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A recent Forbes article placed the value of the Kansas City Chiefs at $2.1 billion, making them the 27th most valuable sports franchise in the world.
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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 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 over $2 billion, making them the 28th most valuable sports franchise in the world.
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 moved to Kansas City, Missouri and was renamed the Kansas City Chiefs.
Revenue
In 2019, the Kansas City Chiefs generated $619 million in revenue. The team’s biggest source of revenue came from gate receipts, which totaled $186 million. The Chiefs also generated $188 million in national revenue, which comes from sources such as the NFL’s national television contracts, NFL licensing deals and other sources. The team’s local revenue, which comes from sources such as television contracts and stadium signage, totaled $245 million.
Operating Income
Income from continuing operations before income taxes was $295.1 million in 2018, a decrease of $102.6 million, or 26%, from $397.7 million in 2017. The decrease was due to lower player costs as a result of changes in the NFL Collective Bargaining Agreement (“CBA”) that shifted $31.2 million of signing bonus expense from 2018 to 2017, lower local revenue as a result of one fewer home game in 2018, and $13.0 million of additional investments in stadium improvements and game day experience initiatives. These decreases were offset by higher national revenue as a result of increases in television contracts and league-wide sponsorships and higher other income as a result of higher interest income on cash balances.
Player Expenses
Player expenses for the Kansas City Chiefs include salaries, bonuses, and other compensation for all the players on the team’s roster. The total salary cap for the 2019 season is $188.2 million. This number will increase to $190.1 million in 2020 and $196.8 million in 2021.
The Chiefs have one of the highest paid quarterbacks in the NFL with Alex Smith having a base salary of $17 million in 2019. There are 18 other players on the team that have a base salary of $1 million or more.
Stadium
Introduced in 1972, Arrowhead Stadium is the home of the Kansas City Chiefs. The stadium is located in Kansas City, Missouri, and has a seating capacity of over 76,000 people. Arrowhead Stadium is widely considered to be one of the best stadiums in the NFL and is known for its citing and atmosphere.
In 2010, Forbes valued the Chiefs at $1 billion, making them the 26th most valuable NFL franchise. However, due to the economic downturn, the team’s value declined to $875 million by 2016. In 2017, the Chiefs were valued at $950 million.
The Worth of the Kansas City Chiefs
The Kansas City Chiefs are worth $2.6 billion, making them the 29th most valuable sports franchise in the world. They are also the most valuable franchise in the NFL. The Chiefs were valued at $1.8 billion in 2019, but their value has increased by 44% in the past two years.
Enterprise Value
The Chiefs are currently valued at $2.6 billion, which is good for 22nd in the NFL. In 2019, Forbes had the Chiefs valued at $2.38 billion, which ranked them 26th in the NFL. The team has seen a slight uptick in value over the past year or so, but they are still near the bottom of the league in terms of worth.
Comparative Values
The Kansas City Chiefs are one of the most valuable sports franchises in the world. The team is worth an estimated $1.87 billion, according to Forbes magazine. That puts the Chiefs ahead of 29 other NFL teams and behind only the Dallas Cowboys, who are worth an estimated $5 billion.
In comparison, the average NFL team is worth $2.34 billion. The Chiefs are also ahead of all but four Major League Baseball teams, and they rank ahead of all but two NHL teams.
The Chiefs’ value has increased steadily over the years. In 2010, the team was valued at $990 million. In 2015, the team was valued at $1.48 billion. And in 2019, the team’s value rose to $1.87 billion.
The Chiefs have seen a significant increase in value due primarily to their on-field success in recent years. The team has made the playoffs six times in the last 10 years and won the Super Bowl in 2020.
Conclusion
In conclusion, the Kansas City Chiefs are worth a great deal of money. They are one of the most valuable sports franchises in the world and their value will only continue to rise in the years to come. If you are a fan of the Chiefs, then you can be proud to say that you support one of the most valuable teams in all of sports.
