The Value of a Losing Team

Even though teams lose, fans keep coming back. It’s about Sundays with your family, even if you know they will lose. And even once the games are over, there are still the draft to watch and crazy trades to follow. For an owner, that willingness to come back has real financial value.

Take the Dallas Cowboys. They finished the 2024 season with seven wins and ten losses. The following year, Forbes valued the franchise at $13 billion, an increase of 29 percent. The team disappointed its fans in wins, but its value grew by billions of dollars. Forbes also estimated that Dallas generated about $1.2 billion in revenue during that losing season. A large market for Cowboys football clearly remained.

The $13 billion figure needs some explanation. It does not mean the Cowboys earned that much money. Revenue measures the money coming into a business before expenses, and profit is what remains after expenses. A valuation estimates what the business itself is worth. Anyone buying the Cowboys would be paying for the opportunity to earn money over many seasons. They would also be buying the team’s name, its existing following, and its place in the NFL.

A disappointing record could matter to that buyer without changing their entire view of the purchase. A roster can improve. A different coach might get better results. The harder thing to build is an audience that stays interested through those changes. An established franchise already has people who care about what happens to it, including people who have spent years complaining about it.

For someone who grew up watching a team with their family, choosing a different team would not feel the same. They want their team to get better. Even following the draft becomes part of supporting it because a new player gives them something to look forward to after a disappointing year. The season ends, but their interest carries into the next one.

There are limits to what that loyalty is worth financially. Tickets cost money, and a fan might not want to pay to watch another loss. Watching from home lets them stay involved without that large expense. The team loses a possible ticket sale, though it still has a viewer. That helps explain why attendance and interest do not always fall together.

NFL teams also receive substantial income through national revenue sharing. Sports Business Journal reported that each team received $432.6 million in national revenue for the fiscal year covered by the Packers’ 2025 financial results. The payment was 7.5 percent higher than the previous year. A team therefore benefits from the league’s popularity even when its own season goes poorly. Its income does not depend entirely on filling its stadium.

Broadcasting agreements help support that income. In 2021, the NFL announced media deals extending through the 2033 season. For someone considering ownership, agreements covering years of games make future income easier to plan around. Viewers also have reasons to watch games involving losing teams. They may support the opponent or want to follow a particular player. Even a game with little importance to the standings can matter to the people watching.

Buying a team is also an unusual opportunity because there are so few available. Someone with enough money can open a new restaurant. They cannot simply create another NFL franchise and start playing games. Expansion requires the league’s agreement, and purchasing an existing team requires an owner willing to sell and the necessary approvals. A bad season does not make that opportunity any less rare.

Other income depends on the team’s individual business arrangements. Sponsorships, premium seating, merchandise, concessions, and stadium naming rights can all contribute. A franchise with a large following may remain attractive to companies during a losing season because those companies still want to reach its fans. Teams with similar records can consequently have very different financial results.

Fans continue to get frustrated when owners make money while the team loses because they paid to support it and expect results. Spending can help a team improve, but injuries and disappointing players mean wins are never guaranteed.

Fans expect owners to work on fixing overall problems, from the stadium to the team as a whole. But being loyal doesn't mean you need to agree with every decision. You are not the owner, but you are there to support and show your loyalty to a team you love. Owners still deserve to profit while still facing criticism for how they run the team.

When a team wins, not only is the team giving the fans the best experience, but it's also helping grow the team as a business. But football is more than just sitting through a game that lasts three hours. It's about the family traditions and supporting a team through all of its hardships and bad stretches. Fans return for more than just the game. It's the loyalty that brings them back week after week, and this is why the team remains profitable despite having a losing record.