February 18, 2025 • 59min
#379 Jerry Jones (Dallas Cowboys)
Founders
Key Takeaways
- Relentless Drive and Risk Tolerance - Jerry Jones demonstrated an extraordinary appetite for risk and an intense drive to succeed from a very young age
- Early Business Education - Started working in his father's grocery store at age 7, learning sales, customer service and business fundamentals
- Pattern of High-Risk Deals - Consistently took on risky ventures others passed on, from oil wells to buying the Dallas Cowboys
- Business Turnaround - Transformed the Cowboys from losing $9M/year to making $30M+ in profits within a few years through revenue maximization and cost control
- Sales Ability - Exceptional salesman from childhood through his entire career
- Father's Influence - His father Pat Jones was the most influential person in his life, teaching him work ethic and risk-taking
Introduction
This episode explores the life and business career of Jerry Jones, owner of the Dallas Cowboys, based on the book "King of the Cowboys: The Life and Times of Jerry Jones" by Jim Dent. The story follows Jones from his early days working in his father's grocery store through his successful ventures in oil and gas, ultimately leading to his purchase and transformation of the Dallas Cowboys franchise.
Topics Discussed
Early Life and Family Business (00:00)
- Started working at age 7 in his father's grocery store
- Learned business fundamentals and salesmanship from an early age
- Father Pat Jones was a born promoter and risk-taker who heavily influenced Jerry
- "My dad said, I'm gonna teach you to work so that you don't mind working and it will become part of your personality when you grow up" - Jerry Jones
Early Career and Business Ventures (26:03)
- Tried multiple businesses including:
- Insurance (helping father's company)
- Real estate investments
- Pizza franchises
- Chicken restaurants
- Experienced several failures and financial difficulties in his 20s
- Demonstrated remarkable persistence despite setbacks
- "There was so many times when I was down on one knee. One of the hardest things I would learn would be keeping my head together during those tough times." - Jerry Jones
Oil and Gas Success (32:04)
- First Major Oil Success
- Partnered with Bill Sparks on a deal others rejected
- First well worth over $4 million
- Hit oil in first 15 consecutive wells
- Natural Gas Ventures
- Drilled over 200 wells with only one failure
- Made $80 million on first two natural gas wells
- Sold Arcoma Production for $175 million in 1987
Buying the Dallas Cowboys (44:05)
- Purchase Details
- Bought team for $140 million in 1989
- Used $90 million cash and borrowed $50 million
- Team had lost $9 million the previous year
- High-Risk Investment
- 75 other potential buyers had passed
- Financial advisors called it "financial suicide"
- Stadium luxury suites mostly empty
- Attendance down 25%
Business Turnaround Strategy (52:06)
- Revenue Maximization
- Sold previously empty luxury suites
- Moved press box to sell premium seating
- Added stadium advertising
- Secured alcohol sales licenses
- Cost Control
- Cut non-revenue producing positions
- Focused on lean operations
- Hired sales and promotion staff
Leadership Style and Personality (56:07)
- Key Traits
- Intense drive and energy
- Willingness to take massive risks
- Strong sales ability
- Decisive decision-making
- Management Philosophy
- Demands complete control
- Partners must be comfortable in number two role
- Focuses on revenue generation
- "Life is not about smelling the roses. With Jerry, life is hard work." - Associate's description of Jones
Conclusion
Jerry Jones exemplifies the transformative power of relentless drive, risk-taking, and business acumen. From his early exposure to business in his father's grocery store through his successful ventures in oil and gas, Jones consistently demonstrated an extraordinary appetite for risk and ability to turn around struggling operations. His purchase and transformation of the Dallas Cowboys from a money-losing franchise to one of the most valuable sports teams in the world stands as a testament to his business abilities and vision. The story of Jerry Jones illustrates how combining intense drive with strategic thinking and a willingness to take calculated risks can lead to extraordinary success.