Seeking out New Business Opportunities

Fear of damaging the Cowboys brand by extending its reach was never a concern for Jerry Jones. Every time he undertook a new marketing program he did so by first ensuring that his risks had been mitigated and then by determining that the marketing opportunity would add value to his core brand.

In 1995, Jones entered into a 10-year contract between Texas Stadium and Pepsi for a reported $40 million. This arrangement angered the NFL, which had a leaguewide agreement with Coke that gave the company exclusive rights to NFL marks, including all the teams. Jones countered by reminding the NFL that the deal he struck included the stadium, and not the Cowboys directly. Despite the NFL's tremendous backlash and litigation between Jones and the league, Jones agreed to similar arrangements with Nike and American Express.

Strong corporate leaders understand Jones' basic premise that strategies that are well reasoned, communicated, and implemented build shareholder value. These leaders are also aware that vigilant brand management is required when rebuilding an organization.

In 2002, Jones debuted his second football team, the Dallas Desperados, which play in the Arena Football League (AFL). To more closely link the AFL team to the Cowboys, Jones incorporated the Cowboys famous star logo into that of the Desperados.

Brand extensions, whether attached to a sports team or packaged goods conglomerate, can also be utilized to develop the next generation of management. Jones had the entire Cowboys staff involved in the launch of the Desperados and is paying keen attention to the team's management because some of those employees might work out so well that he will want them to work directly for the Cowboys. For example, many believe Jones' son, Jerry Jones, Jr., the Desperados president and GM will eventually take on an even higher profile role with his father's team.

Jones has extended this managerial training ground beyond the front office. He hired Cowboys special teams coach Joe Avezzano, once believed to be a leading candidate to be the Cowboys head coach, to be the Desperados head coach.

League surveys have indicated that a majority percentage of AFL fans are already NFL fans, whereas only about half of NFL fans are AFL fans. This customer dynamic will enable both teams to leverage the strengths of their committed fan bases. For instance, NFL fans that say they can't afford to attend a Cowboys game will be able to attend affordable, family-friendly professional football. Although the Cowboys' average ticket price hovers around $50, a Desperados fan could purchase a seven-game season ticket package for a total of $35.

Fans bought their tickets and gear. In their first season, the Desperados were among the leaders in home attendance more than 12,000 fans per game and the team advanced to the quarterfinals in the playoffs. Thanks to the team's performance and its leveraging the Cowboys retail outlets, the Desperados outsold the most of the 16-team league in terms of merchandise sales.

Jones continues to seek out additional subbrands. He has made it known that he wants to buy five or six additional franchises in another arena football league and scatter them around Texas and Mexico in the next several years. His research shows that he has reason to do it; according to Jones, the Cowboys are followed and favored by a significant percentage of Hispanics throughout the regions.

Jones never stops thinking about the next opportunity to extend the brand as evidenced by his 2001 opening of the Cowboys golf course. Jones believes the course will become as important a part of his daily business activities as Texas Stadium. He thinks the golf course will become popular because duffers won't be able to complete a round of golf without running into some ex-Cowboy, current team member, or somebody involved with the Cowboy organization.