When Jerry Jones took over the Dallas Cowboys in 1989, the team was facing financial strife, losing a significant amount of money each month. Jones, an oilman, borrowed heavily to purchase the team and was faced with the challenge of turning the franchise around. Despite the initial obstacles, Jones managed to transform the Cowboys into the most valuable team in the NFL, worth a staggering $11 billion in 2024. By generating $1.2 billion in revenue in 2023 and posting an EBITDA of $550 million, the Cowboys stand out as a beacon of success in the league.
Jones wasted no time implementing changes to set the Cowboys on a path to profitability. He immediately fired the legendary coach Tom Landry and brought in Jimmy Johnson, a move that raised eyebrows but ultimately paid off with multiple Super Bowl wins in the early 1990s. Furthermore, Jones orchestrated a groundbreaking trade involving Herschel Walker that resulted in acquiring key players like Emmitt Smith and Darren Woodson. These bold moves redefined the team and established new standards for ownership in the NFL.
Jones’ innovation extended beyond the field to the business side of the Cowboys. Recognizing the revenue potential of stadium sponsorship deals, Jones secured lucrative agreements with brands like American Express, Pepsi, and Nike, setting a precedent for team owners across the league. The value of sponsorship deals for the Cowboys has continued to grow, with the franchise projected to reach $250 million in sponsorship revenue this year, outpacing all other teams by a significant margin.
Jones’ ability to leverage strategic partnerships and revenue streams has been instrumental in the financial success of the Cowboys. The team’s move to AT&T Stadium in 2009 marked a significant milestone, with Jones securing a long-term naming rights deal worth approximately $20 million annually. By extending partnerships with brands like Molson Coors, Jones has ensured a steady stream of revenue for the franchise. Additionally, his operating rights at AT&T Stadium allow him to benefit from event revenue, further bolstering the team’s financial position.
Beyond football, Jones has diversified the revenue streams for the Cowboys by hosting a variety of events at AT&T Stadium. From Monster Jam to professional boxing matches and college football championships, the stadium remains a hub of activity throughout the year. These events not only attract diverse audiences but also contribute significantly to Jones’ bottom line, as he retains full control over the revenue generated, without having to share it with other team owners.
While Jones has faced criticism for the Cowboys’ failure to return to the Super Bowl in recent years, there is no denying his impact on transforming the economic landscape of NFL teams. The Cowboys’ meteoric rise in value, from $150 million in 1989 to $11 billion in 2024, underscores Jones’ unparalleled business acumen. Compared to the S&P 500’s 18-fold increase during the same period, the Cowboys’ 73-fold growth is a testament to Jones’ visionary leadership and economic blueprint for success in professional sports ownership.
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