When Jerry Jones purchased the Dallas Cowboys in 1989 for $150 million, he was met with a struggling team that was losing $1 million a month. However, instead of being deterred by the financial challenges, Jones saw an opportunity to turn things around both on and off the field. Despite having borrowed every penny to acquire the team, Jones made bold and strategic moves that ultimately led to the Cowboys becoming the most valuable franchise in the NFL.
One of the key aspects of Jones’s success was his ability to think outside the box and innovate quickly. By immediately firing the legendary coach, Tom Landry, and bringing in his college football teammate, Jimmy Johnson, Jones set the tone for a new era of leadership. In 1989, Jones orchestrated a controversial trade that sent Herschel Walker packing but landed the Cowboys key players and draft picks that would shape the team’s future success. These decisions set a new standard for league ownership and cemented Jones’s reputation as a savvy businessman.
Jones’s innovative spirit extended beyond the football field and into the realm of business partnerships. Recognizing the potential for revenue from stadium sponsorships, Jones secured deals with major brands such as American Express, Pepsi, and Nike. By capitalizing on these sponsorships and keeping all stadium sponsorship money for the Cowboys, Jones significantly boosted the team’s revenue. These partnerships have continued to be a lucrative source of income for the franchise, with sponsorship revenue projected to reach $250 million this year.
In addition to securing profitable sponsorship deals, Jones obtained the operating rights for the Cowboys’ stadium, AT&T Stadium. This arrangement allows him to retain revenue from events held at the venue, further increasing the team’s profitability. Moreover, Jones has the option to purchase the stadium for a mere $10 at any point until the Cowboys’ lease expires in 2039, providing him with long-term financial security and control over the team’s facilities.
Despite criticism for not winning a Super Bowl since 1995, Jerry Jones’s impact on the NFL cannot be overlooked. His strategic business acumen and bold decision-making have transformed the Cowboys into a powerhouse franchise valued at $11 billion. This incredible growth represents a 73-fold increase from the team’s purchase price in 1989, showcasing Jones’s ability to create an economic blueprint for success in the world of professional sports.
Jerry Jones’s journey with the Dallas Cowboys serves as a testament to the power of strategic business decisions and innovation in the sports industry. By taking risks, forging lucrative partnerships, and maintaining financial control, Jones has positioned the Cowboys as a global brand and economic powerhouse. His story offers valuable lessons for aspiring entrepreneurs and team owners looking to emulate his success in the NFL and beyond.