The Dallas Cowboys saw a huge increase in revenue in 2009, growing from $US280 million to $US420 million in a single year according to Forbes.com. That was the year the Cowboys’ new stadium opened showing that a new stadium can be a big boom to an NFL team’s bottom line.
One benefit to a new stadium is the ability to sell “personal seat licenses.” The Cowboys charged fans up to $US150,000 for these licenses which give fans first dibs on buying season tickets each year.
While that is a one-time a boost to revenue, the biggest benefit of a new stadium is the ability to sell more luxury suites. While most revenue in the NFL is evenly distributed among teams — this is why a team in tiny Green Bay can be competitive in the NFL but would never work in another sport — revenue from luxury suites and club seating is not shared. So it is beneficial to teams to have stadiums with as many suites as possible.
The new AT&T stadium has 342 luxury suites that sell for a minimum of $US342,000 and as much as $US900,000 per year. If the Cowboys sell every suite that means a minimum of $US76.6 million in revenue that the Cowboys don’t have to share with other clubs.
The result is revenue that has doubled in the last five years after growing just 50% in the final seven years of the old stadium.
NOW WATCH: Briefing videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.