CFO Intelligence Magazine – Fall 2021
Dan Crum
Kansas City Chiefs, EVP and CFO
When COVID-19 swept across the U.S., prompting a series of lockdowns and other restrictions, many businesses had to scramble to find a way to operate safely.
For Kansas City Chiefs CFO Dan Crumb, it was one more in a series of challenges for which there was no playbook. But instead of taking a Hail Mary pass, Crumb and his team took a huddle and strategized.
“In a normal year, our revenue stream is pretty constant,” he says. “But COVID forced NFL teams to reduce attendance — at our club to about 22% of capacity — for the entire season. We got through it with discipline and strategic planning.”
ALL-NIGHTERS
Some nights “we were on conference calls and Microsoft Teams videoconference calls till 1:00 in the morning running ‘what-if’ scenarios,” he recalls. The Chiefs also accelerated the timeline for some high-tech implementations “that we had previously been examining,” Crumb adds. “For example, we went to a cashless mode for in-stadium concession purchases, using touchless mobile pay so stadium-goers could order remotely with the Chiefs mobile app, and then pick up their items with minimum personal contact.”
By the time that the pandemic crashed the economy, the Chiefs were already knee-deep in digital initiatives. “The technology revolution has spurred us to find new ways to connect with fans,” Crumb explains. “So, some years ago, as we planned to connect with the next generation of fans, we knew that we’d have to develop more digital outreach and personalized content to meet fans’ needs.”
One example: “Watching a game on a mobile device is a lot different than watching it on a big-screen TV,” he says. “Even before the pandemic, we were allocating more resources to meet fans who are turning to channels like digital live streaming.”
It’s also reflected in the latest NFL TV contracts — 10-year network broadcast contracts, for example reflect live-stream components.
The changes are “all about connecting with fans, who increasingly want to use their mobile devices to watch games and to purchase merchandise,” adds Crumb. “At the same time, we’re making more connections with fans outside of the U.S., with game series in locations like London and Mexico.”
Of course, as the team engages in more international transactions, “that brings up issues like foreign currency translation and compliance with international accounting standards. It keeps us on our toes.”