Patrick Mahomes and Travis Kelce of the Kansas Metropolis Chiefs rejoice a victory in 2022.
David Eulitt | Getty
The NFL crew that has received three of the final 5 Tremendous Bowls is value lower than the organizations with the 2 longest playoff droughts within the league.
The Kansas Metropolis Chiefs, the NFL’s present dynasty, are solely the 18th most beneficial crew within the league at $6.07 billion, in keeping with CNBC’s Official 2024 NFL Group Valuations.
That places the franchise nicely under the $7.35 billion New York Jets, who haven’t made the playoffs for the reason that 2010 season, and some slots behind the $6.2 billion Denver Broncos, who haven’t performed within the postseason for the reason that 2015 season and are 1-9 in opposition to the Chiefs since 2019.
However making the playoffs, and even dominating them, does not generate as a lot value-driving income for a crew as you would possibly anticipate.
The majority of a crew’s income in a given season comes from the ballooning media rights charges that the NFL expenses for its video games. For the 2023 season, every crew took in a mean of greater than $350 million from the league in media rights charges, nicely over half of annual income for almost all of NFL groups, in keeping with CNBC’s reporting and information evaluation. The Chiefs tallied $590 million in income final season.
Moreover, a lot of the income from postseason ticket gross sales goes to the league to cowl bills. The house crew receives a stipend, however internet hosting playoff video games, which the Chiefs have completed 10 occasions within the final 5 years, doesn’t do a lot for the ticket gross sales {that a} crew truly pockets. Distinction that with leagues just like the NBA and NHL, the place golf equipment obtain a a lot larger reduce of playoff ticket income.
Stadium possession and working rights are additionally a profitable income for NFL groups. Dallas Cowboys proprietor Jerry Jones created the blueprint for reeling in big sums not shared with the remainder of the league, and a vital a part of that comes from sponsorship offers and non-football occasions at AT&T Stadium, which Jones has the working rights to.
The Chiefs cannot observe that playbook, no less than for now. The crew is a tenant of Arrowhead Stadium and pays hire to the Jackson County Sports activities Advanced Authority. Meaning the Lamar Hunt family-owned Chiefs cannot capitalize on non-football income just like the Cowboys and the Los Angeles Rams do.
On high of that, Arrowhead Stadium is greater than 50 years outdated, so it doesn’t have the expansive sponsorship and promoting alternatives that newer venues just like the Las Vegas Raiders’ Allegiant Stadium and Los Angeles Rams’ SoFi Stadium provide.
Chiefs possession had deliberate to revamp Arrowhead Stadium. However earlier this 12 months, Jackson County voters rejected the proposed gross sales tax extension that will have been used to finance the renovation.
Chiefs leaders have set a deadline for the tip of 2024 to resolve what to do when the crew’s leasing settlement with the Jackson County Sports activities Advanced Authority expires in 2031.
Even so, postseason appearances and success can nonetheless increase a crew’s funds — simply not essentially within the 12 months of a given playoff run.
Plenty of components drive ticket gross sales, however having a greater report is one technique to increase costs. The Chiefs’ common ticket value was $131.81 for a recreation within the 2023 season, nicely above the $120.94 league common, in keeping with Statista.
Perennial playoff groups will also be extra enticing to sponsors as a result of they’ll virtually assure that hundreds of extra individuals might be of their stadiums yearly.
The Chiefs performed within the first NFL recreation of the season Thursday, defeating the Baltimore Ravens 27-20.