The Chiefs’ franchise value reportedly has more than doubled over the past five years

4-5 minutes 8/31/2023 Kansas City Chiefs quarterback Patrick Mahomes (15) hoists the Lombardi Trophy after leading the Chiefs to a Super Bowl LVII victory, 38-35, over the Philadelphia Eagles on Sunday, Feb. 12, 2023, at State Farm Stadium in Glendale, Arizona. Chiefs Chairman & CEO Clark Hunt and Head Coach Andy Reid look on.

When Patrick Mahomes became the Chiefs’ starting quarterback in 2018, the team was valued at $2. 1 billion by Forbes. As the Chiefs prepare for the 2023 season as the defending Super Bowl champions, the team value is now $4.

3 billion, Forbes reported this week. That’s more than double the team’s worth five years ago. But this isn’t simply the Patrick Mahomes Effect, although the Chiefs did rake in $77 million in gate revenues in 2022, Forbes said.

However, the Chiefs’ value is below the NFL average of $5. 1 billion. That NFL average is 14% more than a year ago, Forbes’ Mike Ozanian and Justin Teitelbaum noted.

The authors say the increase in team values has been “powered by more television money and the $6. 05 billion sale of the Washington Commanders — at 11 times revenue — to a group led by billionaire Josh Harris in July. ” The average NFL team value is $5.

11 billion, which dwarfs the No. 2 league on the list, the NBA ($2. 86 billion) “The aggregate value of the entire league — $163 billion — is almost as much as the NBA and MLB combined,” Ozanian and Teitelbaum wrote.

The Cowboys are the richest team in the NFL with a value of $9 billion. The Patriots are second ($7 billion), followed by Rams ($6. 9 billion), Giants ($6.

8 billion) and Bears ($6. 3 billion). Las Vegas is the highest valued AFC West team ($6.

2 billion, sixth overall), followed by the Broncos ($5. 1 billion, 13th), Chiefs (23rd) and Chargers ($4. 15 billion, 25th).

You can see the full list here. Forbes noted the NFL’s television deals with Fox, ESPN/ABC, NBC, CBS, Amazon and YouTube will bring the league $125. 5 billion through 2033.

The Kansas City Business Journal reported that all NFL teams, including the Chiefs received $374. 4 million in television revenue in 2022. The league also will change its debt limit rules, Forbes said, which will help increase team values going forward.

“League rules currently stipulate that a general partner must own at least 30% of a team, much stricter than the NBA (15%), MLB (15%) and NHL (20%) rules,” Ozanian and Teitelbaum wrote. “The NFL is going to increase its debt limit over the next several months. Currently, teams can have $600 million of debt, and a prospective buyer is permitted to have up to $1.

1 billion of debt. Before the next team goes on the market, those figures are going to increase to $1 billion and $1. 5 billion, respectively, .

. . making it easier for a general partner to come up with that 30%.

” The Chiefs could move up on the list in the coming years as it solidifies its future stadium plans. Forbes said team values are “enterprise values (equity plus net debt) and include the economics (including non-NFL revenue that accrues to the team’s owner) of the team’s stadium but not the value of the stadium real estate itself. .

. . “Sources for NFL valuations include team executives, sports bankers and league consultants; public documents such as stadium lease agreements and credit rating reports; and broadcast industry executives.

” .