NASHVILLE, Tenn. — Royals owner David Glass created a stir recently in revealing $70 million to be the budgeted break-even point for the clubs 2013 payroll.
Royals
Royals payroll pinch is tighter than previously believed
December 6
By BOB DUTTON
The Kansas City Star
Well, the financial pinch is actually tighter than initially believed although not nearly as tight as club officials initially indicated.
Club officials said Thursday that the $70 million payroll figure encompasses the entire 40-man roster not merely the 25-man roster on Opening Day. The difference between the payrolls for the 25-man and 40-man rosters is roughly $3 million. So far, the Royals are projected to spend $68 million on their 40-man roster.
On Wednesday night, club officials said that the $70 million figure included not only the 40-man roster, but also signing-bonus limits for the draft and international spending. That made the situation look especially bleak: Spending on the draft and international signings is roughly budgeted at $10 million, which wouldve left the Royals $8 million in the red.
Club officials later corrected those figures, saying draft and international spending is not included in the payroll.
Using that figure, the Royals have about $2 million of available payroll next season to break even, according to the clubs financial projections.
Mr. Glass has been very clear all along, general manager Dayton Moore said, that he doesnt want to cut spending on the draft or in our international operations. But those expenditures do come into play when youre looking at (overall) profit and loss.
Glass expressed willingness to subsidize the payroll at a moderate level, which he said he has often done in the past. The Royals pursuit of a front-of-the-rotation starter suggests he is willing do so again in regard to the clubs stated break-even point.
Ive always been willing to spend whatever cash weve generated on payroll, Glass said, and Ive even been willing to subsidize it under conditions where we have an opportunity to be competitive in our division. Ive never changed from that.
While top club officials, present and past, affirm Glass contention that he doesnt pocket an operating profit, those assertions are a stark contrast to figures published by Forbes magazine, which contend Glass made about $100 million from 2000-11.
Major League Baseball has long contended the Forbes figures, which are calculated without access to club financial statements, are wildly inaccurate.
Mr. Glass has gone above and beyond, Moore said, in supporting our team in everything weve wanted to do internationally, through the draft and in building and improving our major-league payroll. Hes been extremely supportive.
Weve signed virtually every single player who weve identified as being worthy of a long-term contract. Does he ask tough questions? Yeah, but theres not anybody Ive ever met who is more passionate or a better historian of the game. He owns a major-league team for all of the right reasons.
To reach Bob Dutton, send email to bdutton@kcstar.com. Follow his updates at twitter.com/Royals_Report.




