The Kansas City Chiefs, winners of three of the last five Super Bowls, are surprisingly only the 18th most valuable NFL team, valued at $6.07 billion. This ranks them below teams like the New York Jets, valued at $7.35 billion, and the Denver Broncos at $6.2 billion, despite both franchises enduring long playoff droughts. The Jets haven’t made the playoffs since 2010, and the Broncos have missed the postseason since 2015.
Contrary to popular belief, playoff success doesn’t always equate to higher team valuations. Much of an NFL team’s revenue comes from media rights fees, which amounted to over $350 million per team for the 2023 season. This accounts for more than half of the annual revenue for most teams. The Chiefs, for example, earned $590 million last season.
Playoff ticket sales don’t significantly boost revenue either, as most of that money goes to the league. The home team only receives a small portion, making playoff hosting less financially impactful compared to other leagues like the NBA and NHL, where teams retain a larger share of postseason ticket sales.
Stadium ownership and operating rights play a crucial role in increasing a team’s revenue. For instance, Dallas Cowboys owner Jerry Jones generates substantial non-football revenue from sponsorships and events at AT&T Stadium, which he operates. However, the Chiefs are tenants at Arrowhead Stadium and pay rent to the Jackson County Sports Complex Authority. As a result, they cannot capitalize on non-football events like the Cowboys or the Los Angeles Rams, who own and operate SoFi Stadium.
Arrowhead Stadium, now over 50 years old, also lacks the modern sponsorship and advertising opportunities available at newer venues like Las Vegas’ Allegiant Stadium. The Chiefs had planned renovations for Arrowhead, but a proposed sales tax extension to finance the project was rejected earlier this year. Chiefs ownership has set a 2024 deadline to determine the future of the stadium as their lease expires in 2031.
Despite these limitations, the Chiefs still benefit financially from their success. Higher regular-season ticket prices, driven by their winning record, saw the average cost for a game in 2023 reach $131.81, well above the league average of $120.94. Additionally, consistent playoff appearances make the team more attractive to sponsors, ensuring a strong financial outlook in the long term.
READ MORE: