Patrick Mahomes and Travis Kelce of the Kansas City Chiefs celebrate a victory in 2022.
David Eulitt | Getty
The NFL team that has won three of the last five Super Bowls is worth less than the organizations with the two longest playoff droughts in the league.
The Kansas City Chiefs, the NFL’s current dynasty, are only the 18th most valuable team in the league at $6.07 billion, according to CNBC’s Official 2024 NFL Team Valuations.
That puts the franchise well below the $7.35 billion New York Jets, who have not made the playoffs since the 2010 season, and a few slots behind the $6.2 billion Denver Broncos, who have not played in the postseason since the 2015 season and are 1-9 against the Chiefs since 2019.
But making the playoffs, and even dominating them, doesn’t generate as much value-driving revenue for a team as you might expect.
The bulk of a team’s revenue in a given season comes from the ballooning media rights fees that the NFL charges for its games. For the 2023 season, each team took in an average of more than $350 million from the league in media rights fees, well over half of annual revenue for the majority of NFL teams, according to CNBC’s reporting and data analysis. The Chiefs tallied $590 million in revenue last season.
Additionally, most of the revenue from postseason ticket sales goes to the league to cover expenses. The home team receives a stipend, but hosting playoff games, which the Chiefs have done 10 times in the last five years, does not do much for the ticket sales that a team actually pockets. Contrast that with leagues like the NBA and NHL, where clubs receive a much bigger cut of playoff ticket revenue.
Stadium ownership and operating rights are also a lucrative source of revenue for NFL teams. Dallas Cowboys owner Jerry Jones created the blueprint for reeling in huge sums not shared with the rest of the league, and a crucial part of that comes from sponsorship deals and nonfootball events at AT&T Stadium, which Jones has the operating rights to.
The Chiefs can’t follow that playbook, at least for now. The team is a tenant of Arrowhead Stadium and pays rent to the Jackson County Sports Complex Authority. That means the Lamar Hunt family-owned Chiefs can’t capitalize on nonfootball revenue like the Cowboys and the Los Angeles Rams do.
On top of that, Arrowhead Stadium is more than 50 years old, so it does not have the expansive sponsorship and advertising opportunities that newer venues like the Las Vegas Raiders’ Allegiant Stadium and Los Angeles Rams’ SoFi Stadium offer.
Chiefs ownership had planned to revamp Arrowhead Stadium. But earlier this year, Jackson County, Missouri, voters rejected the proposed sales tax extension that would have been used to finance the renovation.
Chiefs leaders have set a deadline for the end of 2024 to decide what to do when the team’s leasing agreement with the Jackson County Sports Complex Authority expires in 2031.
Even so, postseason appearances and success can still boost a team’s finances — just not necessarily in the year of a given playoff run.
A number of factors drive ticket sales, but having a better record is one way to boost prices. The Chiefs’ average ticket cost was $131.81 for a game in the 2023 season, well above the $120.94 league average, according to Statista.
Perennial playoff teams can also be more attractive to sponsors because they can almost guarantee that thousands of additional people will be in their stadiums every year.
The Chiefs played in the first NFL game of the season Thursday, defeating the Baltimore Ravens 27-20.
