The Dallas Cowboys are the NFL’s first and only $2 billion franchise, Forbes Magazine announced today as it released its annual team value list.
Michael Ozanian, Forbes’ executive editor, said the Cowboys’ value, which the magazine tabs at $2.1 billion, is "a conservative estimate."
Ozanian said the magazine took into account the Cowboys’ $80 million in sponsorship income, their state-of-the art stadium and the fact that they are the only team in the NFL that distributes its own merchandise to retailers.
Jerry Jones bought the Cowboys in 1989 for $140 million. That’s roughly a 715 percent increase to today’s value, factoring in inflation.
While the Cowboys stood atop the list for the sixth consecutive year, the New England Patriots (worth $1.63 billion) passed the Washington Redskins ($1.6 billion) for the second spot.
The New York Giants, valued at $1.46 billion, landed in fourth while the Houston Texas rounded out the top five at $1.3 billion.
Despite playing in the same stadium, the magazine estimated the net worth of the New York Jets at about $200 million less than the Giants.
"We have the Giants bringing in $27 million more in revenue, plus they’re getting the Super Bowl bump on ticket prices," Ozanian said.
Despite the threat of concussion litigation that could eventually cost the NFL billions of dollars, the magazine doesn’t have a single franchise losing value from last season.
"There wasn’t any loss of value reflected in the recent Cleveland Browns sale," Ozanian said. "The investment bankers we spoke to told us that prices haven’t dropped in terms of what people are offering for small or large shares of teams."
Forbes stated that 20 NFL teams are worth more than $1 billion, the most of any league. That number is up from 15 teams last year.
The Cincinnati Bengals, worth $871 million compared to $875 million last season, are the only team that lost value.
Forbes projects only two teams had operating losses last year — the Pittsburgh Steelers ($1.1 billion), due to a higher payroll, and the Oakland Raiders ($785 million), thanks to having the lowest revenues in the league.
The magazine concluded that the two teams that had the biggest jump in value were the Minnesota Vikings ($975 million) and the San Francisco 49ers ($1.17 billion), whose values jumped 22 and 19 percent, respectively, as a result of their new stadiums being built.
The Cowboys’ $2.1 billion value matches that of the Los Angeles Dodgers purchase by Guggenheim Partners. Forbes says only Manchester United is worth more. The magazine said the soccer team was worth $2.23 billion, but the team’s recent offering on the New York Stock Exchanged valued it at $2.9 billion.