When bad things happen people naturally look for someone to blame. We need someone who we can peg our frustrations on and someone to explain away often complex issues. Right or wrong it does happen.
In the case of Dale Earnhardt Inc. this need to blame someone has of late fallen on the shoulders of team CEO Teresa Earnhardt and former President of Global Operations Max Siegel. Now I am not going to try to argue away the anger that people have for Teresa Earnhardt because it is much deeper than the present situation, but I think Max Siegel has carried an unfair load of the blame.
As I read through the ESPN comment section on the story about his departure from DEI to run NASCAR’s Diversity Program I was a little shocked by the opinions expressed. They ranged from all out blame for the position DEI found themselves in to ‘good riddance;’ like Max Siegel had just gone to those people’s houses and kicked their dogs.
Siegel came on board at DEI in 2007 right in the midst of Dale Earnhardt Jr.’s contract negotiations. Siegel was a newcomer to the sport and many were skeptical of the Notre Dame grad and former music executive, including Dale Jr. In time though they came to respect Siegel and his professionalism.
He can be credited for keeping Junior at the table as long as he did. Even Junior has said if Siegel had been there from the beginning of the contract negotiations things might have turned out differently.
Unfortunately for DEI an agreement could not be reached with Junior and the prodigal son elected not to stay. This event more than any other can be most credited with facilitating the collapse of DEI. It is important to note though that this was not Max Siegel’s fault.
Siegel worked hard to keep DEI competitive. He was instrumental in the merger with Ginn Racing that pushed DEI to four cars and the engine deal with Childress that helped the team overcome the issues they experienced in prior seasons.
Sponsorship was always an issue for the team though and as 2007 progressed into 2008, it became apparent that the talent and money was heading out the door. DEI and certainly Siegel couldn’t compete with the allure of Hendrick Motorsports or the shiny new Stewart-Haas team.
DEI lacked big names (with the exception of Martin Truex Jr. who they were able to retain) and because of that they lacked big name sponsors. That wasn’t Max Siegel’s fault. Even the most seasoned former marketing executives turned team leaders (Tom Reddin at Petty Motorsports and Steve Lauletta at Ganassi) have had a hard time securing sponsorship for their teams. Trust me it is not easy to go to a company and convince them to pour tens of millions of dollars into your organization.
Now I’m not saying Max Siegel did not have his stumbles here and there, who wouldn’t have? But he jumped on a ship that was quickly taking on water in 2007 and all he had was Dixie Cup to bail water. He kept DEI alive when others probably would not have and he helped facilitate a final merger that kept the Earnhardt name in the sport and Martin Truex with a job.
I’m a firm believer that team executives need to have motorsports experience because it really is a different beast. And honestly I probably would not have brought on Siegel, but I think given the circumstances he did the best he could and the best anyone could have.
I think NASCAR made a smart move putting Siegel in charge of the Diversity Program. I think they have a competent, experienced leader who may actually be able to do something constructive with the program. I for one respect the man for what he has done and wish him the best of luck in his new position.
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on Jan 20th, 2009 at 2:27 pm
Journo wrote
“Sponsorship was always an issue for the team though and as 2007 progressed into 2008, it became apparent that the talent and money was heading out the door. DEI and certainly Siegel couldn’t compete with the allure of Hendrick Motorsports or the shiny new Stewart-Haas team.
DEI lacked big names (with the exception of Martin Truex Jr. who they were able to retain) and because of that they lacked big name sponsors. That wasn’t Max Siegel’s fault. Even the most seasoned former marketing executives turned team leaders (Tom Reddin at Petty Motorsports and Steve Lauletta at Ganassi) have had a hard time securing sponsorship for their teams. Trust me it is not easy to go to a company and convince them to pour tens of millions of dollars into your organization.”
Please explain RCR then.
They haven’t any “star” drivers,yet flourish.
Name any other racing team that has rushed to hire Siegel,now that he’s a free agent.
on Jan 20th, 2009 at 2:38 pm
CVT- You’re telling me that Jeff Burton, Kevin Harvick and Clint Bowyer aren’t big names? Who are big name drivers to you? I fail to see the logic in that comment.
As far as Max Siegel not being sought after by other teams who is to say he wasn’t. I’m not aware of any, but I’m also not a confidant of Max Siegel. Likewise he is taking an executive position with NASCAR, which I think speaks to his credentials.
I don’t know if you’re aware of this, but there aren’t a lot of team president jobs out there. I again fail to see what this has to do with him not being the one to blame for the position DEI find themselves in.
on Jan 20th, 2009 at 3:13 pm
If you did not work for DEI You have no Idea of what went on there
on Jan 20th, 2009 at 3:16 pm
and you have no business Defending him
on Jan 20th, 2009 at 4:37 pm
Mr. McLeod- What was so terrible about Max Siegel? I understand a lot of good people lost their jobs (including Mr. Siegel), I have been in those situations before, but he was there to keep the business running and for better or worse that is what he did.
I have not worked for DEI, but I am familiar with the team’s situation. You don’t need to have worked somewhere to know the climate of an organization. I respect Max Siegel and feel that the name calling and ill will that has been put upon him has been unreasonable.
His employment with the team numbered just about two years, in which time he was able to keep the team going and keep a lot of people employed. The present situation that the team finds itself in was the result of a perfect storm, not the doing of any one man. I know you know how difficult it is to find sponsorships and in this economic climate it is bordering on impossible.
There are a lot of hurt feelings out there and I completely understand that people want to blame someone. But the collapse of DEI as we once knew it was not all Max Siegel’s fault. And I don’t need to have worked there to know that.
on Jan 20th, 2009 at 5:40 pm
Journo
You asked about “big name drivers”, I wrote about “stars”. Two very different things.
You can count “star” drivers on one hand. Jeff Gordon,Tony Stewart, JJ, Carl Edwards…Kahne and Kyle Busch could be.
Dale Jr is in a separate category.
on Jan 20th, 2009 at 6:17 pm
CVT- RCR is successful because they have big name drivers who have a lot of on track success. They have had all of their drivers in the Chase for the last couple of seasons and they have consistently had wins each season. It is a well run, well supported organization.
Regan Smith and Aric Almirola are not big names or stars. The loss of Mark Martin and Dale Jr., who both have large fan bases and are very marketable was a big loss for DEI. It makes it much harder to sell sponsorships when you have unfamiliar or untested names.
You don’t necessarily need to have ’stars’ to be successful. I would argue though if you are counting Kyle Busch than you should count Kevin Harvick and Jeff Burton at least. They are both very popular and quite successful.
on Jan 20th, 2009 at 6:49 pm
“RCR is successful because they have big name drivers who have a lot of on track success. ”
Wrong. They could insert half-dozen other competent drivers and get the same results.
“It is a well run, well supported organization. ”
Correct. see my earlier post. They are growing while others disappear. Hands-on, knowledgeable ownership…unlike Teresa Earnhardt.
“The loss of Mark Martin and Dale Jr., who both have large fan bases and are very marketable was a big loss for DEI.”
If Mark Martin hadn’t joined HMS, he would have been spending alot more time at home in Florida.Sponsors weren’t going to climb over themselves to underwrite his ride.(unlike Edwards) Ask Bobby Labonte.
on Jan 20th, 2009 at 7:09 pm
CVT- Your assertion that any drivers could have the same success is very wrong. Jeff Green didn’t have much success in Childress’s cars, neither did Mike Skinner, Robby Gordon or Johnny Sauter. You can’t have success on track without talent behind the wheel and Jeff Burton, Kevin Harvick and Clint Bowyer all have talent. That is why they have had 12 wins in the last three years and all three were in the Chase in the last two seasons. Check Hendrick if you want an organization where talent matters just as much as equipment. When Jeff Gordon and Jimmie Johnson were winning races and championships Casey Mears had an average finish near 20th.
If you think the talent behind the wheel doesn’t matter you’re crazy.
Mark Martin and Bobby Labonte are two very different cases. Mark Martin was running very well with Ginn in 2007 when DEI came in. But like this season he was only running a partial schedule. Anyone who knows anything about racing will tell you that you can’t have success running part time. Bobby Labonte hasn’t been competitive in a long while. Not true for Mark Martin.
Despite your feelings toward Mark Martin he is a very marketable person and personality. I guarantee you Kelloggs doesn’t have buyers remorse.
on Jan 20th, 2009 at 8:08 pm
Journo,it’s hard to have a discussion when you misrepresent what I write.
I never said any driver, I said a half-dozen.
Green,Skinner, R Gordon, Sauter aren’t among the half-dozen.
After Dale Sr’s death, RC went into an understandable tailspin. The team suffered. Hiring Jeff Burton helped turn him and the RCR team around. It’s to his credit
HMS is another story. Mears was there for reasons unrelated to his performance, but his lack of performance got him fired.
My feeling about Martin have nothing to do with the fact that he wouldn’t have a Tier 1 ride if he wasn’t with HMS.
on Jan 20th, 2009 at 8:29 pm
Kudos to both you Journo, and likewise CVT for your passion for opinion. That’s why I love this site!
I am of the opinion that the demise of DEI started way back, even before Dale’s death in 2001. Michael Waltrip? Please! A couple of restrictor plate 500’s, w/ the 2nd being rain shortened. Sheesh. But the NAPA was good for DEI.
No…..the real problem was the result of people having this impression that Teresa was somehow predominately responsible for Dale Sr.’s grand business success. Now I do not know her personally and speak only as a outsider, but the time for Teresa to move out of the team owner position was the day after Sr’s tragedy. Sure, retain the #3 rights for her family, but not the team. When dealing with employees and their families, DEI “the team” is a business and not a shrine.
But then again, that’s Monday (although seven years removed) morning quarterbacking….I guess!!!
on Jan 20th, 2009 at 8:46 pm
CVT: I’m not really sure where you were going with all of this, but I think the point of the post was that DEI’s demise started taking place a long time before Max Siegel appeared. And much of DEI’s problems attracting new sponsors revolved around the fact that they didn’t have those “big name” or “star” drivers (to use your words). RCR is a well run organization, but they do have good drivers. You can’t say that Almirola, Regan Smith, and Paul Menard are even in the same category as Harvick, Burton, and Bowyer. Childress can get the sponsors because he can deliver the performance. Almirola, Smith, and Menard couldn’t get it done in the #24, #48, or #99.
I do think you are wrong about Mark Martin. If Mr. Hendrick thinks enough of him to put him in a car, why wouldn’t Joe Gibbs, Richard Childress, or Jack Roush (again)? The guy can still drive, has the performances to back it up, and a very strong fan base. I don’t believe Hendrick gives Cup rides away for charity.
And I’m curious to know who those other “half-dozen” drivers are that could be put into RC’s cars and get the performances? And don’t give me the obvious ones. Journo didn’t misrepresent what you wrote, he was just giving you examples of other drivers who have had chances at RCR and couldn’t get it done. The difficult thing about picking drivers is it isn’t a plug-and-play game. Look at Kurt Busch.
on Jan 20th, 2009 at 11:49 pm
Max Siegel sucked
on Jan 21st, 2009 at 9:29 am
TC, Journo
DEI’s demise started the moment Dale Sr died. He was the “key man” whose absence caused the slide. I have the greatest sympathy for Teresa Earnhardt and couldn’t imagine how hard it was for her to continue. But hiring Siegel was not the greatest idea.
If things had been different, the corporate partners with DEI would have survived Dale Jr’s departure. Max Siegel, if he had been the right man for the job, would have institutionalized the sponsorships like Childress has, like HMS has, like Gibbs has.
DEI expanded for the sake of expansion. Compare this to JGR, where, I believe, they’ve chosen not to add a 4th team until one of their very short list of drivers becomes available.
You guys infer from my comments that I somehow think Burton,Harvick,Bowers, and Martin are second-class drivers. This is far from the truth. But if you don’t believe they could have been replaced by Kenseth,Biffle Kurt Busch etc and we’d have seen similar results, well we just have to disagree.
As far as why Martin was hired at HMS, you have a unique set of circumstances where the owner is in a prospective win-win situation. He has a goal of winning a Championship with Dale Jr, and brings in a great guy/great driver who should have already won one for his last,best chance, knowing his great work ethic and mentoring skills are going to pay dividends.
on Feb 25th, 2009 at 2:07 pm
You can blame max for a problem that could not be fix and it was like saying max can you stop up that whole in the titantic. I sure if max could have don’t want he wanted he probably could have save the company but when you have to approval before you do something then why try.
JUst think having dale junior,bud,army,navy and sony,add,wrangler and so other company just think what make could have done and then also have mark martin and marnard there it would have been great but the “stuckup snob” wanted to run the company in the ground