Kansas City Chiefs playoff Super Bowl valuation | Wilnesh News

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.

According to CNBC’s official 2024 NFL team valuation, the market value of the Kansas City Chiefs (NFL dynasty) is only $6.07 billion, ranking 18th in the league.

That puts the team well below the $7.35 billion New York Jets, who haven’t made the playoffs since the 2010 season, and behind the $6.2 billion Denver Broncos, who haven’t been since the 2015 season. Played in the playoffs and went 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 CNBC reports and data analysis, 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. 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 costs. 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, where Jones owns operating rights.

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 tap into non-football revenue like the Cowboys and Los Angeles Rams.

On top of that, Arrowhead Stadium is more than 50 years old, so it doesn’t have the extensive sponsorship and advertising opportunities offered by newer venues like the Las Vegas Raiders’ Allegiant Stadium and the Los Angeles Rams’ SoFi Stadium.

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 Center 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.