The Economics of Jerry Jones

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"Follow the Money" - You hear that cliche often when trying to get to the bottom of an issue.

For Jerry Jones, I plan on collecting all revenue information in this thread.

Ultimately, the point is to show that Jerry doesn't care about winning Super Bowls. He cares about not being an irrelevant, perennial 3-13 team. However, the difference between a relevant Week 17 playoff pretender and a Super Bowl champion isn't enough to give up the ego-feeding fun he's having as GM.

I'm all for Jerry Jones making money. I want the Cowboys to be the most profitable, revenue-generating sports team in existence...but not at the expense of being a Super Bowl contender.
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MISCELLANEOUS/OVERALL
1. Forbes -
“Basically, the value of the franchise is four times revenue”

2.
According to Forbes, the Cowboys are currently generating $500 million PER YEAR in revenue, creating operating income of around $226 million (more than the combined totals of either the NBA or NHL).
 
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TV Deals
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1. Based on already signed deals, the league is going to receive approximately $6 billion PER YEAR from their deals with NFC, Fox, CBS, ESPN and DirecTV as of 2014. These revenues are split evenly between each of the league's 32 teams, meaning that the Cowboys will receive approximately $200 million per year just from TV rights. That's $200 million per year before a single ticket or jersey is sold.
 

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STADIUM

AT&T Sponsorship
1. AT&T naming rights - ESPN reported the deal would be worth $17 million to $19 million a year over an undefined period.

2. During games, Biswas and sports business expert Craig Depken speculated, fans could be streaming highlights from other NFL games, communicating with friends outside the stadium, and viewing custom content provided by the Cowboys or others on their mobile devices. The Cowboys and AT&T will probably share in revenue yielded by technology that has yet to be developed.

Some of the exclusive content might come with an extra charge, Biswas and Depken said, while acknowledging that a lot of experimentation with offerings and pricing is likely.

Other Sponsorships
1. The team receives $80 million per year in annual sponsorship revenue for their stadium from the likes of Ford Motor, Bank of America and PepsiCo. This is almost $20 million more than any other team.

Attendance
1. For the 5th straight year (2009-2013), the Dallas Cowboys ranked #1 in home attendance.

2013 - #1, Avg 88,043
2012 - #1, Avg 88,531
2011 - #1, Avg 85.512
2010 - #1, Avg 87,047
2009 - #1, Avg 89,756
2008 - #26, Avg 63,368
2007 - #25, Avg 63,534
2006 - #24, Avg 63,288

2. Not only are the Cowboys #1 (2009-2013) they are in a league of their own. Compare the Cowboys' attendance versus the other top 3 teams average.

Year - Avg Attendance of Teams #2-4 vs Cowboys Attendance (% higher)
2013 - 78,438 vs 88,043 (12%)
2012 - 79,746 vs 88,531 (11%)
2011 - 78,461 vs 85,512 (9%)
2010 - 80,262 vs 87,047 (8.5%)
2009 - 80,182 vs 89,756 (12%)

3. Compare the attendance between Texas Stadium (~tear~) and the Deathstar. From the attendance stats in #1, the new stadium provides an additional ~23,000 tickets for revenue.

If you consider $300 as the average cost 2013 for two tickets/two beers/parking combo, that's $3.45Million extra revenue per game with the new stadium.

Luxury Suites & PSLs
1. The suites at Cowboys Stadium cost between $100,000 and $500,000 a year. Personal Seat License (PSL) is a one-time fee that customers pay for the right to purchase tickets for a given seat. PSL costs are astronomical: For an even marginally decent seat, fans are looking at PSL costs of close to $12,500, and they go up to $150,000 for quality seats on the 50-yard line. The Cowboys organization will finance it for you, at 8 percent interest, over 27 years.

That fee doesn’t even get you into the stadium—it’s just the price you pay for the right to buy tickets. After spending $29,100 (the average price) for the PSL, the license-holder is required to purchase 10 tickets—one to each of eight regular season games, plus both preseason games—every year for the next 30 years. Those tickets range in cost from $590 annually for upper-level seats over the end zone to $3,400 a year. Failure to follow through with the required purchases can result in revocation of the PSL and forfeiture of all funds already paid toward the license.

Non-Cowboys Events
1. 2009 Estimated # of Events, Est Ticket Price, Est Tickets Available, Est Revenue
Cowboys Pre-Season (2), 70k, $83, $11.7M
Cowboys Regular Season (8), 70k, $83, $47M
Cowboys Post-Season (0)
Concerts (1), 45k, $70, $3.1M
High School Football (15), 5k, $10, $750k
Other (2), 20k, $45, $1.8M
Soccer (2), 30k, $30, $1.8M
College Football (1), 75k, $75, $5.6M
College Bowl Game (1), 75k, $100, $7.5M
Truck & Tractor (2), 40k, $30, $2.4M
Other Events (10), 8k, $20, $1.6M
TOTAL 44 events = $83.3Million Revenue (Tickets Only)


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MERCHANDISING
1. An estimated $80 million in merchandise revenue (the Cowboys distribute their own merchandise). The league's new collective bargaining agreement specifically excludes the team's wholesale merchandise revenue from the revenue pool shared with the players (royalties paid on Cowboys merchandise do continue to be shared with the players).

NON-COWBOYS VENTURES

1. Legends Hospitality (
http://www.legendshm.com/) - a company owned by the Yankees (1/3) and the Dallas Cowboys (1/3), and others. The premier provider of general concessions, premium food & beverage, catering, retail merchandise and tours; Legends Sales and Marketing – an industry leader offering team owners, facility operators and athletic departments premium tickets sales and service, PSL sales execution, sponsorship and naming rights capabilities and sales training.

Customer List
A. Non-Sports: Observatory at NYC World Trade Center, City of Los Angeles
B. NFL: Washington Redskins, Cleveland Browns, New York Jets, Carolina Panthers, Carolina Panthers, Miami Dolphins, Houston Texans, Cleveland Browns, NY Giants, Atlanta Falcons, Green Bay Packers, Tampa Bay Bucs, SF 49ers
C. NCAA: USC Trojans, Michigan Wolverines, Oregon Ducks, TCU Horned Frogs, Texas A&M Aggies, Penn St Nittany Lions, West VA, Univ of Delaware, Rutgers Scarlet Knights, Nebraska Huskers, Stanford Cardinal
D. MLB: NY Yankees, Anaheim Angels, Houston Astros, Minnesota Twins, Arizona DBacks, San Diego Padres
E. NHL: Florida Panthers, Detroit Red Wings
F. NBA: Milwaukee Bucks, Orlando Magic, Philadelphia 76ers, Phoenix Suns, Brooklyn Nets
G. Stadiums: Heinze Field, Ford Field, Univ of Phoenix Stadium, MetLife Stadium

2. Retail & Residential Real Estate - According to Forbes.com,
Jerry Jones has funneled his Cowboys dough into retail and residential real estate developments around Dallas, generating further return on his investments.

3. Papa John's -
The Jones family owns a 49 percent stake in 75 Texas Papa John’s stores, primarily in North Texas.
 
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UncleMilti

This seemed like a good idea at the time.
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An average of 88,000 stupid motherfuckers hanging on Jerrys nutsack.
 

Hoffa

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The man knows how to make money. It's just unfortunate that he's the worst owner/GM in the NFL.
 

UncleMilti

This seemed like a good idea at the time.
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I think the numbers are already off.

Ticket sales alone net 100 million a year, and that doesn't include PSL's or Luxury boxes. Right?
 

Simpleton

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The root of the issue isn't that Jerry doesn't care about winning, he does, if only to feed his ego and prove people wrong. The problem is that he's delusional enough to where he's created his own reality and simply blocks out everything else, he hears it, he just doesn't believe it or let it in.

He doesn't have to listen to anybody so he doesn't, I truly do believe that the losing gets to him, it's just that he's manufactured a reality in his own mind where everything is ok because there are no real pressures forcing him to think otherwise.
 

data

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Interview from the Texas Monthly:

ES: How dependent is the revenue picture on the success of the team? It would stand to reason that a 9-7 season would not be as much of a revenue producer as a 14-2 season.

JJ: The success of the team is very important in terms of our sources of revenue. Because of the fans we have and the makeup of the fan base, when the Cowboys have success, it’s like putting a match in a room filled with gasoline. It just explodes. When we don’t have success, we may flatten or dip, but not as much as teams that don’t have the tradition or don’t have the interest that we have. Having said that, the new stadium will improve our chances for success because it will create more revenue. The one thing I’m known for in the NFL after twenty years is, I will spend the money.
 

Cotton

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jsmith6919

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so does this mean Jerry got some bad news at the Doctors office?
 

data

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Probably means he's buying NYE and you can't watch it without a PSL.
 
D

Deuce

Guest
so does this mean Jerry got some bad news at the Doctors office?
No. It means he reads this board and is trolling us. He's got nothing but time on his hands for a few months so he's getting a good laugh.
 

jester

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May 19, 2013
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The root of the issue isn't that Jerry doesn't care about winning, he does, if only to feed his ego and prove people wrong. The problem is that he's delusional enough to where he's created his own reality and simply blocks out everything else, he hears it, he just doesn't believe it or let it in.

He doesn't have to listen to anybody so he doesn't, I truly do believe that the losing gets to him, it's just that he's manufactured a reality in his own mind where everything is ok because there are no real pressures forcing him to think otherwise.
He's a business man first and a great one at that. Owner then GM. By definition the priority is to make make money and with the Cowboys brand the win revenue correlation is a nonfactor. He does want to win but sucess in his mind is profiet driven with winning a distant second.

I do see a leveling of the profit win margine ratio as the Cowboys continue its slide with the on field product and do not believe he has the skill set or humility to right the course. See Tex Shram type of model.
 

jester

Brand New Member
Joined
May 19, 2013
Messages
231
The root of the issue isn't that Jerry doesn't care about winning, he does, if only to feed his ego and prove people wrong. The problem is that he's delusional enough to where he's created his own reality and simply blocks out everything else, he hears it, he just doesn't believe it or let it in.

He doesn't have to listen to anybody so he doesn't, I truly do believe that the losing gets to him, it's just that he's manufactured a reality in his own mind where everything is ok because there are no real pressures forcing him to think otherwise.
He's a business man first and a great one at that. Owner then GM. By definition the priority is to make make money and with the Cowboys brand the win revenue correlation is a nonfactor. He does want to win but sucess in his mind is profiet driven with winning a distant second.

I do see a leveling of the profit win margine ratio as the Cowboys continue its slide with the on field product and do not believe he has the skill set or humility to right the course. See Tex Shram type of model.
 

jootep

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Apr 22, 2013
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If only the Cowboys were a Fortune 500 company and we were all stockholders.
 
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