No, getting one back did. You seriously cannot see the logic that merchandise sales for a new franchise would be strong? You can't understand that a market that lost a franchise it supported reasonably well appreciates the return of a franchise to the market and meets it with excitement? Really?
Houston is the 4th largest city in America. I consider that enormous.
Dallas is 9
Detriot is 18
Atlanta is 40
List of United States cities by population - Wikipedia, the free encyclopedia
City population and market size aren't the same thing. A city like Houston is a lot bigger than Boston proper, but Boston's media market is bigger.
Nielsen has Houston ranked 10th in terms of market size, just behind SF/Oak, Atlanta and DC, and just ahead of Detroit, Phoenix and Seattle-Tacoma.
Now, regarding the theory that Houston would enjoy strong merchandise sales, as a new team for a pre-existing football fanbase... while it doesn't look like the NFL ever publicizes the full sales numbers, they do list the top 5 and more recently top 10 teams in jersey sales, and Houston has never cracked the list. What I found interesting were some of the teams that did.
In 2004, the Raiders were coming off their third straight season as the NFL's merchandise sales champs... and the best they ever did in that period was 21st in revenue. Their merchandise sales didn't fall off as fast as you'd think, either -- they were #2 in 2005 and #3 in 2006, before falling off as the losses piled up. The Packers and Steelers are perennial top-five merchandise sales contenders, despite being middle of the pack in revenue. Same think with the Giants, Jets and Bears. So clearly, merchandising sales doesn't really equate to franchise revenue.
Nor, it turns out, does home game attendance. The Patriots, consistently the third highest earner in the NFL these past five years, have ranked either 14th, 15th or 16th in attendance. The Giants and Jets have ranked from 2-4 in that time, despite remaining in the middle in revenues -- though that figures to change with the new stadium. Interestingly, in the 5-10 range, you find teams like Carolina, KC, Denver, Cleveland and Buffalo, which has cracked the top 10 in stadium attendance pretty much every year. So clearly, just getting fans out to the stadium doesn't guarantee high revenues if your stadium doesn't have the premium seating and sales options that Gillette and Reliant do.
So, getting back to Houston -- an expansion team that's had one winning season, never made a splash in merchandise sales, and has decent (usually 11th) stadium attendance, yet has still been one of the top four teams in revenue since its inception. What's Bob McNair's secret? According to
Forbes:
A lot of people scoffed at Forbes 400 member Robert McNair when he paid a record $700 million expansion fee to the other NFL owners in 1999. And they laughed even louder when the billionaire had to pour another $100 million into his franchise before his team ever played its first game. But McNair didn't make his billions by being stupid. Among other things, Houston has the second most Fortune 500 headquarters in the U.S., which has enabled the Texans to rake in a fortune from corporate sponsors. The team's $300 million, 30-year stadium naming rights deal with Reliant Energy is just one example.