Cowboys Most Valuable Franchise; Vikings Bring Up The Rear

Forbes Taps Cowboys As Most Valuable Franchise In NFL

The Cowboys have surpassed the Redskins as the most valuable franchise in the NFL, according to FORBES' annual valuations.  FORBES' Michael Ozanian wrote, "Thanks to their new stadium, which [team Owner] Jerry Jones will operate, the Cowboys are now worth $1.5[B], putting them atop the NFL team value rankings for the first time in eight years and making Dallas the most valuable sports franchise in the world."  The new stadium, scheduled to open in '09, will have over 200 suites leasing for $350,000, and stadium sponsorships "should bring in another" $50M.  The home team keeps suite and sponsorship revenue rather than putting it into the NFL's revenue-sharing pool (FORBES.com, 9/13).  Ozanian, on the Cowboys: "They wouldn't be No. 1 without their stadium." Ozanian said "only a small portion" of the increase in the Cowboys' value could be attributed to taxpayers' contribution to the stadium.  In a recent interview, Jones said, "I never looked at the Cowboys as an asset. People speculate about what it might be worth. I don't think about it that way" (DALLAS MORNING NEWS, 9/14). When asked about ranking No. 1 on Forbes' list, Jones said, "There is nothing in my business that I use that has market value as a part of it. It doesn't count anyplace. I do look at it as more of recognition that our franchise is internationally known as a premium entity in sports" (FT. WORTH STAR-TELEGRAM, 9/15).

THE LIST: The chart below details FORBES' NFL franchise valuations, as well as operating income and revenue for the ’06 season. Operating income is EBITDA. Valuations are based on current stadium deals (unless a new stadium is pending) without deduction for debt, except stadium debt (FORBES, 10/1 issue).

FORBES: '07 NFL FRANCHISE VALUATIONS
RK	TEAM	VALUE	1-YR %+/-	DEBT/VALUE (%)	REV.	OPER. INCOME
1	Cowboys	$1.50B	28%	42%	$242M	$4.3M
2	Redskins	$1.47B	3%	16%	$312M	$66.0M
3	Patriots	$1.20B	2%	25%	$255M	$34.9M
4	Texans	$1.06B	1%	28%	$225M	$25.9M
5	Eagles	$1.05B	3%	17%	$224M	$25.7M
6	Broncos	$994M	2%	20%	$212M	$15.9M
7	Bears	$984M	4%	19%	$209M	$36.9M
8	Giants	$974M	9%	67%	$195M	$10.7M
9	Browns	$969M	0%	10%	$206M	$20.6M
10	Jets	$967M	10%	67%	$193M	$26.4M
11	Ravens	$965M	2%	28%	$205M	$1.0M
12	Buccaneers	$963M	1%	15%	$205M	$39.5M
13	Chiefs	$960M	7%	14%	$196M	$35.2M
14	Panthers	$956M	2%	13%	$203M	$2.5M
15	Dolphins	$942M	3%	37%	$215M	$11.2M
16	Steelers	$929M	6%	8%	$198M	$20.0M
17	Packers	$927M	2%	4%	$197M	$20.3M
18	Titans	$922M	4%	14%	$196M	$24.2M
19	Seahawks	$921M	4%	13%	$196M	-$2.6M
20	Bengals	$912M	11%	11%	$194M	$11.7M
21	Colts	$911M	9%	11%	$184M	-$17.3M
22	Rams	$908M	8%	4%	$193M	$17.9M
23	Cardinals	$888M	13%	17%	$189M	$4.6M
24	Lions	$870M	4%	40%	$189M	-$1.8M
25	Saints	$854M	16%	15%	$194M	$25.2M
26	Chargers	$826M	13%	12%	$192M	$19.2M
27	Bills	$821M	9%	9%	$189M	$34.6M
28	Raiders	$812M	10%	7%	$189M	$46.2M
29	Jaguars	$811M	9%	14%	$189M	$22.1M
30	49ers	$799M	9%	13%	$186M	$9.9M
31	Falcons	$796M	9%	34%	$185M	-$3.4M
32	Vikings	$782M	9%	40%	$182M	-$19.1M

PLAYING CARDS: FORBES' Monte Burke writes Cardinals President Michael Bidwill "has put together what his father [Owner William Bidwill] couldn't: a coherent, plausible plan for turning this team into a winner, financially and on the field." The plan includes "a new stadium with a richer share of revenues; the team's first-ever true marketing staff; a tougher-looking redbird mascot; and a reversal of decades of penny-pinching that let star talent go elsewhere and skimped on everything from jockstraps to gym gear." Last season, the team's revenue increased 20% to $189M, and now the team is worth $888M, 13% more than '06. Cardinals GM Rod Graves said, "There's a distinctly different feeling now" (FORBES, 10/1 issue).