Kansas City Chiefs’ Patrick Mahomes and Travis Kelce celebrate a 2022 victory.
David Ulett | Getty
An NFL team that has won three of the last five Super Bowls is worth less than a team in the league that has had two playoff droughts.
this Kansas City Chiefs, According to statistics, the NFL’s current dynasty ranks only 18th in the league with a value of $6.07 billion. CNBC’s official 2024 NFL team valuations.
That puts the franchise well below $7.35 billion new york jets, They haven’t made the playoffs since the 2010 season and are a few spots behind the $6.2 billion Denver Broncos, They haven’t made the playoffs since the 2015 season and are 1-9 against the Chiefs since 2019.
But making the playoffs, or even dominating the playoffs, doesn’t bring as much value-driven revenue to a team as you might think.
The bulk of a team’s revenue in a given season comes from the ballooning media rights fees the NFL charges for its games. According to statistics, in the 2023 season, each team will receive an average of more than $350 million in media rights fees from the league, which is far more than half of the annual revenue of most NFL teams. CNBC report and data analysis. The Chiefs had $590 million in revenue last season.
In addition, the majority of proceeds from postseason ticket sales are donated to the league to defray expenses. Home teams get stipends, but hosting playoff games (the Chiefs have done so 10 times in the past five years) doesn’t do much for the actual gate revenue the team pockets. Clubs receive a much larger share of postseason ticket sales than leagues like the NBA and NHL.
Stadium ownership and operation is also a lucrative source of revenue for NFL teams. dallas cowboys Owner Jerry Jones has a big money blueprint that he’s not sharing with the rest of the league, and a key part of that comes from sponsorship deals and non-football activities at AT&T Stadium, which Jones owns operating rights arrive.
The Chiefs can’t follow that playbook, at least not yet. The team is a tenant of Arrowhead Stadium and pays rent to the Jackson County Sports Complex Authority. That means the Chiefs, owned by Lamar Hunt’s family, can’t compete with the Cowboys and The Los Angeles Rams did just that.
Best of all, Arrowhead Stadium is over 50 years old, so it’s not like las vegas raiders allegiant stadium and Los Angeles Rams Sophie Stadium Deals.
Chiefs ownership plans to renovate Arrowhead Stadium. But earlier this year, Jackson County voters rejected a proposed sales tax extension that would have funded the renovations.
Chiefs leaders have drawn up a deadline By the end of 2024, a decision will be made on what to do when the team’s lease agreement with the Jackson County Sports Complex Authority expires in 2031.
Even so, postseason appearances and success can still improve a team’s finances — just not necessarily in a specific postseason year.
There are many factors that drive ticket sales, but having a better record is one way to increase ticket prices. According to Statista, the Chiefs’ average ticket price per game for the 2023 season is $131.81, well above the league average of $120.94.
Perennial playoff teams are also more attractive to sponsors because they are virtually guaranteed to have thousands of people entering their stadiums each year.
The Chiefs played their first NFL game of the season on Thursday, defeating the Baltimore Ravens 27-20.
