“Jerry Jones Defends Cautious Approach in Cowboys Contract Negotiations, Cites Economic Expertise”
To justify the Dallas Cowboys’ slow negotiations with quarterback Dak Prescott and holdout receiver CeeDee Lamb, owner Jerry Jones defended his approach and expertise in understanding the NFL’s economic future.
Jones claimed, “No one in the NFL knows this better than me. No one.”
“You need to anticipate where the revenue will be in the future,” Jones said. “I believe I have a better grasp than anyone alive on where the revenue will be in four, five, six years. I’ve dedicated a lot of time to this. Without understanding future revenue, you can’t predict the salary cap. It’s almost an art to look ahead.
“We’ve assumed revenue will rise, and that’s built into these contracts. But COVID caused revenue to drop. Am I optimistic? More than ever. But there’s one major risk that could significantly reduce revenue.”
The NFL generated $12 billion in revenue during the 2020 season due to the COVID-19 pandemic, down from an estimated $16.5 billion pre-pandemic and a $4 billion decrease from 2019, according to the Sports Business Journal’s Ben Fischer.
League attendance dropped 92% in 2020, causing the NFL salary cap to fall to $182.5 million in 2021, an 8% decrease from 2020. The 2024 salary cap is a record $255.4 million, showing the NFL’s recovery from the pandemic.
Despite being optimistic about the league’s current state, Jones warns that another pandemic-like event could have a severe impact, citing the recent $4.8 billion “Sunday Ticket” lawsuit.
A U.S. District Court jury ordered the NFL to pay nearly $4.8 billion in damages for violating antitrust laws by distributing out-of-market Sunday games through a premium subscription service, affecting 2.4 million residential subscribers and 48,000 businesses from 2011 to 2022 on DirecTV. The NFL plans to appeal the verdict.
Jones pointed to the “Sunday Ticket” issue as a reason for caution.
“Well, I’m just saying, we had a little situation in Los Angeles,” Jones said. “I was the league’s only witness.”
He explained this is why he feels comfortable waiting on deals for Prescott, Lamb, and possibly edge rusher Micah Parsons.
“That’s exactly what I’m trying to convey,” Jones said. “I have a better sense of future league revenues. If I seem optimistic, it’s because I think the outlook is good. If I seem cautious, it’s because I’m being careful. I’m the best at predicting future trends. In terms of instincts and reading the situation, I’m better than anyone.”