Gridiron Grapes

Few people can say they've passed up a deal that would have been worth $1 billion. 

But John Elway is one of them. 

Despite the seemingly missed opportunity, the Hall-of-Fame quarterback never let it hold him back. Instead, he forged ahead, building multiple successful businesses and amassing a nine-figure net worth. 

So how exactly did Elway turn these setbacks into successes?

Who is John Elway?

John Elway was born in 1960 in Port Angeles, Washington, into a football family. 

Growing up, Elway spent his early years in Montana and Washington, where his father coached at the University of Montana and Washington State. 

John Sr. greatly influenced his love for the game and undoubtedly set the stage for Elway's future in professional football.

Elway's high school years began in Pullman, Washington. But, his father took a coaching job at Cal State-Northridge, relocating John and the rest of the family to Los Angeles. 

At Granada Hills Charter High School, Elway quickly made a name for himself as a “dual threat” quarterback, excelling both in running and passing.

By 1979, Elway had numerous scholarship offers but ultimately chose to attend Stanford University, where he would become a star in both football and baseball.

John was eventually drafted by the New York Yankees in the second round of the 1981 MLB Draft. 

He played 42 games as an outfielder for their minor league team before deciding to focus on football.

In the 1983 NFL Draft, Elway was selected first overall by the Baltimore Colts. 

Despite what you would think after being taken number one, Elway was not happy.

Being considered the "next big thing" in football, he was frustrated that the Colts didn't consider his preferred team.

A week later, his wish was granted and he was traded to the Denver Broncos.

Elway's debut with the Broncos in 1983 saw initial struggles, leading to veteran Steve DeBerg relieving him in both of the first two games before taking his spot as starting QB.

But after 6 starts a shoulder injury sidelined DeBerg and Elway regained the starting position for good.

John would go on to lead the Broncos to three Super Bowls in four years (‘87, ‘88, ‘90), falling short of victory each time.

This caused some critics to doubt his abilities.

Yet, perseverance paid off. In 1997, Elway led the Broncos to a Super Bowl win, silencing critics. 

He followed this with another Super Bowl victory in 1998 and capped off his career earning an AP (Associated Press) MVP award.

Elway retired from the NFL after the 1998 season, cementing his legacy of clutch performances and as one of the game's greats.

What is John Elway’s Net Worth?

John Elway’s net worth sits at an impressive $145 million.

Over his 16-year NFL career, he earned a cumulative $45.5 million, with $25.4 million coming from salaries and $20.1 million from signing bonuses.

Elway's star power attracted numerous endorsement deals with companies such as Nestle, Neptune Krill Oil, Sprint, Chevrolet, Shriners Hospitals, and OneFlight, though details of these contracts are not readily available.

While still an active player, Elway founded John Elway Autos, eventually scaling to five car dealerships. 

In 1997, he sold these dealerships to AutoNation for $82.5 million, marking the largest automotive buyout in Colorado's history at the time.

After retirement, Elway returned to the Broncos front office in the 2010s. 

During his tenure, Elway earned approximately $3 million per year, making him the highest-paid general manager as of 2023, behind Bill Belichick at $7.5 million and John Schneider at $3.75 million.

While a net worth of $145 million is impressive, it's far from what it could have been. 

John passed on what could have been the biggest deal of his life.

But he never let the "What if?" hold him back. 

Instead, he used it as fuel to excel as a businessman.

John Elway’s Business Ventures

John Elway operates all his business ventures under Elway Capital, an asset management firm. 

The firm is led by Elway and Bobby Henebry, the President of the company. 

Elway Capital serves as the LLC holding company for his investments, helping to mitigate legal risk.

Sports Ownership

In 1998, just before his final season, Elway was offered the chance to buy 10% of the Denver Broncos for $15 million by owner Pat Bowlen. 

The deal included an option to purchase an additional 10% by forgoing the $21 million in deferred salary he was owed, on the condition that Elway would first serve as Bowlen's special assistant and eventually transition to the role of COO.

Additionally, Elway would have the option to sell back his interest within 2-5 years for $5 million more than his purchase price plus 8% interest per year. 

Lastly, he would have the right of first refusal if Bowlen decided to sell the team. 

Bowlen gave Elway nine months to consider the offer, but Elway allowed the deal to expire in June 1999.

Learn From Your Mistakes

Elway revealed he declined the deal because he didn’t see a future for himself as an executive with the team. 

Instead of purchasing a piece of the Broncos, John invested the same amount in Laundromax, a laundromat franchise aiming to create laundry centers similar to Blockbuster's video rental model. 

Unfortunately, Laundromax turned out to be a Ponzi scheme, resulting in Elway losing over half of his $15 million investment, leaving him with just $6 million.

Over a decade later, Elway returned to the Broncos in 2010 as General Manager and Executive Vice President.

This time as an employee without an ownership stake. 

He eventually stepped down from GM duties in 2021 after winning another Super Bowl with the organization in 2016, and left the organization entirely in 2023 when his contract was not renewed. 

If he had taken the 1998 deal, his stake in the Broncos would be worth approximately $1.02 billion based on the 2023 Forbes estimated value of the team.

You’'ll Never Know if You Don’t Try

Despite passing on the Broncos, Elway ventured into sports ownership by purchasing the Colorado Crush, an Arena Football League (AFL) team, in 2002. 

The team struggled initially, going 2-14 in Elway's first year as an executive before finally turning things around in 2004, finishing 11-5 and making a deep playoff run. 

In 2005, the Crush won the AFL Championship, and although less prestigious than his Super Bowl victories, this marked Elway's third professional football championship.

Elway's ownership of the Crush ended in 2008 when the AFL suspended play to restructure for long-term economic growth. 

When the league resumed in 2010, the Colorado Crush did not return. Financial details of Elway's involvement with the Crush are not readily available, but it likely did not yield significant returns.

Despite these setbacks in sports ownership, Elway still leveraged his personal brand to establish himself as a successful business professional.

The Automotive Industry

John Elway first ventured into the automotive industry with Elway Autos. 

Despite being managed part-time while he was still in the NFL, the Elway auto group quickly expanded from a single location to five dealerships, generating annual sales of over $300 million throughout the 1990s.

In 1997, a year before his NFL retirement, Elway sold his five dealerships to AutoNation for $82 million, paid out in company stock. 

AutoNation continued to leverage the John Elway name for marketing until 2006 when the deal expired. 

Initially, the acquisition boosted AutoNation's stock price to a record high of $43 per share in early 1997, but it soon fell to $30 per share. 

Consequently, Elway's deal was reportedly worth only about $50 million when he decided to sell to Huizenga.

Double Down

In 2004, John Elway re-entered the auto industry under the John Elway Dealership Group. 

He launched a Chrysler Jeep dealership and a Cadillac franchise in Colorado under the Sonic Automotive brand, and two Toyota Scion dealerships in California. 

The group also sells brands such as Cadillac, Bentley, BMW, Chevrolet, Lotus, and Porsche.

Today, Elway remains a prominent figure in the automotive industry, especially in Denver and the surrounding areas. 

It is estimated that his dealerships generate around $210 million in annual revenue.

Elway’s Steakhouses

John owns a chain of modern, fine-dining steakhouses across Colorado. 

Named Best Steakhouse by 5280 Magazine and Westword in 2010, the franchise has expanded to five locations throughout the 2 decades since its inception.

Elway opened the Cherry Creek location in 2004 and expanded shortly after in 2008 with a downtown location in the Ritz Carlton.

In 2012, he opened a location in Vail, his first and only location outside Denver. 

This was followed by a location in Denver International Airport (DIA) Concourse B in 2013, and most recently, a second DIA location in Concourse A in May 2024.

Elway’s Steakhouses are renowned for their excellent service, food, and ambiance, consistently earning 4 to 5-star reviews across multiple food review sites.

Elway also maintains low staff turnover by offering health and dental insurance, paid vacation, and a 401k.

A Surprising Model

Typically, restaurants use airport locations as training grounds to identify high-performing employees who can be transferred to flagship locations. 

However, at Elway’s Steakhouses, employees report wanting to work at the airport locations over the flagship ones in Vail and the Ritz Carlton.

This seems to contradict everything you would think about location and clientele.

So… why?

The branding power of the Elway name, recognized widely due to his legendary NFL career, draws significant attention. 

Add in the heavy traffic of the Denver Airport and long operating hours (7 days a week from 7 am-11 pm), the airport locations ensure a steady flow of customers all day long.

Elway’s Steakhouses generate approximately $15.5 million in annual revenue across their locations, though this figure seems to be before the fifth location was opened.

7 Cellars

John Elway founded 7 Cellars with his long-time business partner, Jeff Sperbeck. 

The duo released their first wines, a Cabernet and Chardonnay, in 2013 and 2014, respectively. 

Today, 7 Cellars produces over 50,000 bottles annually.

Each variety contributes to charitable causes such as Team Rubicon, which trains and deploys veterans to assist in disaster areas, and OneHope, which supports various global organizations.

Success is no Accident

John Elway created 7 Cellars as a synergy to his Steakhouses. 

This strategy allowed restaurant visitors to enjoy his fine wines alongside their meals, similar to Wayne Gretzky's approach to his own restaurant chain and winery.

The major key to Elway’s success? His all-star team selection.

He partnered with legendary Napa Valley winemaker Robert Mondavi Jr., a fourth-generation winemaker with over 30 years of experience. 

This collaboration between a Hall of Fame quarterback and a Hall of Fame winemaker ensures not only high-quality production, but brand prestige.

The Audible

In March 2020, 7 Cellars launched the Farm Collection, offering wines at a more affordable price point without compromising quality. 

However, the Covid-19 pandemic soon disrupted the market. 

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Like an experienced quarterback, Elway called the perfect audible, shifting marketing efforts to promote online sales.

This pivot marked a significant change for the business, with 50% of sales moving online.

With restaurants closed, the team also expanded distribution to liquor stores and outlets like Costco. 

While 80% of sales were in Colorado during 2020-2021, Sperbeck has reported an increase in out-of-state sales.

Although specific revenue figures are unavailable, it is evident that 7 Cellars is thriving with rumors that the company will soon venture into whiskey production, further expanding its product line.

The Success Strategies of John Elway

1. Understand What Makes a Business Successful: Elway recognizes that the people who make up the business are crucial to its success.

2. Super-Team: John partners with fellow legends in his business ventures.

3. Create Synergies: Elway leverages one successful venture to start another, creating synergies between them.

4. Double Down on Your Strengths: After successfully selling his automotive business, Elway re-entered the industry and did it all over again.

The Bottom Line

John Elway's story is a testament to finding and leveraging your strengths. 

Like any great athlete and entrepreneur, Elway has a short memory, never allowing failure or setback  to hinder his progress and growth. 

His approach is both quick and calculated, and he ensures that he surrounds himself with a team of winners.

Elway’s journey demonstrates that even when some ventures don't go as planned, the key to success lies in the ability to adapt, take decisive action, and continuously move forward. 

Whether through his ventures in sports ownership, the automotive industry, his chain of steakhouses, or his winery, Elway has consistently found ways to grow and thrive.