Internal Changes and Marketing

With management, leadership, and players in place, Jones turned his attention to the ongoing management and marketing of the team.

Like any company, the Cowboys were now in a position to scrutinize and adjust their strategy. They reevaluated their objectives, cost strategy, target customers, quality programs, and how they would handle future planning to sustain growth.

Jones undertook programs to cut costs while improving the team's connection to fans. The Cowboys had 109 nonathlete employees on the payroll, compared to the Cincinnati Bengals' 28. He gutted much of middle management and plowed the savings into sales and marketing programs designed to increase lagging attendance and secure sponsors.

He even relocated the team's training camp to Texas from California in an effort to generate fan interest. More than 100,000 fans attended workouts, and more than 400 media credentials were issued in three weeks time.

He complemented these moves by reducing certain ticket costs in an effort to demonstrate his commitment to fans and show them that he understood the long-term value in keeping his product affordable to "everyday" fans.

Further belt tightening was evident as Jones forced outside vendors, including those who printed tickets and programs, arranged training room supplies, and insurance, to begin bidding for the Cowboys account. Rather than simply staying with vendors because of their long-standing relationship with the team, the Cowboys sent a clear message that Jones was going to run a tight financial ship as he struggled to turn a profit.

Such belt tightening would not be limited to those servicing the team. Employee use of complimentary game tickets and company cars were also included in the excesses that Jones quickly reined in. In short, Jones was hell-bent on putting a stop to what he viewed as abusive practices. His critics said that he was almost too profit motivated, not giving employees bonuses when they deserved them and not treating former employees, especially championship Cowboys players, with the respect many felt they deserved.

The cutbacks might have seemed like a cheap and unnecessary move to those on the outside, but during a company's reorganization, the primary opinions that matter are those of company shareholders and employees. Businesses must communicate that financial constraints are for the good of the organization and that budget cuts will contribute to reestablishing a successful company if morale and motivation are to be maintained.

Making sure that employees feel involved in the company's progress during periods of change is critical. Look no further than the quality of service from employee-owned organizations such as regional supermarkets like Publix (126,000 employees) and Hy-Vee (46,000 employees).

At Publix, workers benefit by receiving stock. Hy-Vee gives its workers a share in profits through a trust fund and also distributes bonuses and commissions based on each store's individual performance.

Because of their cleanliness, courtesy, checkouts, and prices, both Publix and Hy-Vee were chosen among the best places to work in the United States by Fortune magazine and Consumer Reports, respectively. Employees, regardless of industry, will perform better and be more dedicated to the cause when they are included in the process.

When St. Louis Rams quarterback Kurt Warner was cut from the Green Bay Packers in 1994, he went back home to Cedar Rapids, Iowa, where he worked at Hy-Vee stocking the shelves at minimum wage ($5.50 an hour). From there he went on to star in the Arena Football League before heading off to play in the NFL Europe and, eventually, in the NFL where he earned MVP honors in Super Bowl XXXVI.

Jones' restructuring of his executive and coaching staffs, his commitment to reduce waste within the organization, revamp the player roster, and capitalize on anticipated trends in TV revenue (the revenue distributed to each team based on an 84 percent increase in the league's new TV contracts provided Jones added financial latitude) enabled him to turn the franchise around.

He made himself the top decision maker and gave his sons Stephen (executive vice president and director of player personnel) and Jerry Jr. (chief marketing officer) top positions in the front office. Nepotism, which is rampant throughout sports, poses problems in many organizations, particularly if those given positions lack experience and the respect of their colleagues.

Fortunately for Jones, the other members of the Cowboys "family" accepted his sons. Plus, as with any organization, including the Pittsburgh Steelers, which have been run by the Rooney family for three generations, there's nothing wrong with nepotism if the heirs are qualified.

By 1990, the Cowboys had improved their record to 7-9. This was followed a year later by an 11-5 season, including a playoff victory. In 1992, in only Jones' fourth year as owner, the Cowboys posted a 13-3 record and beat the Buffalo Bills in Super Bowl XXVII, his first of three championships in the decade.

Not surprisingly, the Cowboys financial situation improved dramatically as evidenced by a 32 percent increase in estimated franchise value between 1990 and 1994. In 1994, Financial World magazine proclaimed the Cowboys the most valuable team in the NFL, worth an estimated $238 million. In 2001, the team was valued by Forbes magazine at $743 million, slightly behind the Washington Redskins. One difference: The Redskins' owner, Daniel Snyder, paid $800 million for his team.



On the Ball. What You Can Learn About Business from America's Sports Leaders
On the Ball: What You Can Learn About Business From Americas Sports Leaders
ISBN: 013100963X
EAN: 2147483647
Year: 2003
Pages: 93

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