DaRon Bland, #26 of the Dallas Cowboys, celebrates after an interception returned for a touchdown in the game against the Washington Commanders during the fourth quarter at AT&T Stadium in Arlington, Texas on November 23, 2023.
Ron Jenkins | Getty Images
When Jerry Jones shelled out $150 million to buy the Dallas Cowboys in 1989, the team was losing $1 million a month, according to Jones.
There were plenty of empty seats and boxes at Texas Stadium back then. The oilman had borrowed every penny he could to buy the Cowboys, so he had to act quickly, both on and off the field, to make the team profitable.
And he did.
Thirty-five years later, the Cowboys are worth a staggering $11 billion, $3 billion more than any other National Football League team, according to CNBC's official 2024 NFL team valuations revealed Thursday.
The Cowboys generated $1.2 billion in revenue in 2023, nearly $400 million more than the Los Angeles Rams, who ranked second in the league in revenue, according to CNBC’s ranking. The Cowboys are the most profitable in the NFL, with EBITDA of $550 million last season, $300 million more than the New England Patriots, the second-most profitable team in the NFL, according to CNBC’s list.
On the road to profit, Jones made a series of bold moves that set new standards for league ownership and generated a massive return on his investment.
When Jones took over in 1989, he immediately fired legendary coach Tom Landry and hired his former teammate from his college football days at Arkansas, Jimmy Johnson. In 1989, Jones traded his best player, Herschel Walker, in a deal that allowed the Cowboys to get four players and several draft picks that would lead to players such as Emmitt Smith and Darren Woodson.
In 1992, the Cowboys won the Super Bowl. The team won again in 1993 and then in 1995 with Barry Switzer as coach.
Jones was also quick to innovate off the field. He knew that while revenue from NFL sponsorship deals was split evenly among the teams, he could keep all the money from stadium sponsorships. Jones became the first NFL owner to secure his own sponsorship deals at Texas Stadium, the former home of the Cowboys, in 1995.
He focused on brands like American Express and Pepsi to be sponsors of the stadium —at that time, their respective rivals— Visa and Coca-cola He had agreements with the NFL. He also pursued Nikewho did not have a deal with NFL Properties, the league's licensing division. In 1995, Jones signed a 10-year, $40 million contract with Pepsi-Cola and a 10-year, $2.5 million-a-year deal with Nike.
Sponsorship deals have been a boon for the Cowboys. This year, the franchise could reach $250 million in sponsorship revenue, at least $50 million more than any other team, according to people familiar with team finances.
The value of the Cowboys' sponsorship deals has skyrocketed over the years. The Cowboys moved into their new stadium in 2009. In 2013, the building was renamed. AT&T Stadium when Jones signed a long-term contract worth approximately $20 million per year. By 2021, Jones had announced a 10-year, $200 million extension of a deal with Molson Coors alcoholic beverages.
The Dallas Cowboys defense celebrates in the end zone after cornerback DaRon Bland, #26, caught an interception during a game against the Seattle Seahawks at AT&T Stadium in Arlington, Texas on November 30, 2023.
Ryan Kang | Getty Images
The city of Arlington owns AT&T Stadium, but Jones has the operating rights, meaning he receives revenue from events. The more crowded it is, the more money he makes. Jones also has the right to buy AT&T Stadium for just $10 at any time until the Cowboys’ lease expires in 2039, according to a person familiar with the team’s agreement with the city.
And although the Cowboys haven't been to the Super Bowl in 29 years, they are a team that periodically makes the playoffs, and the seats and suites are almost always full.
Even outside of football, the stadium is rarely empty. This year, Jones will host Monster Jam; a professional boxing match with Mike Tyson; the Big 12 college football championship game; high school football; and the Professional Bull Riders. As with stadium sponsorships, Jones doesn’t have to share any of this money with the league’s 31 other owners.
Jones, who is also the Cowboys' general manager, gets plenty of criticism for not being back to the Super Bowl since 1995. But there's no question he created the economic model for an NFL team. The Cowboys, at $11 billion, have increased 73 times the price Jones paid for the team to date, versus just an 18-fold increase in the market price. S&P 500 Index During the same period.
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