The Dallas Cowboys: A $11 Billion Empire Built on Bold Moves
Jerry Jones’s $150 million gamble on the struggling Dallas Cowboys in 1989 has paid off in a way few could have imagined. Today, the Cowboys are valued at a staggering $11 billion, making them the most valuable team in the National Football League (NFL), according to CNBC’s Official 2024 NFL Team Valuations. Jones’s willingness to make bold moves both on and off the field has transformed the Cowboys into a financial powerhouse, generating $1.2 billion in revenue in 2023.
Key Takeaways:
- The Dallas Cowboys are worth a record-breaking $11 billion, a testament to Jerry Jones’s shrewd business strategies.
- Jones’s innovative approach to sponsorship deals and stadium management has driven the Cowboys’ financial success.
- The Cowboys’ revenue far surpasses any other NFL team, with a staggering $1.2 billion generated in 2023.
- Jones’s bold decisions, like firing legendary coach Tom Landry and trading star Herschel Walker, ultimately led to Super Bowl victories and solidified the Cowboys’ legacy.
From Bankruptcy to Billion-Dollar Empire
When Jones took over the Cowboys in 1989, the team was beset by financial woes and a lackluster performance on the field. He immediately made a series of bold decisions that would forever change the Cowboys’ trajectory.
A New Era on the Field
Jones’s first significant move was to fire the legendary Tom Landry, who had coached the Cowboys for 29 years. He replaced him with Jimmy Johnson, a former teammate from his college football days at Arkansas. This decision shocked the NFL and sparked intense debate, but it ultimately paid off.
Jones then made another controversial move: trading Herschel Walker, the team’s star running back, in a deal that brought in four players and several draft picks. This trade was widely criticized at the time, but it ended up being a key move in building the foundation for the Cowboys’ future success. These picks would eventually yield stars like Emmitt Smith and Darren Woodson, who played instrumental roles in the Cowboys’ three Super Bowl victories in the 1990s.
Off the Field Innovations
Jones’s business acumen proved just as impactful as his decisions on the field. He quickly recognized the potential for generating revenue outside the league’s traditional revenue sharing model.
Stadium Sponsorships and Revenue Generation
Jones understood that stadium sponsorships could be a gold mine for a team like the Cowboys, with a massive, loyal fan base in Texas. He become the first NFL owner to secure his own stadium sponsorship deals, striking deals with major brands like American Express, Pepsi, Visa, Coca-Cola, and Nike. These deals generated significant revenue that the other NFL teams did not share.
From Texas Stadium to AT&T Stadium
In 2009, the Cowboys moved into their new stadium, which Jones helped build and manage. The team secured a lucrative naming rights deal with AT&T in 2013, bringing in roughly $20 million per year. Jones also has the right to purchase the stadium for a mere $10 at any point before the lease expires in 2039.
A Multi-Purpose Venue
The Cowboys’ stadium isn’t just for football; it hosts a variety of events throughout the year, increasing its usage and profitability. Jones hosts events ranging from Monster Jam to professional boxing matches with Mike Tyson, the Big 12 college football championship game and high school football games. These events generate significant revenue for the Cowboys, further solidifying the team’s financial dominance in the NFL.
A Paradigm Shift in NFL Ownership
Jerry Jones’s approach to NFL ownership has fundamentally changed the industry. While other teams have benefitted from the league’s increasing revenue streams, few have matched the Cowboys’ financial success.
The Cowboys’ Financial Dominance
Jones’s commitment to building a brand that transcends the field has made the Cowboys a global phenomenon. This approach has enabled the Cowboys to generate revenue in unconventional ways, creating a business model that other teams are now emulating.
Jones’s legacy will be debated for years to come. He has faced criticism for his coaching decisions and for the Cowboys’ inability to reach the Super Bowl since 1995. But there’s no denying that he has built a financial empire fueled by bold decisions and innovative strategies. His legacy is one of extraordinary business acumen, proving that football is more than just a game; it’s a lucrative business, and Jerry Jones is its most successful player.
