Jerry Jones, the name synonymous with the Dallas Cowboys, is more than just a team owner; he’s a business magnate who has built a sporting and financial empire. While often seen as a controversial figure, his journey from near business failures to becoming one of the wealthiest individuals in the NFL is a compelling story of ambition, risk-taking, and strategic business acumen. But how exactly did Jerry Jones amass his fortune and build the Dallas Cowboys into the most valuable sports franchise in the world? Let’s delve into the key steps that shaped his financial success.
Early Ventures and Lessons in Business
Long before he was known for his NFL ownership, Jerry Jones was cultivating his entrepreneurial spirit. Even during his time at the University of Arkansas, where he played football, Jones was known as “the Razorback businessman,” engaging in ventures like selling life insurance and shoes. After graduating in 1965, he took his first major plunge into the business world with Shakey’s Pizza Parlor franchises in the Dallas/Fort Worth area. This early venture, however, proved to be a significant learning experience. Despite initial growth in the 1970s, the pizza chain ultimately faltered, and by 1989, all of Jones’ locations had closed. This setback, involving a substantial loan, was a crucial early lesson in the volatile nature of business and the importance of adapting to market changes.
Alt text: Jerry Jones in his early business career, standing outside one of his Shakey’s Pizza Parlor franchise locations, highlighting his initial entrepreneurial endeavors before his success in oil and football.
Interestingly, the world of professional football almost beckoned early in his career. Just after college, Jones considered purchasing the San Diego Chargers, a move discouraged by his father. His father’s background was in business too, starting with a grocery store, Pat’s Supermarket, where young Jerry even worked as a greeter. His father later transitioned into a successful insurance career at Modern Life Security. Following the Shakey’s Pizza setback, Jerry Jones joined his father at Modern Life Security, serving as executive vice president. The sale of this company in 1970 provided Jones with a $500,000 windfall, a sum that would become pivotal for his next, and far more lucrative, venture.
Striking Black Gold: The Oil and Gas Fortune
Recognizing the potential in the energy sector, Jerry Jones ventured into oil and gas exploration in Arkansas, founding Jones Oil and Land Lease. This marked a turning point in his financial trajectory. Demonstrating a blend of business acumen and perhaps a stroke of luck, Jones experienced remarkable success in his early drilling endeavors. In an astonishing streak, 12 out of his first 13 wells struck oil. The very first successful well generated a substantial $4 million in revenue. This oil fortune provided the financial bedrock for his future ambitions, including his audacious move into NFL ownership. The oil business not only generated significant capital but also honed his skills in negotiation, risk management, and large-scale operations – skills that would prove invaluable in his subsequent takeover and transformation of the Dallas Cowboys.
The $140 Million Gamble: Acquiring the Dallas Cowboys
In 1989, at the age of 46, Jerry Jones made a bold move that would redefine his career and legacy. He purchased the Dallas Cowboys from H.R. “Bum” Bright for $140 million. At the time, this was a record-breaking sum in NFL history, a testament to Jones’s conviction in the team’s potential and his willingness to take calculated risks. The Cowboys, while a storied franchise, were facing financial difficulties and on-field struggles. Jones saw an opportunity to not just own a football team, but to revitalize a brand and build a sports empire. His acquisition was more than just a purchase; it was a declaration of intent to reshape the Cowboys into a global sports and entertainment powerhouse.
Alt text: Jerry Jones pictured at a press conference in 1989, officially announcing his purchase of the Dallas Cowboys, signaling the beginning of a new era for the franchise and his entry into NFL ownership.
Immediately after taking ownership, Jones made significant changes, most notably firing the legendary coach Tom Landry and hiring his former University of Arkansas teammate, Jimmy Johnson. He also appointed himself as general manager, taking direct control of player personnel decisions. These moves, while initially controversial, set the stage for a remarkable turnaround. Under Jones’s leadership and Johnson’s coaching, the Cowboys experienced a period of unprecedented success in the 1990s, winning three Super Bowls between 1992 and 1996. This on-field success was crucial in rebuilding the team’s image and fan base, making them more attractive to sponsors and broadcasting partners.
Branding and Business Innovation: The Cowboys’ Money-Making Machine
Beyond on-field performance, Jerry Jones revolutionized the business side of the Dallas Cowboys and the NFL itself. He understood the power of branding and marketing in sports. Jones transformed the Cowboys into a global brand through strategic TV appearances, cultivating star players, and famously, through the Dallas Cowboys Cheerleaders, who became an iconic symbol of the franchise. He recognized the untapped revenue potential within the Cowboys brand and the NFL.
The Dallas Cowboys can win a Super Bowl with Dak Prescott at QB. He was an MVP Candidate for most of last season. Dak isn’t the issue. The Culture that Jerry Jones has created is. The first step to fixing the issue is acknowledging that there is a problem. pic.twitter.com/4EJlORipZt
— Robert Griffin III (@RGIII) March 5, 2024
Alt text: Robert Griffin III’s tweet from March 5, 2024, commenting on the Dallas Cowboys’ potential and culture under Jerry Jones’ ownership, sparking discussions about team performance and management.
In a landmark move that changed the financial landscape of the NFL, Jones pioneered individual sponsorship deals for Texas Stadium, the Cowboys’ former home, in 1995. Previously, sponsorship deals were managed by the league and revenue was shared equally among all teams. Jones broke this norm, securing lucrative deals directly for the Cowboys, including a 10-year, $40 million agreement with Pepsi-Cola and a $2.5 million deal with Nike. This aggressive approach to sponsorships significantly increased the Cowboys’ revenue stream and paved the way for other NFL teams to pursue similar strategies, fundamentally altering the league’s financial model. His innovative approach continued with a 10-year, $200 million extension with Molson Coors in 2021, showcasing his sustained ability to secure top-tier sponsorships.
Jerry Jones in 1993 interview: “Give them all the players. Give them all the draft picks. Give them the quarterback too. We’re going to win because we’re the Dallas Cowboys. We believe that.” pic.twitter.com/TPrwyTOjou
— Jon Machota (@jonmachota) July 3, 2019
Alt text: Tweet from Jon Machota featuring a quote from a 1993 interview with Jerry Jones, emphasizing his unwavering confidence and belief in the Dallas Cowboys brand and their ability to win, reflecting his strong leadership and vision.
Further expanding the Cowboys’ financial reach, Jones launched a merchandising company, became a part-owner of Papa John’s Pizza (making it the official pizza of the Cowboys and a stadium sponsor), and spearheaded the construction of the state-of-the-art AT&T Stadium. This billion-dollar stadium is not just a football venue; it’s a multi-purpose entertainment complex that hosts a wide array of events, including concerts and other sports games, generating substantial revenue for both the Cowboys and the city. The stadium’s success as an event hub further diversifies Jones’s income streams, drawing in massive crowds and boosting local economies through tourism, hospitality, and retail spending.
Diversification and Continued Investments
Jerry Jones’s business interests extend far beyond the Dallas Cowboys. His portfolio includes Legends Hospitality, a company providing premium experiences at sports and entertainment venues; 289c Apparel, a merchandising company; and Cowboys Fit, a chain of high-end gyms. He has also invested heavily in real estate, land acquisition, and continues to explore drilling opportunities. Notably, in 2018, he became the controlling shareholder of Comstock Resources, a publicly traded oil and gas company in Texas, demonstrating his continued commitment to the energy sector. These diverse investments showcase a shrewd businessman who understands the importance of not relying on a single source of income and actively seeks opportunities across various industries.
Conclusion: A Legacy of Business Acumen and Empire Building
From his early days managing Shakey’s Pizza to building a billion-dollar NFL empire, Jerry Jones’s financial success is a multifaceted story. It’s a narrative built on early entrepreneurial lessons, a pivotal oil fortune, a bold acquisition, and relentless business innovation. His willingness to challenge conventional norms in the NFL, coupled with his marketing genius and diversification strategies, transformed the Dallas Cowboys into a financial juggernaut and solidified his own immense wealth. While the Cowboys’ playoff success in recent decades remains a topic of fan debate, there’s no denying that Jerry Jones has built a remarkable business empire, proving himself to be one of the most influential and financially successful owners in sports history. His story serves as a testament to the power of vision, risk-taking, and relentless pursuit of business growth.
