Jerry Jones' Cowboys: A Billion-Dollar NFL Empire

Jerry Jones, owner of the Dallas Cowboys, purchased the team in 1989 for $150 million. At the time, the Cowboys were losing $1 million each month and had plenty of empty seats at Texas Stadium. Jones' bold moves, both on and off the field, transformed the Cowboys into a profitable and valuable team.

• He fired legendary coach Tom Landry and hired his college teammate, Jimmy Johnson.
• He traded Herschel Walker for multiple draft picks that resulted in players like Emmitt Smith and Darren Woodson.
• The Cowboys won Super Bowls in 1992, 1993, and 1995.

NFL Team Valuations and the Dallas Cowboys' Rise

The Cowboys are now worth $11 billion, making them the most valuable team in the NFL. This surpasses the previous record holder by a significant margin, with the Cowboys valued at $3 billion more than the next highest team.

• The Cowboys generated $1.2 billion in revenue in 2023, almost $400 million more than the second-highest revenue generator in the NFL.
• The Cowboys are also the most profitable NFL team, with EBITDA of $550 million last season.

The Cowboys' Strategic Off-Field Investments

Jerry Jones' strategic off-field investments played a crucial role in the Cowboys' rise to financial dominance. Jones understood the potential for stadium sponsorships and secured lucrative deals with brands like American Express, Pepsi, Nike, and AT&T.

• The Cowboys were the first NFL team to secure stadium sponsorships, generating substantial revenue beyond the league-shared sponsorship deals.
• They moved into their new stadium, AT&T Stadium, in 2009, further increasing revenue opportunities.

AT&T Stadium: A Revenue Generating Machine

AT&T Stadium, owned by the city of Arlington, is operated by the Cowboys. Jerry Jones has exclusive rights to the stadium, which is a lucrative asset. The Cowboys have the right to purchase the stadium for $10 at any time until their lease expires in 2039.

• Jones utilizes the stadium for various events beyond NFL games, including Monster Jam, professional boxing matches, and college football championships.
• The stadium's consistent use generates significant revenue for the Cowboys.

NFL Sponsorship Deals and Their Impact

The Cowboys' sponsorship deals have become increasingly valuable over time, reflecting the team's popularity and profitability. The team's partnership with AT&T alone brings in an estimated $20 million annually.

• In 2021, Jones extended a deal with Molson Coors for 10 years at $200 million.
• The Cowboys are expected to generate over $250 million in sponsorship revenue this year.

The Cowboys' Impact on NFL Economics

Jerry Jones' innovations and strategies have set new standards for NFL ownership and demonstrated the potential for massive returns on investment. While the Cowboys haven't reached the Super Bowl in over 29 years, they remain a financially successful and valuable franchise.

• The Cowboys' value has increased 73-fold since Jones purchased the team, while the S&P 500 has only increased 18-fold during the same period.
• The Cowboys' success underscores the importance of strategic management, both on and off the field, in building an NFL team into a profitable and valuable asset.

NFL Team Valuations: The Cowboys Lead the Way

Jerry Jones and the Dallas Cowboys have set a new benchmark for NFL team valuations, demonstrating how shrewd management and innovative marketing can lead to remarkable financial success.

• The Cowboys' success in generating revenue and profits serves as a model for other NFL teams.
• The team's strong brand, loyal fanbase, and strategic investments have positioned them as a leader in the NFL's financial landscape.

The Future of the Dallas Cowboys

The Cowboys' dominance in the NFL's financial realm is a testament to Jerry Jones' vision and execution. While their on-field success has fluctuated, their off-field success is undeniable. The Cowboys have become a model for other NFL teams and stand as a testament to the power of strategic planning and a deep understanding of the sport's business side.