Dale Earnhardt’s 2007 free agency may seem like another contract story. But now we realize that it was something far more pervasive than that.

On his podcast Dale Jr Download's #ASKJR segment this week, Dale Jr. recalled how close he was to signing a contract with Joe Gibbs Racing before finally choosing Hendrick Motorsports after leaving Teresa Earnhardt’s DEI.

“I went all the way to Washington to meet with Joe, and we were at (Washington Commanders owner) Dan Snyder’s house,” Junior recalled. “Joe gave us a term sheet, and the numbers on that made me physically nauseous because it was so big.”

Junior further explained on the Dale Jr Download how the offer stunned him because he had been at DEI “under a very modest contract,” adding, “When I saw what the value was out there for me… it was insane.”

In fact, this exact DEI exit was one that immediately stemmed from ownership claims made by Dale Jr. His eventual move into Hendrick Motorsports in June of 2007 became one of the most talked-about lateral moves in NASCAR as he led a 10-year run there, winning several famous accolades like the 2008 Michigan win and the 2014 Daytona 500.

JGR too saw Dale Jr.’s capabilities and roped in an expert to influence Jr. to sign for them. “Dan Snyder said, you’re not leaving here without signing that,” Dale said, almost feeling forced, recalling Snyder adding “ownership of this business and stock in this and stakes in this.”

But Dale Jr. refused to rush and stopped them. “I can’t sign this,” he said. “I need to think about this… I’ve got to take a couple days.”

This is the exact pause that kept Hendrick Motorsports alive and helped it bag titles for a long time in NASCAR. But as we all know how it turned out, it is necessary to recall the split that caused Dale Jr. to part ways with Teresa Earnhardt. Let’s read about the same.

Why Dale Jr. walked away from DEI

Dale Earnhardt Jr.’s split with Teresa Earnhardt at DEI was initially one that started off as a battle about control after the passing of Dale Earnhardt Sr., but it was in no way about salary.

In February 2007, Dale Jr. publicly said that any re-signing required majority ownership, meaning more than 50 percent. However, as the year progressed into May, the talks seemed to have broken down, and according to Autoweek, it was reported that Jr. had asked for 51 percent of the team that Teresa now ran after Dale Sr.’s passing in 2001.

Dale Jr. said, “We never came close,” while stressing money was not the issue. He believed that if he didn’t have ownership control, he wouldn’t get the kind of equipment from the company that could help him win the championship.

That's what ultimately made him leave in 2007, and he joined Hendrick, a move that changed American motorsport in ways that are still visible today.

Read more at the RFK Racing Digest!

Written by

Uday Jakhar

Edited by

Suyashdeep Sason