When Jerry Jones made the bold decision to purchase the Dallas Cowboys in 1989 for $150 million, he faced significant financial challenges. The team was losing $1 million a month, and Texas Stadium had plenty of empty seats and suites. Jones, an oilman who had borrowed extensively to acquire the Cowboys, knew he had to act quickly to turn the team’s fortunes around. He wasted no time and took decisive action both on and off the field to make the franchise profitable.
Jones wasted no time making significant changes upon taking over the Cowboys. He immediately fired the legendary coach Tom Landry and brought in his former college football teammate, Jimmy Johnson, to lead the team. One of Jones’ most controversial moves was trading his best player, Herschel Walker, in exchange for four players and multiple draft picks. This trade ultimately led to the acquisition of key players like Emmitt Smith and Darren Woodson, who played crucial roles in the Cowboys’ success in the early 1990s.
Under Jerry Jones’ ownership, the Dallas Cowboys have experienced tremendous revenue growth and unparalleled profitability within the NFL. In 2023, the Cowboys generated $1.2 billion in revenue, making them the highest-earning team in the league. Their earnings were nearly $400 million more than the second-highest revenue-generating team, the Los Angeles Rams. In terms of profitability, the Cowboys posted an impressive EBITDA of $550 million, far surpassing other NFL teams like the New England Patriots.
Jones’ innovative strategies off the field played a significant role in the Cowboys’ financial success. Recognizing the potential of securing stadium sponsorship deals, Jones became the first NFL owner to negotiate exclusive sponsorship agreements for Texas Stadium. By partnering with brands like American Express, Pepsi, and Nike, Jones maximized the team’s sponsorship revenue. These deals have continued to grow over the years, contributing significantly to the Cowboys’ overall financial prosperity.
In 2009, the Cowboys moved into their state-of-the-art stadium, which was later renamed AT&T Stadium in a lucrative sponsorship deal with the telecommunications giant. Jerry Jones holds the operating rights to the stadium, allowing him to keep the revenue from various events hosted at the venue. The stadium has become a bustling hub for not only Cowboys games but also a diverse range of events like Monster Jam, professional boxing matches, college football championships, and high school football games.
One of the key advantages of owning and operating AT&T Stadium is that Jerry Jones retains full control over the revenue generated from events held at the venue. Unlike revenue from sponsorship deals, which must be shared among NFL teams, the income from stadium events goes directly to Jones. This autonomy has been a significant factor in the Cowboys’ financial success and has allowed Jones to reinvest in the team’s growth and development.
Despite the Dallas Cowboys’ prolonged absence from the Super Bowl since 1995, Jerry Jones’ economic blueprint for the team has set a new standard for NFL ownership. The franchise’s value has soared to $11 billion, a remarkable increase from the $150 million Jones paid for the team in 1989. While Jones faces criticism for the team’s on-field performance, there is no denying his unmatched success in building a financially prosperous and sustainable NFL franchise.
Jerry Jones’ ownership of the Dallas Cowboys represents a remarkable economic success story within the realm of professional sports. Through savvy business acumen, innovative sponsorship strategies, and strategic stadium ownership, Jones has transformed the Cowboys into the most valuable and profitable team in the NFL. Despite challenges and criticisms, Jones’ legacy as a pioneering owner in the league remains unparalleled.