I'm sure most people have probably heard about this, but here is the rundown from Jayski:

DEI to buy RYR? UPDATE 4: It was reported on SPEED's NASCAR Raceday that Dale Earnhardt Inc (DEI) is interested in buying Robert Yates Racing (RYR) and RYR is interested in joining forces with DEI. It was also reported that the teams would end up being in the Chevy camp.(4-29-2007)

UPDATE: In attempts to strengthen its teams and expand to four cars, Dale Earnhardt Inc. [#'s 1,8,15] has had preliminary discussions with Robert Yates Racing [#38, #88] about a partnership, as well as Ford Motor Company and another manufacturer, DEI executive team member John Story confirmed Sunday morning. While the company also is in the midst of contract negotiations with NASCAR's most popular driver, Dale Earnhardt Jr., DEI is working toward trying to solidify its future. That means getting the finances and the technological support it needs from a manufacturer and working toward fielding a fourth team by 2008 or 2009, said Story, who oversees sales, marketing and communications activities at DEI. What would be more startling would be the potential move to Ford or another manufacturer considering Chevrolet's long relationship with team founder Dale Earnhardt. The Chevrolet deal is not contingent on Earnhardt Jr. remaining at DEI, Story said. Yates said his team would remain Ford. Story said that talks with Yates could continue even if DEI remains with Chevrolet.(in part from SceneDaily.com)(4-29-2007)

UPDATE 2: With Robert Yates Racing and Dale Earnhardt, Inc. discussing a potential merger, how would that affect Yates-Roush Engines, which makes the motors that power all of the Ford NASCAR Nextel Cup teams? RYR co-owner Doug Yates was adamant that his team will not switch to Chevrolet power no matter what, and Roush Fenway Racing President Geoff Smith said he hopes any deal will build up the Ford NASCAR Nextel Cup effort. Were aware that hes marketing his teams, Smith said of Robert Yates prior to Sundays Talladega race. We have a joint engine business thats affected by the number of customers that we have. We want to see the Ford number of teams remain at least at its current level for the benefit of the engine business and for the competitive benefit for Ford Motor Co.(SPEEDtv.com)(4-30-2007)

UPDATE 3: Dale Earnhardt, Inc., [DEI] will move to four Nextel Cup Series teams by 2009, be it through the acquisition of another team or the addition of a fourth team in-house, team executive John Story said Sunday at Talladega Superspeedway. Story said DEI has been in discussions with Robert Yates Racing for four-to-six weeks about a partnership, but cautioned that those talks are preliminary and that no documentation has been exchanged between the teams. If DEI were to acquire Yates, one of the two teams would have to forsake its manufacturer. Yates, a Ford flagship team for nearly two decades, would move to Chevrolet; or DEI, whose founder, Dale Earnhardt, won seven championships in Chevrolets, would move to Ford. "The only proposal we have right now for a manufacturer next year is from Chevrolet," Story said. "Teresa [Earnhardt] has been tremendously loyal to Chevrolet for a lot of years. We've had some conversation with a couple other manufacturers. They've called to inquire what our contract situation was. We told them, in fairness, we are going to sit down and exhaust our options with Chevrolet first, and if the opportunity came up we'd talk to somebody else. We haven't seen anything in writing from anybody else." RYR president Doug Yates said they'd rather stay in Fords, and that Ford Racing officials see a DEI merger as a way to get Ford back to prominence in Nextel Cup. But he didn't rule out a manufacturer switch. How this impacts Dale Earnhardt Jr.'s contract negotiations isn't known, but Story said a deal with Ford and RYR isn't contingent on Earnhardt Jr. staying at DEI. Earnhardt Jr. wants controlling interest in DEI, but Chevrolet officials want to keep him.(ESPN.com)(4-30-2007)

UPDATE 4 Toyota denies talks: Toyotas Lee White says his company was not involved in any talks with DEI: We have not had any conversations with Dale Earnhardt Jr. There is a tremendous amount of both equity and liability involved with Dale Earnhardt Incorporated and Dale Earnhardt Jr. Chevrolet has such equity built into Dale Earnhardt Jr. and that particular race team - that equity is great for the bigger picture and the health of our sport. Right now Toyota is not ready to take on the liability that would come with that scenario.(Winston Salem Journal)(4-30-2007)


First of all I really couldnt see DEI parting ways with Chevy. Chevy has too much at stake here. There's no way they would want to part with Dale Jr. If this was happening maybe 10 years ago, when RYR was at its peak, sure I could see it. But with Ricky Rudd and David Gilliland as its lone drivers.... they are not exactly a powerhouse. Mark my words, no way will DEI switch to Fords.

Does buying RYR really help DEI? Sure, there's some extra resources with the Yates engines but thats about it. NASCAR is limiting teams to 4 drivers. Currently between the two teams there are 5 drivers, so someone would have to go. My guess is that would be Ricky Rudd since he's in an out of retirement anyway. However, David Gilliland as a DEI driver? He's shown that he can drive on plate tracks, but that's about it really.

How does this affect the Jr. contract talks? Tough to say really.

What I really think DEI needs to do is give Jr. his contract and put in a 4th driver from their own camp. Jr. Motorsports has a number of up and coming drivers, maybe one of them. It will take a number of years, but I think DEI could grow into a Hendrick or Roush type of team.

They also need to move to a new location since they have outgrown their space there. If they are tight with 3 teams, what's a 4th team gonna do?