Tuesday, January 4, 2011

The Power of a Brand

The Dallas Cowboys won their final game of the regular season last Sunday which cost them a better position in the 2011 draft. In Monday's Star-Telegram article, Jerry Jones said he was happy with the win.

" I would have rather have the positive of the last-game win than three or four slots in the draft, even though the Eagles were not at full strength."

Is this a smart decision by the owner? Is the opportunity cost of the win better for the team?

I believe the win is great for the team both philosophically and economically. Winning against the long time rival Eagles (even if it was their second stringers) was a statement to the football world that they were not backing down and mailing it in. This helps team's atmosphere in such a tumultuous season. If the Cowboys give the appearance of believing in themselves then the fans will begin/continue to believe, which is the whole point of the business of football...Merchandising your brand! If confidence is communicated it will be received; therefore, driving the demand for such a brand. Yes the win cost them a few spots in the draft (in which they might get the same player if they where in a higher spot anyway) but it propelled their marketing machine forward.

In my opinion, the win will eventually, through Jerry Jone's marketing they will off set the cost of the draft choices or even come out better. The market demand for the Cowboys franchise may have wavered this year but it is still one of the strongest selling sports team in history. You still see people with Cowboys jerseys every Sunday. I am curious to see what some of the marketing financials for the Cowboys look like. What is the percentage breakdown between merchandise, ticket sales, payroll and operational cost of the stadium for one game?

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