The emerging consensus within baseball is that the new labor agreement, by instituting limits on spending for the draft and international acquisitions, makes it far harder for the Royals and other small-revenue clubs to build and maintain competitive operations.General manager Dayton Moore isn’t so sure.“We really believe that whatever the rules are, we have to adapt to them and be successful within the confines of the structure,” Moore said. “That’s our mind-set. I think there is still a lot of flexibility in this new agreement for you to be creative.”So no excuses.“It always comes down to the same thing,” Moore said. “It comes down to scouting judgment and your ability to create an environment that develops players and allows them to reach their ceiling.”Even so, the Royals overhauled their farm system in recent years by making major expenditures in the draft and through their international operations. Those efforts now appear ready to bear fruit as prized prospects dot the big-league roster.The Royals pushed this approach to the extreme earlier this year, in anticipation of the new labor rules, by spending a club-record $14.1 million in the draft, including $11.4 million through the first 10 rounds.Much of that went to multi-sport standout Bubba Starling, who got $7.5 million as the fifth overall pick, but the club also spent well beyond slot recommendations to lure other promising high school players away from college scholarships.Similarly, the Royals escalated their international efforts by shelling out $3.05 for Dominican outfielder Elier Hernandez, $2 million for Dominican shortstop Adalberto Mondesi, along with other signings.The new rules virtually prohibit such an approach in the future. All teams will be limited to a signing-bonus pool for the first 10 rounds ranging next year from $11.5 million for Houston to $4.5 million for the New York Yankees.The pool for each team is determined, primarily, by their on-field success in the previous year. The Royals should be in the $9-10 million range for the 2012 draft.Penalties for overspending are severe — starting at 75 percent for overspending by just 5 percent or less. Go 10 percent over budget and the penalty climbs to 100 percent and the loss of first- and second-round picks in the year’s draft.Example: If a club with a $10 million limit spends $11 million, it pays a $1 million penalty tax and loses its top two picks in the next year’s draft. If it spends $11.5 million (15 percent over its limit), it pays a 100 percent tax and loses its first two picks for the next two years.Overages figure to be rare.Baseball instituted similar curbs on international spending. Next year, all teams will have $2.9 million to spend on all international signings, which will now include Cuban defectors.Thereafter, the pool for each team will be a sliding scale, based on a club’s on-field success the previous season, and likely to range from $2 million to $5 million. Penalties for overspending are similar to those for the draft.“This year was the most we ever spent in international signings,” Moore countered. “Before, we always spent somewhere in that $2-3 million range. So I think it gives us enough money.“Again, it comes down to scouting and player development. You’ve still got to pick the right guys, and you still have to develop them.”Similarly, Moore shrugs off concerns regarding the draft spending limits.“It’s actually better than the (recommendations put out by the commissioner’s office in the previous) slotting system,” he said, “where the commissioner would put pressure on owners, and owners would put pressure on general managers.“We always had a budget. Now, our budget is going to be mandated by the CBA (collective-bargaining agreement). You have to work within the budget, and that’s what we’ll be prepared to do.”The Royals appear, initially, well positioned to absorb the changes. The prospects acquired earlier this year through the draft and international signings could, if scouting evaluations are correct, keep the club competitive for seven to 10 years.The crunch will occur once the Royals become competitive, slide down in the draft and receive a smaller bonus pool. That will limit their ability to replace talent and make it harder to maintain success.Even so, Moore isn’t alone in minimizing fears that the agreement will hurt small-revenue franchises.“I think it will do the exact opposite,” Pirates president Frank Coonelly told The Associated Press. “Teams finishing with the poorest records should have access to the very best talent coming into the game, and the decisions will be made on talent as opposed to signability.” Those poorer-performing teams should also have greater flexibility in distributing their bonus pool. In other words, it will be easier for them to carve out, say, $500,000 to sway a fifth-round pick from attending college than for a club with a more-limited bonus pool.Teams in small markets and with low revenues are also eligible for the new competitive-balance lottery, which consists of six picks after the first round and six more after the second round.Selections will be determined through a weighted lottery, which means the Royals, who qualify high on both counts, are likely to get one of the early picks. In short, they should regularly get two of the first 36 selections.“I’m not too worked up about the changes in the system that might affect us in a negative way,” Moore said. “I’m just not. You work within that system. I feel confident in the ability of our people to adjust and be successful.”

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Moore doesn’t believe new labor agreement will hurt Royals

By BOB DUTTON

The Kansas City Star

More News

General manager Dayton Moore isn’t so sure.

“We really believe that whatever the rules are, we have to adapt to them and be successful within the confines of the structure,” Moore said. “That’s our mind-set. I think there is still a lot of flexibility in this new agreement for you to be creative.”

So no excuses.

“It always comes down to the same thing,” Moore said. “It comes down to scouting judgment and your ability to create an environment that develops players and allows them to reach their ceiling.”

Even so, the Royals overhauled their farm system in recent years by making major expenditures in the draft and through their international operations. Those efforts now appear ready to bear fruit as prized prospects dot the big-league roster.

The Royals pushed this approach to the extreme earlier this year, in anticipation of the new labor rules, by spending a club-record $14.1 million in the draft, including $11.4 million through the first 10 rounds.

Much of that went to multi-sport standout Bubba Starling, who got $7.5 million as the fifth overall pick, but the club also spent well beyond slot recommendations to lure other promising high school players away from college scholarships.

Similarly, the Royals escalated their international efforts by shelling out $3.05 for Dominican outfielder Elier Hernandez, $2 million for Dominican shortstop Adalberto Mondesi, along with other signings.

The new rules virtually prohibit such an approach in the future. All teams will be limited to a signing-bonus pool for the first 10 rounds ranging next year from $11.5 million for Houston to $4.5 million for the New York Yankees.

The pool for each team is determined, primarily, by their on-field success in the previous year. The Royals should be in the $9-10 million range for the 2012 draft.

Penalties for overspending are severe — starting at 75 percent for overspending by just 5 percent or less. Go 10 percent over budget and the penalty climbs to 100 percent and the loss of first- and second-round picks in the year’s draft.

Example: If a club with a $10 million limit spends $11 million, it pays a $1 million penalty tax and loses its top two picks in the next year’s draft. If it spends $11.5 million (15 percent over its limit), it pays a 100 percent tax and loses its first two picks for the next two years.

Overages figure to be rare.

Baseball instituted similar curbs on international spending. Next year, all teams will have $2.9 million to spend on all international signings, which will now include Cuban defectors.

Thereafter, the pool for each team will be a sliding scale, based on a club’s on-field success the previous season, and likely to range from $2 million to $5 million. Penalties for overspending are similar to those for the draft.

“This year was the most we ever spent in international signings,” Moore countered. “Before, we always spent somewhere in that $2-3 million range. So I think it gives us enough money.

“Again, it comes down to scouting and player development. You’ve still got to pick the right guys, and you still have to develop them.”

Similarly, Moore shrugs off concerns regarding the draft spending limits.

“It’s actually better than the (recommendations put out by the commissioner’s office in the previous) slotting system,” he said, “where the commissioner would put pressure on owners, and owners would put pressure on general managers.

“We always had a budget. Now, our budget is going to be mandated by the CBA (collective-bargaining agreement). You have to work within the budget, and that’s what we’ll be prepared to do.”

The Royals appear, initially, well positioned to absorb the changes. The prospects acquired earlier this year through the draft and international signings could, if scouting evaluations are correct, keep the club competitive for seven to 10 years.

The crunch will occur once the Royals become competitive, slide down in the draft and receive a smaller bonus pool. That will limit their ability to replace talent and make it harder to maintain success.

Even so, Moore isn’t alone in minimizing fears that the agreement will hurt small-revenue franchises.

“I think it will do the exact opposite,” Pirates president Frank Coonelly told The Associated Press. “Teams finishing with the poorest records should have access to the very best talent coming into the game, and the decisions will be made on talent as opposed to signability.”

Those poorer-performing teams should also have greater flexibility in distributing their bonus pool. In other words, it will be easier for them to carve out, say, $500,000 to sway a fifth-round pick from attending college than for a club with a more-limited bonus pool.

Teams in small markets and with low revenues are also eligible for the new competitive-balance lottery, which consists of six picks after the first round and six more after the second round.

Selections will be determined through a weighted lottery, which means the Royals, who qualify high on both counts, are likely to get one of the early picks. In short, they should regularly get two of the first 36 selections.

“I’m not too worked up about the changes in the system that might affect us in a negative way,” Moore said. “I’m just not. You work within that system. I feel confident in the ability of our people to adjust and be successful.”