Cowboys now worth 15.5 billion

[Kwyn]

IMO, this is Tex, Gil and Tom's greatest legacy. They created a national treasure that is absolutely teflon to failure. Lose for 30 years and you're still the show. In fact you're stronger than ever. It's the damnedest thing I've ever seen in sports.

Jerry bought into it. Jimmy certainly added to it but it was those three men that created it.

I disagree

If Jerry had bought the giants, skins or eagles in 1989, those teams would be worth $15.5b. Thats a near certainty.

These valuations aren’t based on logos, slogans or even winning, although all that helps. They are based on a team’s value. and their ability to make money.

It’s the mechanism.
It’s the backend business practices.
It’s the machine.

It’s Jerry’s business model that broke the entire nfl team ownership model, not the 1970s branding.

The team was a financial disaster when it was sold. They were in foreclosure and headed for bankruptcy.

The thing that makes the cowboys as valuable as they are essentially comes down to Jerry rewriting how revenue works.

He signed his own sponsorships, got sued by the NFL, counter sued, and the league caved.

That’s the moment the valuation shifted and the gap between the cowboys and the rest of the league took place.

Next thing you know he bails on the single merchandising agreement that bound teams together. There are now two merchandising agreements in the NFL

Cowboys - $200m/yr
The other 31 - $25m each

Then there’s “local sponsorships” which is naming rights to properties, tv/radio stuff, products sold at properties, etc

Cowboys: $300m/yr
Rams (#2): $120m

All of that is Jerry. Those concepts didn’t even exist until he came into the league.

Those are the only stats that matter in the world of finance.

He destroyed the entire concept of the league controlling the teams money, that stadiums were just for playing football, that winning is all that matters.

The Rooneys and the Maras hated him because what they had built was safe and secure and what Jerry was building was crazy and dangerous.

He’s obviously proved them wrong

 

[mrmojo]

YES! Were still #1....snake oil is still in demand.....

 

[Frosty]

Twice as profitable as any other team in the league.

I will take this over any Super Bowl.

Thats what Jerry says to

 

[Cowboys5217]

IMO, this is Tex, Gil and Tom's greatest legacy. They created a national treasure that is absolutely teflon to failure. Lose for 30 years and you're still the show. In fact you're stronger than ever. It's the damnedest thing I've ever seen in sports.

Jerry bought into it. Jimmy certainly added to it but it was those three men that created it.

That's why I don't credit Jerry for the Forbes ranking or being some kind of financial genius. The Cowboys would be worth a couple billion more without Jerry by winning a SB once or twice the last 30 years.

Quite frankly, Jerry is losing money from where the Cowboys would be without that idiot holding them hostage to his ego.

 

[Cowboys5217]

I disagree

If Jerry had bought the giants, skins or eagles in 1989, those teams would be worth $15.5b. Thats a near certainty.

These valuations aren’t based on logos, slogans or even winning, although all that helps. They are based on a team’s value. and their ability to make money.

It’s the mechanism.
It’s the backend business practices.
It’s the machine.

It’s Jerry’s business model that broke the entire nfl team ownership model, not the 1970s branding.

The team was a financial disaster when it was sold. They were in foreclosure and headed for bankruptcy.

The thing that makes the cowboys as valuable as they are essentially comes down to Jerry rewriting how revenue works.

He signed his own sponsorships, got sued by the NFL, counter sued, and the league caved.

That’s the moment the valuation shifted and the gap between the cowboys and the rest of the league took place.

Next thing you know he bails on the single merchandising agreement that bound teams together. There are now two merchandising agreements in the NFL

Cowboys - $200m/yr
The other 31 - $25m each

Then there’s “local sponsorships” which is naming rights to properties, tv/radio stuff, products sold at properties, etc

Cowboys: $300m/yr
Rams (#2): $120m

All of that is Jerry. Those concepts didn’t even exist until he came into the league.

Those are the only stats that matter in the world of finance.

He destroyed the entire concept of the league controlling the teams money, that stadiums were just for playing football, that winning is all that matters.

The Rooneys and the Maras hated him because what they had built was safe and secure and what Jerry was building was crazy and dangerous.

He’s obviously proved them wrong

No way in hell those teams are worth what the Cowboys are worth if Jerry bought them instead.

 

[Vinnie2u]

Where did you come up with needing 4.65 billion in pure cash?

I read where a buyer needs 82% in equity of purchase price.

Making it more difficult is the requirement that the head investor taking part in the purchase is responsible for personally allocating 30% of the capital. To put this rule into perspective, the lowest valued team in the NFL is the Cincinnati Bengals at $5.25 billion. This means that a lead investor would need to invest at least $1.575 B

https://sites.lsa.umich.edu/mje/2024/10/26/theres-a-new-player-in-the-nfl-private-equity/

From another article.
The 30% Principal Rule: The NFL mandates that the primary, controlling owner must personally hold at least a 30% equity stake in the franchise.At the team's current $15.5 billion valuation, 30% equals exactly $4.65 billion.This amount cannot be borrowed; it must be the buyer's own personal cash or liquid assets.

 

[Kwyn]

No way in hell those teams are worth what the Cowboys are worth if Jerry bought them instead.

You would be wrong. That’s either anti-Jerry bias (which i recognize cause I hate him) or a bit of love of the laundry.

 

[Diehardblues]

I disagree

If Jerry had bought the giants, skins or eagles in 1989, those teams would be worth $15.5b. Thats a near certainty.

These valuations aren’t based on logos, slogans or even winning, although all that helps. They are based on a team’s value. and their ability to make money.

It’s the mechanism.
It’s the backend business practices.
It’s the machine.

It’s Jerry’s business model that broke the entire nfl team ownership model, not the 1970s branding.

The team was a financial disaster when it was sold. They were in foreclosure and headed for bankruptcy.

The thing that makes the cowboys as valuable as they are essentially comes down to Jerry rewriting how revenue works.

He signed his own sponsorships, got sued by the NFL, counter sued, and the league caved.

That’s the moment the valuation shifted and the gap between the cowboys and the rest of the league took place.

Next thing you know he bails on the single merchandising agreement that bound teams together. There are now two merchandising agreements in the NFL

Cowboys - $200m/yr
The other 31 - $25m each

Then there’s “local sponsorships” which is naming rights to properties, tv/radio stuff, products sold at properties, etc

Cowboys: $300m/yr
Rams (#2): $120m

All of that is Jerry. Those concepts didn’t even exist until he came into the league.

Those are the only stats that matter in the world of finance.

He destroyed the entire concept of the league controlling the teams money, that stadiums were just for playing football, that winning is all that matters.

The Rooneys and the Maras hated him because what they had built was safe and secure and what Jerry was building was crazy and dangerous.

He’s obviously proved them wrong

While I’d agree with most of your statement here about the impacts Jethro has made with the Cowboys and NFL is one small comment which isn’t totally accurate about the Cowboys.

Bum Bright was in personal bankruptcy with the Savings and Loan scandal not the Cowboys and why he was having to sell.

And while the Cowboys were losing reportedly about 1 million a month that was more of a cash flow issue than facing bankruptcy due mainly to the current state of economy in Texas along with the lack success the Cowboys had been having in recent years which impacted ticket sales and revenue.

As a matter of fact the Cowboys value had continued to increase even with a current negative cash flow and decreased revenue as a result of less success on the field . Bum Bright purchased the Cowboys in 1984 for 85 million and sold in 1989 for 140 million.

 

[Diehardblues]

Making it more difficult is the requirement that the head investor taking part in the purchase is responsible for personally allocating 30% of the capital. To put this rule into perspective, the lowest valued team in the NFL is the Cincinnati Bengals at $5.25 billion. This means that a lead investor would need to invest at least $1.575 B

https://sites.lsa.umich.edu/mje/2024/10/26/theres-a-new-player-in-the-nfl-private-equity/

From another article.
The 30% Principal Rule: The NFL mandates that the primary, controlling owner must personally hold at least a 30% equity stake in the franchise.At the team's current $15.5 billion valuation, 30% equals exactly $4.65 billion.This amount cannot be borrowed; it must be the buyer's own personal cash or liquid assets.

Personal cash is the wrong terminology. The correct is equity and or liquid assets which most billionaires could easily obtain.

 

[Diehardblues]

No way in hell those teams are worth what the Cowboys are worth if Jerry bought them instead.

Probably not unless he was able to get a new stadium built which seated 90,000+ which is biggest impact for the Cowboys huge revenue differential along with stadium sponsorships.

And the fact he had that early success with Jimmy spearheaded his weight and influence on NFL

Several factors would have to coincide for the same results in another NFL city .

 

[vlad]

No, the NFL money train is in motion. It’s become the largest sports entertainment entity in the US, no longer just a football league .

Success on the field decades ago drove revenue but not any longer. And not just for the Cowboys but everyone in NFL.

I hear you I just mean that there is a measurable generational divide. I saw all this research when my brother was Head of Growth for the NBA. Something like the average NBA fan is 30c NFL fan is 45, baseball like 55 (not those exact numbers but something like that). NBA personalities and highlights are easier marketing.

One interesting thing I saw was due to the brain rot we've fed this generation they can't sit for hours for 13 minutes of actual action. Even for me, playing style aside from the 90s when I was young, I get bored. Fortunately start the game at halftime and you can fast fwd through commercials etc and catch up to be live for the end.


In any case Stephen just going to get fatter

 

[Diehardblues]

I hear you I just mean that there is a measurable generational divide. I saw all this research when my brother was Head of Growth for the NBA. Something like the average NBA fan is 30c NFL fan is 45, baseball like 55 (not those exact numbers but something like that). NBA personalities and highlights are easier marketing.

One interesting thing I saw was due to the brain rot we've fed this generation they can't sit for hours for 13 minutes of actual action. Even for me, playing style aside from the 90s when I was young, I get bored. Fortunately start the game at halftime and you can fast fwd through commercials etc and catch up to be live for the end.


In any case Stephen just going to get fatter

No doubt these younger generations attention span is limited . There’s been several impacts on their consumption and activities as a result.

 

[Kwyn]

While I’d agree with most of your statement here about the impacts Jethro has made with the Cowboys and NFL is one small comment which isn’t totally accurate about the Cowboys.

Bum Bright was in personal bankruptcy with the Savings and Loan scandal not the Cowboys and why he was having to sell.

And while the Cowboys were losing reportedly about 1 million a month that was more of a cash flow issue than facing bankruptcy due mainly to the current state of economy in Texas along with the lack success the Cowboys had been having in recent years which impacted ticket sales and revenue.

As a matter of fact the Cowboys value had continued to increase even with a current negative cash flow and decreased revenue as a result of less success on the field . Bum Bright purchased the Cowboys in 1984 for 85 million and sold in 1989 for 140 million.

The federal government had already seized 15% of the team by that point and another 40% was headed for public liquidation.

So, you’re correct that they hadn’t technically filed for bankruptcy but it was coming.

 

[vlad]

No doubt these younger generations attention span is limited . There’s been several impacts on their consumption and activities as a result.

Digital drugs are a thing, that’s for sure. Another interesting side note - none of those same kids care to get a drivers license. We were all posing as our dads to just to car out of the driveway back in the day.

Craziest Diehard is that i know ppl that had to pay their kids to get their license!! Feels like i had to pay my dad to whip my *** for existing lol

 

[Diehardblues]

The federal government had already seized 15% of the team by that point and another 40% was headed for public liquidation.

So, you’re correct that they hadn’t technically filed for bankruptcy but it was coming.

I’ve never read or heard anything to that effect. Please provide some documentation or link to support.

Otherwise you might be confused with Bum Brights personal situation.

 

[Kwyn]

I’ve never read or heard anything to that effect. Please provide some documentation or link to support.

Otherwise you might be confused with Bum Brights personal situation.

Sorry, it was 12-13%

The Dallas Cowboys, long known as 'America's Team,' now have 12 percent backing to that claim.

https://www.upi.com/Archives/1989/09/03/Government-holds-12-percent-of-Dallas-Cowboys/2764620798400/

Cowboys aren’t America’s Team anymore - US sells its share
https://www.deseret.com/1990/3/18/1...t-america-s-team-anymore-u-s-sells-its-share/

The Cowboys were in such trouble financially when Jones came to buy them that the government (FDIC) had already foreclosed on 13 percent of the team, while another 40 percent was set to be foreclosed on

https://www.espn.com/nfl/story/_/id...las-cowboys-25-moves-biggest-nfl-power-broker

 

[75boyz]

They are good at what they do. People talk talk about Jerry Jones as if he is a moron. He is anything but. What he wants isnt in line with what fans want.

Their profits skyrocketed following two years of missing the playoffs

EXACTLY. Perfectly said.
#Emphasis: And these profits come off of 2 consecutive 7 win seasons.

It makes no business sense whatsoever for a failed NFL commodity like this to generate these net gains.

It's one of the world's and life's biggest mysteries as to how such continued financial success is possible while achieving no onfield success whatsoever in 3 decades.

 

[rags747]

Making it more difficult is the requirement that the head investor taking part in the purchase is responsible for personally allocating 30% of the capital. To put this rule into perspective, the lowest valued team in the NFL is the Cincinnati Bengals at $5.25 billion. This means that a lead investor would need to invest at least $1.575 B

https://sites.lsa.umich.edu/mje/2024/10/26/theres-a-new-player-in-the-nfl-private-equity/

From another article.
The 30% Principal Rule: The NFL mandates that the primary, controlling owner must personally hold at least a 30% equity stake in the franchise.At the team's current $15.5 billion valuation, 30% equals exactly $4.65 billion.This amount cannot be borrowed; it must be the buyer's own personal cash or liquid assets.

30% yes, I don’t believe that needs to be personal liquid cash. It could be a loan based on the investors assets. Plenty of investment banks will bend over backwards to lend out billions.

 

[Diehardblues]

Sorry, it was 12-13%

The Dallas Cowboys, long known as 'America's Team,' now have 12 percent backing to that claim.

https://www.upi.com/Archives/1989/09/03/Government-holds-12-percent-of-Dallas-Cowboys/2764620798400/

Cowboys aren’t America’s Team anymore - US sells its share
https://www.deseret.com/1990/3/18/1...t-america-s-team-anymore-u-s-sells-its-share/

The Cowboys were in such trouble financially when Jones came to buy them that the government (FDIC) had already foreclosed on 13 percent of the team, while another 40 percent was set to be foreclosed on

https://www.espn.com/nfl/story/_/id...las-cowboys-25-moves-biggest-nfl-power-broker

“The Fort Worth Star-Telegram reported Sunday the government acquired the share of the NFL club when it assisted NCNB Corp. of North Carolina in its takeover of First Republic Bank of Dallas.

The Cowboy shares formerly were owned by three of the team's limited partners, Brad Camp, Foster Yancey Jr. and J.L. Huffines, and had been pledged as collateral on a series of real estate loans that went into default.”

As I suspected this was directly connected to Bum Bright and his limited partners due to Savings and Loans not the Cowboys .

This is all why he had to sell the Cowboys to satisfy his personal bankruptcy . Cowboys were his most fluid asset of value.

And the fact he needed to sell fast drive his decision to sell to Jetho who was paying cash instead of more reputable professional sports owners of Lakers and Mavs who had higher bids but would need time to sell their stakes in NBA franchises. Time Bum didnt have.

 

[Diehardblues]

EXACTLY. Perfectly said.
#Emphasis: And these profits come off of 2 consecutive 7 win seasons.

It makes no business sense whatsoever for a failed NFL commodity like this to generate these net gains.

It's one of the world's and life's biggest mysteries as to how such continued financial success is possible while achieving no onfield success whatsoever in 3 decades.

Well, it’s not just the Cowboys. It’s most of the NFL enjoying hundreds of millions of revenue and value of billions , several with less success this era than Dallas.