When Jerry Jones bought the Dallas Cowboys they were losing $1 million per month and now it is the most valuable team in the world
Cowboys owner Jerry Jones was recently a guest on Adam Schefter's podcast and he told a story about just how bad things were when he first purchased the team in 1989.
When Jones was asked how he made the Cowboys look successful early on, he explained that he had to get creative because the team was bleeding money, to the tune of $1 million per month.
"Very early on, the club was losing [money]," Jones told Schefter. "The Cowboys, that I bought - this is not going to make many people respect me as a businessperson - but I bought the Cowboys and they were losing $1 million cash a month, $1 million a month."
That's about $2 million per month in 2016 dollars, and that was just the beginning of the financial problems for Jones and the Cowboys.
Jones went on to explain that he was also paying 11% interest on the money he borrowed to buy the team.
"The interest alone on the investment in the club was another X-million dollars, 11 percent interest on the amount that I borrowed," Jones said. "It was a bill of almost $100,000 a day."
That translates to another $3 million per month on top of the $1 million per month in operating losses. That is close to $8 million per month when translated to 2016 dollars.
Twenty-eight years later, things are going a bit better for Jones and the Cowboys.
When Jones purchased the team in 1989 for $140 million, it was the first time anybody had ever paid more than $100 million for a sports team. That investment paid of big time as the Cowboys are now worth $4.2 billion and have an annual operating income of $300 million.
Cork Gaines/Business Insider
- A Google engineer of 8 years says his 'spidey-senses' detected incoming layoffs — and felt 'isolated' when his 'faceless' severance email arrived
- A Google employee of 11 years says he and his wife stared at each other in 'disbelief' when they realized they'd both been laid off by the company
- A Google recruiter says he discovered he'd lost his job after a call with one of his candidates suddenly disconnected
- Google may release Pixel Tablet Pro with Tensor G2 chip
- BMW launches its 3rd gen BMW X1 in India
- YouTube Music on the web gets mood filters
- Premium segment contributed 35% of overall smartphone market revenue in 2022
- US industry urges FM to rationalise, simplify direct and indirect taxes in India