Jerry Jones' Unconventional Purchase of the Dallas Cowboys

In 1989, Jerry Jones acquired the Dallas Cowboys in a move that he describes as a financial gamble, facilitated by a unique set of circumstances that allowed him to bypass standard financial qualifications. At the time, the Cowboys were in dire straits, losing $1 million per month and facing a bleak future. Jones noted on The Gambler Podcast that the NFL was eager to find a solution to avoid taking over the struggling franchise. “Control was going to be auctioned off,” he explained, emphasizing that the league did not thoroughly vet his financial standing. He asserted, “I literally got to get in the saddle without being financially qualified,” a scenario he believes would be impossible today.

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The initial asking price for the Cowboys was $200 million, a figure Jones could not meet. However, after negotiations, he purchased the team for $140 million, which included $75 million for Texas Stadium. This transaction marked a significant moment in sports history, as it was the first time a franchise sold for over $100 million, despite its precarious financial condition.

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Jones' acquisition involved substantial personal risk. He liquidated his retirement fund and a portion of the $175 million sale of his gas and oil company, Arkoma, to finance the purchase. He paid $90 million in cash and used all his assets as collateral to secure the remaining funds. Despite warnings from advisors about potential losses, Jones was driven by a passion for sports. He recalled, “I was blindly intoxicated with the idea of being involved with sports and the NFL.” This fervor led him to take on $15 million in debt, including deferred player contracts.

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Jones' father cautioned him about the importance of making the venture appear successful, warning that failure would tarnish his reputation. However, the risks paid off; the Cowboys are now valued at approximately $13 billion, showcasing the success of Jones' ownership. His journey from a financially unqualified buyer to a prominent NFL owner illustrates the transformative potential of strategic risk-taking in sports management.

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Despite the eventual success, some critics argue that Jones' initial acquisition set a precedent for financial irregularities in sports ownership. The notion that the NFL bent its rules to facilitate his purchase raises questions about the league's vetting processes for prospective owners. Critics contend that such leniency could undermine the integrity of franchise ownership.

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• “Control was going to be auctioned off,” — Jerry Jones, Owner of the Dallas Cowboys

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• “I literally got to get in the saddle without being financially qualified.” — Jerry Jones, Owner of the Dallas Cowboys

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• “I was blindly intoxicated with the idea of being involved with sports and the NFL,” — Jerry Jones, Owner of the Dallas Cowboys

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• “I don’t care whether you do it by mirrors, smoke or what, you’ve got to make it look successful or you will be known as a loser.” — Jerry Jones, recounting his father's advice

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In summary, Jerry Jones' acquisition of the Dallas Cowboys is a compelling narrative of risk, ambition, and the complexities of sports ownership, highlighting both the potential rewards and criticisms associated with such high-stakes decisions.

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