How Much are the Kansas City Chiefs Worth?

Forbes released its annual NFL franchise valuations and the Kansas City Chiefs are now the fourth most valuable team in the league.

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Introduction

The Kansas City Chiefs are a professional American football team based in Kansas City, Missouri. The Chiefs compete in the National Football League (NFL) as a member club of the league’s American Football Conference (AFC) West division. The team was founded in 1960 as the Dallas Texans by businessman Lamar Hunt and was a charter member of the American Football League (AFL). In 1963, the team moved to Kansas City and assumed their current name. The Chiefs joined the NFL as a result of the merger in 1970. The team is valued at just over two billion dollars, making them the 27th most valuable sports franchise in the world and the 16th most valuable NFL franchise.

The Business of the Kansas City Chiefs

The Kansas City Chiefs are a professional American football team based in Kansas City, Missouri. The Chiefs compete in the National Football League (NFL) as a member club of the league’s American Football Conference (AFC) West division. The team was founded in 1960 as the Dallas Texans by businessman Lamar Hunt and was a charter member of the American Football League (AFL). In 1963, the team relocated to Kansas City, Missouri, and was renamed the Kansas City Chiefs. The Chiefs joined the NFL as a result of the AFL–NFL merger in 1970.

Revenue

In 2012, the Kansas City Chiefs had revenues of $231 million, ranking them 28th out of 32 teams in the National Football League (NFL). This was a decrease from the team’s revenues of $246 million in 2011, which had ranked them 26th in the NFL. The vast majority of the Chiefs’ revenue comes from three sources: television rights fees, stadium revenue, and merchandise sales.

The Chiefs generate $137 million annually from television rights fees, ranking them 20th in the NFL. The NFL’s television contracts are the most lucrative in all of sports, and are currently worth an average of $3.1 billion per year. Each team receives an equal share of this money, regardless of its performance on the field or its market size. In addition to the money that each team receives from the league’s television contracts, each team is also allowed to negotiate its own local television contract. The Chiefs currently have a local television contract with CBS affiliate KMBC that is worth an additional $20 million per year.

The Chiefs generate $95 million in revenue from Arrowhead Stadium, ranking them 8th in the NFL. Arrowhead Stadium is owned by Jackson County Sports Authority and lease to the Chiefs for a yearly fee. The current lease agreement runs through 2024 and calls for annual payments of $6 million through 2021, $7 million in 2022, and $8 million in 2023 and 2024. In addition to these lease payments, the Chiefs also keep all revenue from parking and concessions at Arrowhead Stadium.

Expenses

The Kansas City Chiefs are a professional American football team based in Kansas City, Missouri. The Chiefs compete in the National Football League (NFL) as a member club of the league’s American Football Conference (AFC) West division. The team was founded in 1960 as the Dallas Texans by businessman Lamar Hunt and was a charter member of the American Football League (AFL). In 1963, the team moved to Kansas City, Missouri, and was renamed the Kansas City Chiefs. The Chiefs joined the NFL as a result of the AFL–NFL merger in 1970. The team is valued at over $2 billion.

The team has had bad luck with injuries in recent years, which has led to increased expenses. In 2017, the Chiefs’ total expenses were $513 million, an increase of $32 million from 2016. This includes $332 million in player expenses, an increase of $28 million from 2016.

Net Income

The Kansas City Chiefs are a professional American football team based in Kansas City, Missouri. The Chiefs compete in the National Football League (NFL) as a member club of the league’s American Football Conference (AFC) West division. The team was founded in 1960 as the Dallas Texans by businessman Lamar Hunt and was a charter member of the American Football League (AFL). In 1963, the team relocated to Kansas City and assumed their current name. The Chiefs joined the NFL as a result of the AFL–NFL merger in 1970. The team is valued at just over $1 billion.

In 2018, the Kansas City Chiefs reported revenue of $486 million, an increase of 18% from 2017. Operating income was $145 million, an increase of 32% from 2017. Net income was $87 million, an increase of 47% from 2017.

The Worth of the Kansas City Chiefs

The Chiefs are an American football team based in Kansas City, Missouri. The Chiefs compete in the National Football League (NFL) as a member club of the league’s American Football Conference (AFC) West division. As of 2019, the Chiefs are worth an estimated $2.6 billion.

Enterprise Value

The Kansas City Chiefs are a professional American football team based in Kansas City, Missouri. The Chiefs compete in the National Football League (NFL) as a member club of the league’s American Football Conference (AFC) West division. The team was founded in 1960 as the Dallas Texans by businessmen Lamar Hunt and Harry Wismer, and became the Kansas City Chiefs after Hunt moved the franchise to Kansas City, Missouri, in 1963. The Chiefs joined the AFL in their inaugural season of 1960.
In 1963, the team announced plans to relocate to Kansas City; however concerns about a name change to Kansas City Royals (which would have shared a name with Major League Baseball’s then-Kansas City Athletics) prompted the team to announce that year that the move would not occur until 1964. In 1964 and 1965, led by head coach Hank Stram,the Texans/Chiefs won consecutive American Football League championships behind quarterback Len Dawson.
In 1966 Stram was hired as head coach of the NFL’s expansion Atlanta Falcons (now defunct), but he returned to lead the Chiefs to an appearance in Super Bowl I in 1967—the franchise’s first ever Super Bowl appearance—and a victory over the Green Bay Packers. The Chiefs thus became one of only two teams (along with Green Bay) representing old AFL cities that merged into the more senior NFL that won a Super Bowl during their first season after doing so (New England had done so earlier, but their AFL origins were later).
The team remains headquartered at Arrowhead Stadium in downtown Kansas City. The franchise owns Arrowhead Stadium and adjacent training facility on approximately eleven hectares (27 acres) of land leased from Jackson County.

Revenue Multiplier

The Kansas City Chiefs are a professional American football team based in Kansas City, Missouri. The Chiefs compete in the National Football League (NFL) as a member club of the league’s American Football Conference (AFC) West division. The team was founded in 1960 as the Dallas Texans by businessmen Lamar Hunt and Clint Murchison Jr., and became the Kansas City Chiefs after Hunt moved the franchise to Kansas City, Missouri, in 1963. The team is valued at just over $2 billion, which is a revenue multiplier of 2.6.

Comparable Teams

teams
In the NFL, the Cowboys are worth the most at $4.8 billion, followed by the Patriots ($3.7 billion), Redskins ($3.1 billion), Giants ($3.1 billion) and 49ers ($3.05 billion). The least valuable team is the Jaguars, worth $1.95 billion.

The Chiefs are now worth $2.60 billion, up 15% from last year. They are now the 15th most valuable NFL franchise, up from 20th last year.

Conclusion

As of 2019, the Kansas City Chiefs are valued at $2.1 billion. This makes them the 28th most valuable NFL team.

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