NFL’s most valuable team at $11 billion | Real Time Headlines

When Jerry Jones spent $150 million to buy dallas cowboys In 1989, the team was losing $1 million a month, Jones said.

At the time, Texas Stadium had plenty of available seats and suites. The oilman has borrowed every nickel he can to buy the Cowboys, so he’ll have to move quickly — both on and off the field — to make the team profitable.

He did it.

According to statistics, 35 years later, the Cowboys are worth a staggering $11 billion, $3 billion more than any other team in the National Football League. CNBC’s official 2024 NFL team valuations Revealed Thursday.

According to CNBC’s rankings, the Cowboys will generate $1.2 billion in revenue in 2023, nearly $400 million more than the Los Angeles Rams, which ranks second in the league in revenue. The Cowboys are the most profitable team in the NFL, with EBITDA of $550 million last season, $300 million more than any other NFL team. new england patriotsThe second most profitable NFL team, according to CNBC’s list.

On the road to profitability, Jones made a series of bold moves that set a new standard for league ownership and delivered a huge return on his investment.

When Jones took over in 1989, he immediately fired legendary coach Tom Landry and hired Jimmy Johnson, his former teammate on the Arkansas college football team. In 1989, Jones traded his best player, Herschel Walker, to the Cowboys for four players and several draft picks, including players like Emmitt Smith and Darren Woodson.

In 1992, the Cowboys won the Super Bowl. The team won again in 1993 and again in 1995 under Barry Switzer.

Jones was also quick to innovate off the field. He knew that while revenue from his sponsorship deal with the NFL was divided equally among the teams, he would get to keep all the stadium sponsorship money. In 1995, Jones became the first NFL owner to secure a sponsorship deal at Texas Stadium, the Cowboys’ former home.

Brands he targets include American Express and Pepsi Became a stadium sponsor – their respective competitors at the time visa and Coca Cola Has a deal with the NFL. He also chased Nikethe company does not have any agreement with NFL Properties, the league’s licensing arm. In 1995, Jones signed a 10-year, $40 million contract with PepsiCo and a 10-year, $2.5 million-per-year contract with Nike.

The sponsorship deal is a huge boon for the Cowboys. According to people familiar with the team’s finances, the team’s sponsorship revenue may reach $250 million this year, which is at least $50 million more than other teams.

The Cowboys’ sponsorship deal has ballooned in value over the years. The Cowboys moved into the new stadium in 2009. AT&T Jones signed a long-term deal at the stadium worth about $20 million per year. In 2021, Jones announced a partnership with Molson Coors.

The city of Arlington owns AT&T Stadium, but Jones owns the operating rights, which means he gets revenue from the event. The busier he is, the more money he makes. Jones also has the option to purchase AT&T Stadium for $10 at any time until the Cowboys’ lease expires in 2039, according to a person familiar with the Cowboys’ agreement with the city.

Even though the Cowboys haven’t been to a Super Bowl in 29 years, they are a perennial playoff team with seats and suites almost always full.

Even outside of football, stadiums are rarely empty. This year, Jones will host Monster Jam; a professional boxing match with Mike Tyson; a Big 12 college football championship; high school football; and a professional matador. As with stadium sponsorships, Jones doesn’t have to share the money with the league’s other 31 owners.

Jones, who was the Cowboys’ general manager, received a lot of criticism for not returning to the Super Bowl since 1995. The Cowboys are worth $11 billion, a 73-fold increase from what Jones paid for the team, which at the time was only an 18-fold increase. S&P 500 Index within the same period.