Tom Benson, the late New Orleans businessman, acquired the Saints in 1987 for a then-record $70 million. This move transformed the franchise and set a new benchmark for NFL ownership valuations at the time.
Below is a detailed breakdown of the purchase, covering the deal structure, market context, and long term impact on the team and the city.
| Acquisition Year | Purchase Price | Seller | Key Terms |
|---|---|---|---|
| 1987 | $70 million | Delaney Sports & Entertainment | Assumption of debt and installment payments |
| Ownership Group | Tom Benson (primary owner) | Bank consortium & private investors | Contingent on stadium and league approval |
| Inflation Adjusted (2024) | ~$185 million | — | Reflects modern dollar value for comparison |
| Subsequent Sales | Sale to Gayle Benson (2018) | Tom Benson Estate | Valued above $500 million posthumously |
Tom Benson Background and Motivation
Tom Benson built a fortune in the car dealership industry before targeting the Saints. His motivation combined business opportunity with a deep personal tie to New Orleans, which influenced how much did tom benson pay for the saints relative to market conditions in the late 1980s.
He saw the purchase as both a civic duty and a long term investment, betting that the city would rally around the team despite earlier struggles.
Market Context and NFL Values in 1987
In the mid 1980s, NFL team valuations were rising sharply, but most owners still treated franchises as regional businesses rather than global brands. The $70 million price tag was high for the era, yet it reflected the league’s growth potential and the Saints’ untapped market in New Orleans.
Tom Benson negotiated a mix of cash and assumed liabilities, which made the deal feasible without requiring full upfront capital.
Financial Structure and Payment Terms
Breakdown of the Purchase
The acquisition relied on a blend of bank financing and seller financing. This allowed Benson to preserve liquidity while committing to scheduled payments backed by future Saints revenue streams.
Long Term Impact on the Saints and New Orleans
From Struggle to Stability
Under Benson’s ownership, the Saints stabilized financially, invested in scouting, and eventually reached the Super Bowl. The initial $70 million commitment laid the foundation for sustained value creation and community identity.
Legacy and Current Valuation
Today, the franchise is worth multiple billions, and the story of how much did tom benson pay for the saints serves as a benchmark for early era NFL investments. The Benson family’s long term stewardship is widely cited as a turning point for the organization.
Key Takeaways
- Purchase price of $70 million in 1987 equates to roughly $185 million today.
- Mixed financing structure made the acquisition viable.
- Long term stewardship turned a struggling team into a Super Bowl champion.
- The deal set a precedent for future NFL valuations in emerging markets.
- Community impact extended beyond sports into local economic development.
FAQ
Reader questions
Why was the price so high compared to earlier Saints offers?
Benson’s premium reflected league wide valuation growth and his confidence in New Orleans as a sustainable market, plus the strategic value of owning an expansion era franchise.
Did Tom Benson pay cash upfront or use financing?
He used a combination of cash, bank loans, and seller financed notes, allowing the purchase while managing risk and preserving capital.
How did the purchase affect the local economy in New Orleans?
The stable ownership spurred investments in infrastructure, jobs, and tourism on game days, amplifying the economic impact far beyond the ticket sales figures.
What happened to the ownership after Tom Benson passed away?
Control transitioned to his widow, Gayle Benson, in 2018, with the franchise value having appreciated to well over half a billion dollars.