The Texans are expected to lose to the Dallas Cowboys by $22 million.

The idea of one team losing a significant financial sum to another in the world of professional sports may seem unusual, especially when it involves two franchises with strong fan bases like the Houston Texans and Dallas Cowboys. However, this financial forecast—where the Texans are expected to lose by $22 million to the Cowboys—speaks not just to an on-field outcome, but to broader financial metrics, revenue sharing, and business strategies that govern the NFL. In this article, we will explore the reasons behind this expected financial loss, examining factors ranging from team performance and revenue generation to salary cap implications, media deals, and the economics of being an NFL franchise in a competitive marketplace.

The Texans vs. Cowboys: A Financial Comparison

To understand why the Texans are projected to lose $22 million to the Dallas Cowboys, it’s important to look at the key financial metrics that drive NFL franchises. While NFL teams compete on the field, the financial side of the league is often just as crucial to their success in the long run. Teams that generate more revenue and manage their expenses better tend to have more flexibility in terms of player acquisitions, coaching staff, and overall competitiveness. Conversely, teams struggling financially can face significant challenges in improving their rosters and keeping up with the competition.

The Dallas Cowboys, often referred to as “America’s Team,” are widely recognized as one of the most profitable sports franchises in the world. According to Forbes, the Cowboys are consistently ranked as the most valuable NFL team, with an estimated worth of over $8 billion in 2024. The team’s financial success can be attributed to various factors, including a rich history, large national fanbase, lucrative sponsorship deals, and an incredible stadium (AT&T Stadium, one of the most expensive and iconic sports venues in the world). In addition, the Cowboys benefit from a significant share of league-wide media revenue, including television deals that benefit all teams, but which disproportionately affect top-performing, high-revenue teams.

By contrast, the Houston Texans, while a competitive franchise, do not yet have the same level of financial dominance or sustained revenue generation as the Cowboys. Since their inception in 2002, the Texans have had moments of success but have generally struggled to maintain a high level of consistent performance. As a result, their revenue generation has not matched that of the Cowboys, leading to a significant difference in the financial outlook for both teams.

Revenue Streams: The Big Difference

A crucial reason for the financial disparity between the Cowboys and the Texans lies in their revenue streams. In the NFL, teams generate money from several key sources:

1. Gate Receipts and Ticket Sales: Ticket sales are a primary source of income for NFL teams, and the Cowboys enjoy an advantage here due to their massive stadium (AT&T Stadium), which holds over 80,000 fans. The Cowboys regularly sell out their games, often with additional revenue from premium seating, luxury suites, and club-level access. In contrast, the Texans, while having a solid home base in Houston, face more challenges in consistently filling their stadium to the same degree, particularly during seasons when the team struggles.
2. Sponsorship and Advertising: Sponsorships and advertising deals are also a huge financial contributor to NFL teams. The Cowboys, with their national appeal, attract some of the most lucrative sponsorships, which include partnerships with major brands like Pepsi, AT&T, Nike, and Ford. These companies pay handsomely to have their brands associated with one of the league’s most recognized franchises. The Texans, while they have a good local fan base, have not yet been able to secure the same level of high-profile partnerships and sponsorships.
3. Broadcast and Media Rights: The NFL’s media rights deals, including television contracts with networks like CBS, NBC, ESPN, and Fox, are another massive revenue stream for all teams. However, the distribution of these funds is not equal. Teams like the Cowboys, which consistently appear in high-profile games, including primetime matchups and the Super Bowl, see a greater financial return from these media deals. The Texans, while benefiting from the league’s revenue-sharing system, do not generate the same level of media buzz or national interest, which affects their earnings.
4. Merchandise Sales: The Cowboys are renowned for their merchandise sales, with fans across the country buying jerseys, hats, and other memorabilia featuring the team’s iconic star logo. The Cowboys’ brand is so strong that even fans who aren’t necessarily die-hard followers still purchase merchandise, creating a consistent revenue stream. The Texans, while they have a dedicated fan base, do not have the same level of nationwide merchandise sales, which limits their ability to profit from this source.

Salary Cap and Player Performance

While revenue generation plays a significant role in the financial outlook for any NFL team, the salary cap is another key factor in determining a team’s financial position. The NFL operates under a salary cap system, which limits how much teams can spend on player salaries. This cap is designed to create a level playing field, but it also forces teams to manage their spending wisely.

The Cowboys, with their financial strength, are able to spend aggressively on top-tier players, making moves to retain key assets such as Dak Prescott, Micah Parsons, and CeeDee Lamb, while also investing in free agents and maintaining depth in critical positions. As a result, the Cowboys have maintained a highly competitive roster, which allows them to stay relevant in the playoff hunt and continue to generate revenue from winning seasons.

The Texans, by comparison, have struggled to keep their roster competitive, particularly in recent seasons. Despite their efforts to rebuild, the team has had issues with player development, drafting, and retaining star players, which has contributed to subpar on-field performances. A losing record means fewer home games, less merchandise revenue, and a lack of national media exposure—further exacerbating the financial gap between them and the Cowboys.

The Impact of National and Regional TV Rights

The NFL’s national television contracts contribute significantly to each team’s bottom line, but local television deals can also have a huge impact. The Cowboys are a top draw on national television and frequently appear in primetime games. As a result, they receive a greater share of the league’s revenue from national broadcast deals. However, the Cowboys also generate additional revenue from local TV rights, as they are one of the few teams with the leverage to negotiate their own broadcast deals, which significantly boosts their overall earnings.

In contrast, the Texans rely more on the league’s revenue-sharing model, which, while fair and equitable, does not offer the same opportunity for individual franchises to secure lucrative local television deals. As a result, the Texans are more reliant on the collective bargaining that benefits all NFL teams, leading to a relatively smaller slice of the pie compared to the Cowboys.

Fan Base and Market Size

Fan base size and loyalty are also major contributors to a team’s financial outlook. The Cowboys have a national following, with fans in every corner of the United States, and their appeal extends beyond state lines due to their historic success, legendary players, and vast media presence. The size of their fan base allows them to sell more tickets, merchandise, and advertising spaces, which translates to greater revenue.

The Texans, while having a dedicated and passionate fan base in Houston, are operating in a much smaller market. Houston is the fourth-largest city in the United States, and while it has a rich sports history and strong local support for the Texans, it cannot compete with the nationwide appeal of the Cowboys. The relative size of the market means that the Texans do not have access to the same financial windfalls that come from a massive, geographically widespread fan base.