Dallas Cowboys Valued at $3 Billion

Dallas Cowboys become first American sports franchise worth $3 billion

By Ian Palmer

According to Forbes business magazine, the NFL’s Dallas Cowboys are the first American pro sports franchise to be valued at $3 billion. The magazine just released its annual list of the world’s most-valuable sports franchises with Spanish soccer team Real Madrid ranking number one at $3.4 billion. The Cowboys come in tied for second at $3.2 billion with Spanish soccer team Barcelona.

This is the eighth consecutive year the Cowboys have been ranked as the most valuable NFL team. The club had a league-high revenue of $560 million last season along with an operating income of $246 million. The New England Patriots are the NFL’s second most-valuable club at $2.6 billion. The Patriots generated $428 million in revenues as well as $147 million in operating income. The Cowboys’ value rose 39 per cent over the previous year while the Patriots jumped up by 44 per cent.

The average value for an NFL franchise in 2014 is now $1.43 billion, making it the most valuable league in the world. The $1.43 billion value represents the highest amount in the past 17 years, which is when Forbes began valuing NFL teams. The average value rose 23 per cent over 2013, which is the biggest one-year increase since 1999. The magazine determines the value of a sports franchise by using equity plus net debt figures. Forbes also takes the team’s current stadium situation. The Washington Redskins are ranked third in value when it comes to the 32 NFL teams at $2.4 billion, which is a 41 per cent increase over the last list. The New York Giants are fourth at $2.1 billion and the Houston Texans are ranked fifth at $1.85 billion.

Here’s the complete list of NFL teams:

  1. Dallas Cowboys ($3.2 billion)
  2. New England Patriots ($2.6 billion)
  3. Washington Redskins ($2.4 billion)
  4. New York Giants ($2. billion)
  5. Houston Texans ($1.85 billion)
  6. New York Jets ($1.8 billion)
  7. Philadelphia Eagles ($1.75 billion)
  8. Chicago Bears ($1.7 billion)
  9. San Francisco 49ers ($1.6 billion)
  10. Baltimore Ravens ($1.5 billion)
  11. Denver Broncos ($1.45 billion)
  12. Indianapolis Colts ($1.4 billion)
  13. Green Bay Packers ($1,375 billion)
  14. Pittsburgh Steelers ($1.35 billion)
  15. Seattle Seahawks ($1.330 billion)
  16. Miami Dolphins ($1.3 billion)
  17. Carolina Panthers ($1.25 billion)
  18. Tampa Bay Buccaneers ($1.225 billion)
  19. Tennessee Titans ($1.16 billion)
  20. Minnesota Vikings ($1.15 billion)
  21. Atlanta Falcons ($1.125 billion)
  22. Cleveland Browns ($1.12 billion)
  23. New Orleans Saints ($1.11 billion)
  24. Kansas City Chiefs ($1.1 billion)
  25. Arizona Cardinals ($1 billion)
  26. San Diego Chargers ($995 million)
  27. Cincinnati Bengals ($990 million)
  28. Oakland Raiders ($970 million)
  29. Jacksonville Jaguars ($965 million)
  30. Detroit Lions ($960 million)
  31. Buffalo Bills ($935 million)
  32. St. Louis Rams ($930 million)

In 2013 the average NFL franchise generated $299 million in revenue with an operating income of $53 million. All clubs received $170 million in national revenue which was generally made up of licensing fees and league broadcasting rights. At the bottom of the league’s value list is the St. Louis Rams with a franchise worth of $930 million. The Buffalo Bills are second-lowest at $935 million. The Bills now have a “For Sale” sign on them due to this year’s death of owner Ralph Wilson. However, all 32 NFL franchises rose in value with Arizona being the lowest at an increase of just four per cent. Just seven NFL clubs are valued below $1 billion.