Most sports capital flows into one of two places: a meaningful stake in a franchise, or real estate built near a team someone else controls.

That separation matters more than most investors realize. When ownership is fragmented, value leaks.

When ownership is unified, value compounds.

The team brings fans, sponsors, and media attention while the real estate converts that attention into revenue through offices, apartments, hotels, retail, events, and parking.

Each side reinforces the other:

The opportunity lies in acquiring and developing high-barrier districts where unified ownership across operating assets and real estate allows value to compound rather than fragment.

Jerry Jones, owner of the Dallas Cowboys, built an operating platform.

In 1989, Jones bought the Dallas Cowboys for $150 million. The team had one winning season in six years. Today, Forbes values the franchise at roughly $13 billion: the most valuable sports franchise in the world for the 19th consecutive year.

What gets less attention is what Jones built in Frisco, Texas.

The Star is a 91-acre mixed-use district that Jones privately financed in Frisco. It combines the Cowboys' headquarters and training facilities with commercial real estate, hospitality, residential units, healthcare facilities, and a community event venue.

CNBC explicitly excludes The Star from the Cowboys' franchise valuation, so Jones controls a separate multi-billion-dollar asset alongside the most profitable team in sports.

The district includes over 1.5 million square feet of office space, 225,000 square feet of retail, a 300-room Omni Hotel, 170 luxury apartments, a 300,000-square-foot medical center, and a 12,000-seat event center that expands to 22,000 for concerts.

Major employers relocated thousands of jobs to the site. Keurig Dr Pepper moved its headquarters there, TIAA brought 2,000 employees, and Comerica Bank followed. 

The Cowboys became the anchor tenant of what is effectively a corporate campus and destination district.

The key distinction is that Jones did not rely on game days, but rather he built a 365-day economic engine.

Traditional sports investing fragments returns.

A minority team stake exposes you to shared league revenue and long-term appreciation, but limited control. A naming rights deal captures a single contract. Adjacent real estate benefits from traffic but remains dependent on decisions made by others.

When one owner controls both the team and the surrounding district, revenue stacks instead of fragments.

Team operations generate tickets, sponsorships, premium seating, and media exposure. The Cowboys Club sold 800 memberships at $4,500 plus $350 per month before the facility even opened, giving members year-round access to practice viewing and exclusive amenities.

The real estate captures office leases, residential rent, hotel stays, retail spend, events, and parking. Tax efficiency improves through depreciation and long-term asset ownership.

The Cowboys generated $1.27 billion in revenue in 2024, at least $400 million more than any other NFL team. Operating income was $629 million. That's more profit than 16 NFL teams generated in total revenue.

The result is asymmetry. No longer betting on wins and losses alone, but rather monetizing attention, relevance, and time.

The constraint is not capital. It is mandate alignment.

Large private equity firms can remain siloed. Sports investing lives in one bucket. Real estate lives in another. Decision-making is sequential, not integrated. By the time capital aligns, the opportunity is often gone or efficiently priced.

Platforms backed by family office capital can operate differently. They can deploy across asset classes in one decision. They can develop in phases, recycle capital, and wait for the right exit window. They can focus on markets where growth is emerging rather than fully priced.

That flexibility is what keeps the model mispriced.

Sports valuations are at historic highs. Mixed-use districts anchored by sports continue to demonstrate premium performance. Regulatory barriers are shifting. Municipalities are actively seeking catalytic projects that combine economic development with community identity. 

The Star's public-private partnership with Frisco and the local school district shows how cities collaborate on transformative projects.

Secondary markets are where these forces converge.

Frisco was not a major city, but it was a fast-growing one. Demand existed, but infrastructure lagged. The development became part of what Frisco called its "$5 Billion Mile" of mixed-use projects.

That gap is where value is created. Multiple expansion paths through real estate appreciation, franchise value growth, and corporate relocations.

Replication of this model requires aligned ownership, patient capital, credibility with municipalities, access to teams, and the ability to coordinate across operating companies and property companies from day one.

Very few investors are structured for that. Fewer are positioned in markets where competition is limited and long-term growth is real.

Jerry Jones did not just build real estate. He built leverage.

By controlling both the franchise and the land beneath it, he created a compounding system that produces value independent of league revenue sharing and seasonal performance. The Cowboys generate more profit than most teams generate in total revenue. The Star continues to expand with corporate tenants and community usage that has nothing to do with game day.

For investors who understand that the next generation of valuable sports assets may emerge in secondary markets where you can own the team and the district together, the opportunity remains compelling.

The model is proven, but the execution is scarce.

This newsletter is for informational and educational purposes only and does not constitute investment advice, an offer to sell, or a solicitation of an offer to buy any securities. All financial data presented represents historical performance of specific venues and should not be construed as indicative of future results. Past performance does not guarantee future results. Investment in sports venues and related assets involves significant risk, including potential loss of principal. The behavioral economics concepts discussed are based on academic research and historical case studies that may not apply to all situations or guarantee similar outcomes. No representation is made that any investment approach discussed herein will or is likely to achieve results similar to those shown. Any investment decision should be made only after careful consideration of all relevant factors and consultation with qualified financial, tax, and legal advisors. Momentous Sports and Magnolia Hill Partners make no representations or warranties regarding the accuracy or completeness of this information and disclaim any liability arising from your use of this information. This material has not been prepared in accordance with requirements designed to ensure unbiased reporting, and there are no restrictions on trading in the securities discussed herein prior to publication. For qualified accredited investors interested in learning more about our educational materials and investment approach, please contact us directly for a confidential discussion.