given RCR its fourth car, and perhaps a fifth before NASCAR’s four-car limit takes effect after next year. It would have also bolstered DEI’s presence, only adding to the two teams’ current engine deal.

For Ganassi, it should have joined with Gillett Evernham Motorsports. It would have eliminated the lack of sponsorship and driver for GEM’s 10 car, and would have given the two garages one four-car team with a solid driver lineup. Had Dodge continued its downward spiral, Ganassi’s history with Toyota would have paved a smooth transition.

DEI and Ganassi followed the trend of mergers. Problem is that it was at the wrong time and with the wrong partner.

Josh Pate, NASCAR.COM

The opinions expressed are solely those of the writer.

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