Expect Kansas City Chiefs To Boost 2013 Revenues With Improved Pl

Expect Kansas City Chiefs To Boost 2013 Revenues With Improved Play

I’m sure Chiefs Hall of Fame ex-QB Len Dawson is beaming with pride these days.

Though the Kansas City Chiefs 3-0 start to the 2013 NFL season may not be the most impressive 3-0 in NFL history, it’s certainly a welcomed start to a season which, if sustained, could be financially transforming. http://b-i.forbesimg.com/prishe/file...9/300x2191.jpg

In 2012, the Chiefs finished 2-14 and dealt with the tragic suicide of Jovan Belcher. They ranked 25th out of 32 NFL teams in attendance as a percentage of capacity (89.3%), and using their average 2012 ticket price ($64.52) along with their average 2012 attendance (68,508), this yields an estimated 2012 ticket revenue of $35.2 million. After factoring in the NFL’s 60-40 gate split, the Chiefs kept approximately $21.1 million in ticket revenue for 2012.

89.3% of capacity doesn’t seem horrendous, but when compared to the Chiefs history it really is a significant drop off. Between 1993 and 2008, the Chiefs sold at least 95% of their ticket inventory.

Unfortunately, it’s been below 90% of capacity in 6 of the last 7 years. With only 3 playoff appearances in the last 15 years, with 20 years gone by since winning a playoff game with a quarterback named Montana, and with 6 losing seasons out of the last 7 (4 of which resulting in 4 or fewer wins), it’s hard to find fault with even the most ardent Chiefs supporter who may have lost faith in the organization.

But with the acquisition of a respected coach in Andy Reid and a solid quarterback in Alex Smith who showed massive improvement under his former coach Jim Harbaugh in San Francisco, all of a sudden the Chiefs are 3-0 and looking good doing it. They are second in the league in points allowed per game at 11.3 True, their first win was against the offensively abysmal Jaguars, but their other wins (Dallas, Philly) were against teams that have shown some offensive punch early in the 2013 campaign.

Selling out their home opener, a tight 17-16 victory over the Dallas Cowboys, was partly due to local fans wanting to see the new regime. It was also likely aided by the fact that numerous tickets were probably consumed by either local Cowboys fans or those that made the road trip from Texas. Similarly, with the New York Giants coming to town this coming Sunday coupled with the team’s Usain Bolt-like sprinter’s start out of the gates, it would be a major shock if they didn’t sell out this weekend as well.

Financially, if the Chiefs sustain a season-long sellout (76,952) at their 2013 average ticket prices (estimated by Team Marketing Report at $64.92), then ticket revenue would jump to roughly $40 million, of which they would keep $24 million…or a near $3 million boost from last year.

Additionally, one must factor in the complementary revenue associated with getting folks to show up in person for your games. In 2012 according to TMR’s Fan Cost Index, 2 beers, 4 soft drinks, 4 hot dogs, and parking for a party of 4 is another $81 in revenue. If the team can sustain sellouts throughout the season, they stand to generate an additional $1.4 million just in concessions and parking alone compared to 2012.

Though merchandise sales are shared league-wide, there would certainly be a bump in those figures as well if the improved play and renewed pride on display at Arrowhead sustains itself throughout the 2013 season.


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