How Jerry Jones Made the Dallas Cowboys the Most Valuable Team in the NFL
Introduction:
When Jerry Jones purchased the Dallas Cowboys in 1989, the team was in dire financial straits, losing $1 million a month. However, through a series of bold moves and innovative strategies, Jones turned the franchise into the most valuable team in the National Football League (NFL). This article explores the key factors that contributed to the Cowboys’ success, including shrewd player trades, lucrative sponsorship deals, and ownership of their stadium.
Building a Winning Team:
Upon taking over the Cowboys, Jones wasted no time making significant changes. He fired legendary coach Tom Landry and brought in Jimmy Johnson, his former college football teammate. In 1989, Jones orchestrated a trade that sent Herschel Walker, the team’s best player, to the Minnesota Vikings, yielding four players and several draft picks. This move ultimately led to the acquisition of star players like Emmitt Smith and Darren Woodson. Under Johnson’s leadership, the Cowboys won the Super Bowl in 1992, 1993, and 1995, solidifying their dominance on the field.
Innovative Off-Field Strategies:
Jones demonstrated his business acumen by pioneering new approaches off the field. He recognized that while NFL sponsorship deals were evenly distributed among teams, stadium sponsorship money could be retained by individual owners. In 1995, Jones became the first NFL owner to secure his own sponsorship deals, targeting brands like American Express, Pepsi, and Nike. These partnerships proved highly lucrative, with the Cowboys projected to generate $250 million in sponsorship revenue this year, surpassing all other teams by at least $50 million.
Stadium Ownership and Revenue:
Jones’s ownership of AT&T Stadium, the Cowboys’ home, further solidified the team’s financial success. Although the city of Arlington technically owns the stadium, Jones has operating rights, entitling him to the revenue from events held there. This arrangement incentivizes Jones to keep the stadium busy, leading to increased profitability. Additionally, Jones has the option to purchase AT&T Stadium for a mere $10 at any point until the team’s lease expires in 2039. Such control over the stadium and its revenue stream has been a significant contributor to the Cowboys’ financial prosperity.
Consistent Success and Full Attendance:
Despite not reaching the Super Bowl in nearly three decades, the Cowboys remain a perennial playoff team with consistently high attendance rates. The team’s sustained success, combined with the allure of their state-of-the-art stadium, ensures that seats and suites are almost always filled. Furthermore, AT&T Stadium hosts a diverse range of events throughout the year, from Monster Jam and boxing matches to college football championships and high school games. Jones’s ability to keep the stadium occupied allows him to retain all the revenue generated from these non-football events, providing an additional source of income.
Jerry Jones’s Economic Blueprint:
While Jones faces criticism for the Cowboys’ lack of Super Bowl appearances in recent years, his impact on the franchise cannot be overstated. Under his ownership, the team’s value has skyrocketed from the $150 million he initially paid to a staggering $11 billion. In comparison, the S&P 500 has only experienced an 18-fold increase during the same period. Jones’s ability to navigate the business side of the NFL and maximize revenue streams has set the standard for league ownership and serves as a blueprint for other teams aspiring to financial success.
Conclusion:
Jerry Jones’s transformative ownership of the Dallas Cowboys exemplifies the power of astute decision-making and innovative strategies. From bold player trades to securing lucrative sponsorship deals and owning their stadium, Jones has propelled the Cowboys to become the most valuable team in the NFL. Despite the team’s Super Bowl drought, their consistent success and strong attendance rates, coupled with Jones’s savvy business acumen, have cemented the Cowboys’ status as a financial powerhouse in the world of professional sports.
