Jerry Jones knew the NFL already had a deal with Reebok, but that didn't stop him from bringing Nike into the Cowboys' orbit. Instead of making Nike a direct Cowboys sponsor, Jones found a way to structure the agreement through Texas Stadium.

Speaking on Bloomberg Originals, Jones explained that his interest in Nike grew after watching Phil Knight turn athletic performance into a powerful story around the product. That idea eventually led Jones to a seven-year Nike deal worth about $2.5 million annually, setting off a major dispute with the NFL.

“When we initially made our deal, he couldn't use Cowboys, or he couldn't use the Star," Jones said. "We just did the deal with the stadium.”

Jones said Nike’s appeal went beyond the shoe itself, as Knight had a different way of presenting performance through the product.

“But the thing that was obvious to me was that he took a shoe or he took performance,” Jones said in a @Bloomberg Originals YouTube video, “or he took performance or perspective performance mentally in a shoe.”

Jones’ interest in Nike soon turned into a deal that challenged the NFL’s existing setup. In 1995, Reebok had the NFL’s Pro Line apparel deal when Jones announced a seven-year Nike sponsorship worth about $2.5 million a year. 

The deal placed Nike’s Swoosh inside Texas Stadium and included plans for a Nike-Cowboys theme park next to it. Jones structured the deal through Texas Stadium. NFL Properties eventually sued Jones, the Cowboys and Texas Stadium for $300 million, and got countersued for $750 million by Jones, eventually settling with its own independent deals in 1996.

The strategy also exposed exactly why the NFL objected. NFL Properties had a league-wide sponsorship arrangement with Reebok, and the league viewed Jones' stadium agreement as an attempt to get around its control of team-related sponsorship rights.

For Jones, the Nike deal was a major business move that ran counter to the NFL’s existing Reebok partnership.

His sponsorship moves soon drew more attention when his separate deals with Pepsi and Dr Pepper at Texas Stadium raised concerns within the NFL.

Jerry Jones' Pepsi Deals Trigger NFL Sponsorship Dispute

The Pepsi and Dr Pepper deals became a problem for the NFL because Coca-Cola was already an official league sponsor. The league argued that Jones’ stadium agreements could also affect its sponsorship and revenue-sharing structure.

A report by Richard Sandomir of The New York Times detailed how the NFL and Jones disagreed over whether Texas Stadium could be treated separately from the Cowboys in sponsorship deals.

NFL Commissioner Paul Tagliabue pushed back against Jones’ approach, arguing that the separate deals could disrupt the league’s partnership model and competitive balance. 

“This isn't about soda pop, sneakers, do-rags or who has a logo on a wristband,” Tagliabue said. “This is a clear attack on a philosophy. If you have a successful philosophy for 75 years, you hold it pretty sacred.” 

The dispute was eventually settled, with NFL Properties withdrawing its $300 million lawsuit and Jones and the Cowboys withdrawing their antitrust counterclaim against the league.

Under the settlement, Texas Stadium was allowed to keep its separate Pepsi, Dr Pepper and American Express deals, while NFL-wide sponsorship rights continued to apply to league activities.

The settlement ended the dispute, allowing Jones to keep his stadium deals while protecting the NFL’s wider sponsorship rights. 

What do you think about Jerry Jones’ sponsorship moves? Let us know!

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Written by

Divyanshi Raj

Edited by

Rudra Dubey