The 2023-24 National Football League (NFL) regular season is done and dusted, and only 16 teams remain in contention to become the champions of Super Bowl LVIII. The Dallas Cowboys are one of the teams that find themselves in the playoffs, and their owner, Jerry Jones, knows he could be sitting on a franchise worth $10 billion if the Cowboys go all the way and triumph in Las Vegas, Nevada, on Feb. 11.
According to the latest online Super Bowl betting markets, the Dallas Cowboys are fourth-favorite to lift the Vince Lombardi trophy in February. Only the San Francisco 49ers, Baltimore Ravens and Buffalo Bills have shorter odds. Much prestige comes with being crowned NFL champions, as Cowboys fans know. The Cowboys have won the Super Bowl five times, although they have not reached American football's most prestigious game since they won their fifth title in 1995. Is the near three-decade wait for glory about to end? The aforementioned Jones hopes so.
Turning $140 Million Into $9 Billion
Jones made much of his $13.8 billion fortune from the oil and gas exploration industry, although he is best known for owning the Dallas Cowboys. On Feb. 25, 1989, Jones paid $140 million (the equivalent of $342.8 million today) to H.R. Bright for full ownership of the Dallas Cowboys.
After finishing 1-15 in Jones' first season at the helm, the Dallas Cowboys became one of the best NFL franchises of the 1990s that won the Super Bowl in 1992, 1993 and 1995. However, since 1995, the Cowboys have not progressed past the Divisional Playoffs round despite substantial investment in players, coaching staff and infrastructure.
There is no denying Jones' ability to build a brand and a lucrative business. In 2014, the Dallas Cowboys became the first NFL franchise valued at $4 billion. Three years later, Forbes again ranked the Cowboys as the most valuable NFL team, this time with a $5 billion valuation. $8 billion was what the Cowboys were worth in 2021, with Forbes valuing the teams at $9 billion in 2023. If, and it is a big if, the Cowboys can shake off their playoff hoodoo, the team will probably push through the $10 billion valuation barrier and become the first sports team worldwide to achieve such a feat.
Forbes uses four metrics when valuing NFL franchises: sport, market, stadium and brand. The Dallas Cowboys come out on top in each field. Sport is the portion of the franchise's value attributed to revenue shared among all 32 NFL teams. This accounts for $3.436 billion of the Cowboys' $9 billion valuation. Market is based on the team's city and market size, which is worth $2.035 billion to Jones' Cowboys, while the AT&T Stadium adds $1.8 billion. The Cowboys are one of the most recognizable brands globally; their brand is worth $1.73 billion.
Winning the Super Bowl Sends Fans and Sponsors Into a Frenzy
The Dallas Cowboys enjoys annual revenues of $1.14 billion, far more than any of its 31 rivals. The Las Vegas Raiders rank second with "only" $729 million of revenue. All that additional revenue translates to a colossal operating income of over $500 million, more than double the $216 million of the second-placed New York Giants. The Cowboys' revenue and operating income numbers trump every other team in the NFL despite the team's lack of success on the field. Imagine what those numbers could be if they become Super Bowl LVIII champions this year.
The winning Super Bowl team experiences a surge in fan engagement and support, leading to heightened demand for tickets and merchandise. $108 is the average Cowboys game ticket now, but that could increase to $150 or more if they become NFL champions. Fans will clamber for official shirts and merchandise, while American football fans new to the NFL will likely choose the reigning Super Bowl champions to support, further increasing revenue.
Then, there is the bargaining power that comes with being Super Bowl champions when negotiating sponsorship deals. Not only do sponsors gain more exposure, but they also increase credibility through being intrinsically linked to the champions of the NFL. These factors improve revenue and operating income, but the most significant gain will come from an inflated brand valuation. When all is said and done, the Cowboys becoming Super Bowl LVIII champions will almost certainly ensure they become sport's first-ever $10 billion team, giving Jones an incredible return on his $140 million investment.
What Stands Between the Cowboys and Super Bowl Glory?
The Dallas Cowboys finished with a 12-5 record during the regular season, enough to win the NFC East and rank as the second seed in the NFC. Had they not been demolished 10-42 by the San Francisco 49ers in Week 5, the Cowboys would have been the number one seed and received a bye in the first playoff rounds.
Instead, they host the Green Bay Packers on Jan. 14. The Packers are not the team they once were; they finished the regular season with a 9-8 record, scraping into the playoff pictures. The Cowboys and Packers have faced each other eight times in the postseason, with the series tied 4-4. In 2016, the Packers won 34-31 with a walk-off 51-year field goal. Cowboys fans will not want a repeat performance.
Should the Cowboys beat the Packers on Jan. 14, the highest-seeded team, apart from number one seed San Francisco 49ers, awaits them in the Divisional Round. Those opponents could be the Detroit Lions, Tampa Bay Buccaneers, or the Philadelphia Eagles. They can't play the Los Angeles Rams even if the Rams brush aside the Detroit Lions because the Rams would be the highest-seeded NFC team and, therefore, they'd play the 49ers.
The Cowboys are three games away from their first Super Bowl appearance since 1995. They won it then; why not now?
