Why the Dallas Cowboys are the most valuable sports franchise
The Dallas Cowboys are not only the most valuable franchise in the NFL but also the entire world of sports. Founded in 1960, the team has grown to be one of the most successful in the NFL and has also done brilliantly on the financial side.
The Cowboys are currently owned by Jerry Jones. The businessman acquired the team in 1989 and has gone on to build a formidable empire in the NFL. The Cowboys have continually witnessed success under Jones on and off the field. With a solid structure, the Cowboys stay clear at the top of the ranks of sports franchises.
Feb. 25/1989 - Jerry Jones is announced as the owner of the Dallas Cowboys as he purchases the team for $140M. https://t.co/8uNL7Sdjl3
Cowboys' Value and Sporadic Growth under Jerry Jones
According to Forbes, the Cowboys currently have an estimated value of $8 billion. The franchise is worth $1.6 billion more than the second-place New England Patriots. The Cowboys have led the rankings since 2016, after overtaking Spanish soccer giant Real Madrid at the top of the log. It doesn't look like the team will surrender the top spot anytime soon.
Value of Dallas Cowboys rushes to record-smashing $8 billion fortworth.culturemap.com/news/entertain…
Jerry Jones acquired the Dallas Cowboys in 1989 for $140 million. The American businessman bought the team from Harvey Roberts Bright, who only acquired the team five years earlier from Clint Murchison Jr. for $85 million. Jerry Jones has adequately ensured the steady financial rise of the team since he took over the ownership of the team.
By the turn of the century, the value of the Dallas Cowboys had quintupled with the franchise valued at $784 million in 2002. The value of the team reached the $1 billion mark in 2005 when it was valued at $1.06 billion. The franchise went on to increase in value to more than $2 billion in 2012 and more than $5 billion in 2018.
The Financial Standing of the Cowboys
In the financial year ending 2022, the Cowboys generated a massive $1.08 billion in revenue. That is over $400 million more than any other club in the NFL. The franchise also recorded an operating income of $466 million, which is also the highest in the league. The team also posted $102 million in gate ticket revenue, as well as player expenses worth $279 million.
The Cowboys also had a 23% increase in value from the previous year, moving from $6.4 billion to $8 billion, which is also among the best in the NFL. In the breakdown, $1.81 billion of the value is attributed to the franchise's market size. Meanwhile, the team's home ground, AT&T Stadium, is responsible for $1.64 billion of the total value.
The sports-related revenue earned by the team contributed to $2.96 billion of its value while the remaining $1.57 billion is attributed to branding. The debt value of the franchise stood at 4% in 2022, which is also one of the lowest in the NFL. The brilliant financial performance of the Dallas Cowboys effectively showcases why it is the world's most valuable sports franchise.