Two Sports Programs in Texas That Have Grown to Become Billion-Dollar Franchises
Texas is known for its big personalities, large landscapes, and bigger ambitions. The state’s sports programs have long been a source of pride and passion, and in recent decades, two sports franchises have transcended regional popularity to become global powerhouses. The Dallas Cowboys and the Houston Texans have not only solidified their place in the state’s culture but have also grown into billion-dollar entities. This article explores the journey of both franchises and examines how they reached their current status.
The Dallas Cowboys: America’s Team
History and Rise to Prominence
The Dallas Cowboys, often referred to as “America’s Team,” are the most valuable sports franchise in Texas and one of the richest in the world. Founded in 1960, the Cowboys initially struggled but quickly turned around their fortunes under the leadership of Hall of Fame coach Tom Landry and iconic owner Jerry Jones.
From the 1970s onward, the Cowboys became a dominant force in the NFL. Their breakthrough came in the 1970s when the team became known for its “Doomsday Defense” and star players like Roger Staubach, Tony Dorsett, and Drew Pearson. This era, which featured multiple Super Bowl victories, helped cement the Cowboys’ place in the hearts of Texas residents and football fans nationwide.
Jerry Jones and the Business of Football
In 1989, the Cowboys were purchased by Jerry Jones for $140 million, a move that would go down in history as one of the most lucrative investments in sports history. Jones, a savvy businessman, recognized the untapped potential of sports franchises as business operations. Under his ownership, the Cowboys have transformed into not just a football team, but a global brand.
Jones took an aggressive approach to market the Cowboys. He revamped the team’s branding, focusing heavily on the team’s legacy and its link to Texas pride. His vision also extended beyond the game itself. He created partnerships, established lucrative media deals, and invested heavily in fan engagement and stadium experiences.
One of Jones’ most groundbreaking moves was the development of the team’s home field, AT&T Stadium in Arlington, Texas. Opened in 2009 at a cost of $1.3 billion, the stadium is one of the largest and most advanced sports venues in the world. With its retractable roof, a massive high-definition video board, and luxurious amenities, the stadium has become an experience, not just a place to watch football. It hosts a variety of events, including concerts, soccer matches, college football games, and even the annual Cotton Bowl. This multi-use facility has proven to be a revenue-generating machine.
The Dallas Cowboys’ revenue model, including sponsorships, luxury suites, merchandise sales, and broadcasting rights, is unparalleled. According to Forbes, the Cowboys are consistently the most valuable sports franchise in the world, worth over $8 billion in 2023. The team generates approximately $1 billion annually in revenue, with a significant portion coming from non-game-day revenue streams such as stadium events, branded merchandise, and media rights.
Impact on Texas and Beyond
The Cowboys’ success is not just about on-field victories but also about their cultural influence. The team has attracted fans from all over the world, and its popularity extends far beyond the borders of Texas. The Cowboys’ global reach is enhanced through extensive merchandising and global broadcasting rights, ensuring that the brand remains a fixture in sports culture.
As a result, the Cowboys have become an economic engine for the Dallas-Fort Worth area. They drive tourism, create jobs, and serve as a source of civic pride. The team’s merchandise is among the most sold in the world, with the Cowboys’ iconic star logo appearing on everything from shirts to hats to coffee mugs.
The Houston Texans: A New Dynasty?
The Birth of the Texans
While the Cowboys have a long legacy of success, the Houston Texans represent the modern era of Texas football. The Texans are a relatively new addition to the NFL, having been established as an expansion team in 2002. They were the NFL’s 32nd team, created to fill the void left by the Houston Oilers, who relocated to Tennessee in 1997 and became the Titans.
In their short history, the Texans have experienced some growing pains, but they have steadily built a strong and loyal fanbase. The team’s early years were marked by attempts to find stability at the quarterback position, and the Texans had difficulty achieving success in the playoffs. Despite these challenges, the team steadily grew its brand and fan engagement through strategic investments and marketing efforts.
Ownership and the Business of the Texans
The Texans are owned by the McNair family, with Bob McNair being the team’s founding owner until his death in 2018. McNair, a businessman with a deep interest in sports, set out to create a winning franchise that would be a source of pride for Houston and the state of Texas. His approach mirrored Jerry Jones’ in many ways, focusing on building a strong community connection and maximizing the financial potential of the franchise.
The Texans have benefited from the rise of the NFL as a global powerhouse. The league’s revenue-sharing model and multi-billion-dollar television deals have enabled teams like the Texans to thrive. As one of the newer teams in the NFL, the Texans’ early years were about establishing a winning culture and improving team performance. With star players like J.J. Watt and Deshaun Watson, the Texans have achieved sustained on-field success, making the playoffs in several seasons and establishing a strong fan following.
Like the Cowboys, the Texans have also capitalized on the power of the stadium. NRG Stadium, the team’s home since 2002, has become a vital part of the city’s economic infrastructure. The stadium, which cost $352 million to build, hosts more than just football games. It is a major venue for concerts, the Houston Livestock Show and Rodeo, and various other events. Its location, just south of downtown Houston, has helped it become a central hub for entertainment and sports in the city.
Growth into a Billion-Dollar Franchise
The Texans’ growth in value has been impressive, with the franchise now worth approximately $5 billion, according to Forbes in 2023. The team’s financial success is largely driven by its revenue from television contracts, ticket sales, sponsorships, and luxury suites. Additionally, the Texans benefit from the NFL’s media agreements, which distribute television revenue among teams, ensuring that all franchises, regardless of their market size, have the resources to grow.
Despite the Texans’ relatively brief history compared to other NFL teams, the franchise has been able to leverage its position in a major metropolitan area to attract a diverse fan base. Houston is one of the most culturally diverse cities in the United States, and the Texans have done an excellent job of tapping into this demographic by building a broad and inclusive fanbase. Furthermore, the team’s regional popularity has made it a key player in the global sports landscape.
The Texans’ performance off the field has been marked by their strong social media presence and branding strategies. They have created a modern, forward-thinking brand that resonates with younger audiences, which is crucial for sustaining long-term success. The team’s ability to innovate in fan engagement, such as through digital platforms and mobile applications, has allowed them to connect with a new generation of sports enthusiasts.
Texas: A Sports Powerhouse
Both the Dallas Cowboys and the Houston Texans exemplify Texas’ ability to foster sports programs that are not only successful on the field but also powerful business enterprises. These two franchises, while distinct in their histories and market approaches, share a commitment to excellence, both in sports and business.
Texas is often referred to as the state where everything is bigger, and in the case of its two major NFL franchises, this saying holds true. The Cowboys have established themselves as a global brand, while the Texans continue to build a legacy in Houston. Both teams serve as important economic engines for their respective cities and contribute significantly to the state’s overall cultural and economic vibrancy.
The success of these two franchises underscores the importance of sports in Texas. Football, in particular, is a way of life, and the Cowboys and Texans embody the spirit of the Lone Star State: ambitious, proud, and constantly striving for greatness. Their billion-dollar valuations are a testament to the enduring power of Texas football and the ability of sports teams to evolve into major global brands.
In the years to come, it’s likely that both the Cowboys and the Texans will continue to grow their financial empires, whether through on-field success, expanded media deals, or new ventures in entertainment and business. For Texas fans, this is just the beginning of a long and prosperous journey.
