Cowboys Again Rank As Forbes' Most Valuable Franchise In NFL

Cowboys Top Forbes' NFL Valuations At $1.65B

The Cowboys again rank as the most valuable franchise in the NFL, increasing 2% in value from last year to $1.65B, according to Badenhausen, Ozanian & Settimi as part of FORBES' annual NFL valuations. Revenue from Cowboys Stadium will total about $285M this year, "more than double last year." Once the "remainder of seats, suites and sponsorships are sold the franchise will be worth in the neighborhood" of $2B. Meanwhile, combined revenues for the league's 32 teams climbed 7% over last year to $7.6B, "primarily due to the league's television deals with CBS, NBC, Fox and ESPN, which combined paid each team" $94M last season. DirecTV's NFL Sunday Ticket "netted each team an additional" $22M in '08, and ticket and concession revenue "increased 6% last season, kicking in an average" of $59M per team. Player costs climbed only 4% to an average of $135M per team for the '08 season, helping make it the league's "third most profitable year ever." The Redskins "remain the most profitable team in the league," posting operating income of $90M, while the average operating income across the league climbed 31% to an average of $32M. But while the average NFL team enterprise value "remained unchanged from a year ago at $1[B], eight teams declined in value," with the Raiders (-7%), Lions (-6%) and Colts (-5%) the "biggest losers." This year marked the "first time in 10 years that any NFL team had gone down in value" (FORBES.com, 9/2).

RK	TEAM	VALUE	1-YR % +/-	DEBT/VALUE	REVENUE	OPERATING INCOME
1	Cowboys	$1.650B	2%	12%	$280M	$9.2M
2	Redskins	$1.550B	1%	15%	$345M	$90.3M
3	Patriots	$1.361B	3%	21%	$302M	$70.9M
4	Giants	$1.183B	0%	55%	$230M	$26.1M
5	Jets	$1.170B	0%	64%	$227M	$24.3M
6	Texans	$1.150B	2%	26%	$256M	$41.5M
7	Eagles	$1.123B	1%	16%	$250M	$48.8M
8	Buccaneers	$1.085B	3%	13%	$241M	$68.9M
9	Bears	$1.082B	2%	9%	$241M	$41.6M
10	Broncos	$1.081B	2%	14%	$240M	$39.9M
11	Ravens	$1.079B	2%	25%	$240M	$44.3M
12	Panthers	$1.049B	1%	18%	$238M	$22.9M
13	Browns	$1.032B	0%	15%	$235M	$20.2M
14	Chiefs	$1.027B	1%	13%	$228M	$52.4M
15	Colts	$1.025B	-5%	4%	$233M	$55.9M
16	Steelers	$1.020B	1%	25%	$235M	$17.8M
17	Packers	$1.019B	0%	2%	$232M	$20.1M
18	Dolphins	$1.015B	-3%	39%	$242M	$26.6M
19	Titans	$1.000B	1%	13%	$232M	$24.4M
20	Seahawks	$994M	-2%	12%	$231M	$-2.4M
21	Bengals	$953M	1%	10%	$222M	$34.9M
22	Saints	$942M	0%	13%	$232M	$30.7M
23	Cardinals	$935M	2%	16%	$223M	$23.9M
24	Chargers	$917M	3%	14%	$224M	$41.6M
25	Rams	$913M	-2%	7%	$217M	$22.3M
26	Bills	$909M	3%	14%	$222M	$39.5M
27	49ers	$875M	1%	14%	$214M	$20.8M
28	Lions	$872M	-5%	40%	$208M	$18.5M
29	Jaguars	$866M	-1%	14%	$217M	$26.9M
30	Falcons	$856M	-2%	32%	$214M	$28.2M
31	Vikings	$835M	0%	38%	$209M	$8.2
32	Raiders	$797M	-7%	7%	$215M	$-5.7
NOTES: Revenues and operating income are for '08 season. Value of team based on current stadium deal (unless new stadium is pending) without deduction for debt (other than stadium debt). Debt/Value includes stadium debt. Revenue is net of stadium revenues used for debt payments. Operating income is earnings before interest, taxes, depreciation and amortization.

ECONOMY SLOWING DOWN LEAGUE: Forbes National Editor Mike Ozanian: "The biggest problem for the NFL is the economy. And to a lesser degree, the slowdown in the stadium boom." Ozanian predicted that the $1.3B Giants/Jets Meadowlands stadium is "probably the last new NFL facility for the near future because of the economy" (N.Y. DAILY NEWS, 9/3). But USA TODAY's Michael Hiestand wrote, "Breathe easy: It will take more than this recession for any NFL owner's private jet to go wheels-up without enough Grey Poupon onboard" (USA TODAY, 9/3).

NFL BILLIONAIRES: Cowboys Owner Jerry Jones ranks atop the list of NFL billionaires, and FORBES' Steven Bertoni wrote he "might be football's best businessman." Jones bought the Cowboys for $150M in '89 "with the multimillion-dollar fortune he made from natural gas drilling in the 1970s," and his return on investment net of debt is 865% based on the team's current value of $1.45B after accounting for debt. Meanwhile, Patriots Owner Bob Kraft "has created both a NFL dynasty and a billion-dollar fortune." Kraft bought the team for $172M in '94, and the team now is worth $1.08B net of debt, a 530% return. Eagles Owner Jeffrey Lurie bought his team for $185M in '94, and the Eagles now are worth $943M net of debt for a 385% return on investment (FORBES.com, 9/2).

TEAM NOTES: In Cleveland, Bill Lubinger noted the Browns rank No. 13 with an estimated value of $1.03B, and while the value is "unchanged from last year," it has "almost doubled since the franchise was acquired." Late Browns Owner Al Lerner bought the team for $530M in '98. Browns President Mike Keenan "wouldn't discuss team finances and said franchise value is really an unknown until it changes hands." Keenan: "You have to find someone willing to buy the team, and the Browns aren't for sale" (Cleveland PLAIN DEALER, 9/3)....In Green Bay, Richard Ryman noted the Packers have the "lowest debt-to-value ratio in the league" at 2%. The Jets and Giants "are the highest," at 68% and 55%, respectively. The Cowboys rank No. 3 at 39%. Ryman wrote a "significant reason for the Packers' low debt ratio is that the $295[M] renovation of Lambeau Field was largely paid for by a 0.5[%] sales tax in Brown County" (MILWAUKEE JOURNAL SENTINEL, 9/3).