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Royals Expect To Deal With Payroll Constraints In 2017

By Jeff Todd | October 4, 2016 at 11:07am CDT

The Royals’ payroll will “regress” in 2017, according to GM Dayton Moore, as Rustin Dodd of the Kansas City Star reports. While Kansas City still intends to push to put a winner on the field after a disappointing, .500 campaign, it will face significant monetary restraints in finding ways to improve.

Dodd provides an extensive breakdown of the organization’s financial situation. The club carried approximately $135MM on its payroll on Opening Day of 2016, and is currently lined up to land near that team-record number as things stand (with arbitration raises factored in).

That kind of outlay, Moore suggested, is not likely. “This [2016] payroll was put together with going deep in the postseason [in mind],” said Moore. “That didn’t happen. Again, I’m accountable for that. It’s not going to look very good on the spreadsheet when the bill comes due.”

Looking ahead, it seems, there’s little chance that Kansas City will further bump that spending. If anything, it seems, the inclination may be to find ways to save. “[W]e’ll have to re-evaluate that, probably reorganize, take some steps back,” Moore explained. “We’re going to have to look internally and [in] trades,” he went on to add. “We won’t be adding money. That’s for darn sure.”

That will make for a challenge as K.C. seeks to return to contention. Certainly, better health and better play from key veterans could make a significant difference. But Moore cited an interest in bolstering the back of the pen and boosting the offense, which could require identifying the right internal talent and pursuing what Moore referred to as “creative” trade scenarios. He largely rejected the idea of adding salary in free agency after making some rather substantial outlays last winter.

Certainly, the totality of the comments seem to suggest that some change could be afoot. Key players such as Lorenzo Cain, Eric Hosmer, Mike Moustakas, Danny Duffy, Wade Davis, and Alcides Escobar are entering their final seasons of team control. While praising the organizational core, Moore said that the front office “also recognize[s] the need to maybe mix it up a little bit.”

Improving on offense will be a particular challenge given that the Royals may soon bid adieu to Kendrys Morales, their most productive hitter in 2016. He’s unlikely to pick up his side of a $10MM mutual option, and while the club could theoretically slap a qualifying offer on him, that would represent a big risk given the aforementioned financial constraints.

Moore suggested that it’s still an open question how things will play out with Morales, but it seems difficult to imagine a way to accommodate his return. “We’ll just keep all of our options open,” Moore said. “But he’s a player that we’re very proud of. He’s a big part of our success. We would love to have him back. I just don’t know if it will work at this point in time.”

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40 Comments

  1. notagain27

    9 years ago

    No way they extend a qualifying offer to Morales. Moore spent money from the spoils of World Series runs. Scaling back in payroll would seem logical.

    Reply
  2. AndThisGameBelongsToMySanDiegoPadres

    9 years ago

    One year from now the Royals will pull off the biggest fire sale since the ’97 Marlins.

    Reply
    • bfletchall9

      9 years ago

      we need to sell davis or hosmer or extend hosmer, we could get a pretty hefty reward, trade davis and hosmer to the nationals we will get Trea Turner (hit .350, 13 homers-40 Rbi and 33 stolen bases (48 games)

      Reply
      • The Oregonian

        9 years ago

        You seem pretty sure about that. Why would two guys with only one year of control left get you Turner?

        Reply
      • Travis’ Wood

        9 years ago

        Lol! Those guys don’t come anywhere near Turner. Hosmer had a negative fWAR this year… He’s essentially a replacement level first baseman on a one year deal. He has zero value

        Reply
      • monroe_says

        9 years ago

        ^ the “bargaining” phase of dealing with death.

        Reply
      • Jizz Chasholm

        9 years ago

        Hosmer might be the most overrated player in the league! He had a 101 ops plus last year. Even adding Davis to him wouldn’t get turner

        Reply
        • brettd25

          9 years ago

          Yea, he’s overrated…
          Three-time Gold Glover, hit one-out triple and scored tying run in 12th inning of 2014 Wild Card game and hit GW homer in extras of Game 2 of ALDS in 2014, Hit another homer in clincher of the same series. Batted .400 in ALCS in 2014. Had huge hit in big comeback in game four of the 2015 ALDS and then put it away with a homer in the 9th. Drove in the winning run in the clinching Game 6 of the ALCS and then drove in the game winner in Game 1 of the 2015 World Series. You may remember how he doubled off of Matt Harvey in the 9th inning of Game 5 of the same series and scored the tying run as the Royals won the World Series. He’s a tremendous leader, he just set career highs in homers and RBI’s, he’s only going to be 27 on Opening Day in 2017 and he has 29 RBI’s and 18 runs scored in 31 post-season games.
          But yea, he might be the most overrated player in the league…

          Reply
        • theo2016

          9 years ago

          Hosmer actually grades as a below average defensive first baseman. His career postseason ops is actually only .732 despite your claims of postseason accolades. Career highs in homers and rbis and yet his ops was below his career average. This is similar to a lot of cubs fans and their opinions of starlin castro, they would always mention his all star games and hit totals as proof of his excellence and ignore literally everything else.

          Reply
  3. schellis 2

    9 years ago

    Baseball really needs to find a way to fix this crap. the game was its greatest during the period after the draft was started and before free agency. When the teams that won were the best ran. While having deep pockets don’t equal championships it certainly helps keep competitive teams on the field and overcome contract mistakes.

    Baseball needs to go to complete revenue sharing including tv/radio contracts. No team should have even a cent of monetary advantage over any other.

    Just tired of seeing teams get there and have just a one or two year window to make it happen while a team like the Dodgers or Yankees can blow money miss and just throw even more money.

    I’m just glad that the Royals got a championship out of this because they likely are going to have a difficult time getting back to the playoffs for the next decade, because they aren’t going to be able to bring in impact talent because they can’t spend money, but will also likely be just good enough to land in the middle of the draft while still missing the playoffs for years.

    Reply
    • ZCosenza

      9 years ago

      I wrote my senior thesis on the idea of a salary cap in baseball. Glad others are realizing the problem

      Reply
      • jd396

        9 years ago

        Cap and floor system with meaningful revenue sharing and a minor retooling of service time and FA, would work wonders for fair competition IMO.

        Reply
        • southi

          9 years ago

          I’m not convinced that the powers to be in MLB care anything about fair competition. I think it will stay status quo for quite awhile. Some markets will just have to catch lightning in a bottle if they want to compete while other markets will be able to retool virtually ever season (even though that doesn’t mean they will hit the playoffs year in and year out, because injuries and freak stuff always happens in baseball).

          Reply
        • jd396

          9 years ago

          I don’t expect much to happen as the MLBPA and owners would both have to put quality of the game over their own interests. Maybe when we start a league from scratch on Mars and owners are franchisees of the league and not separate business entities so there’s more central control of the money aspect…

          Reply
    • MB923

      9 years ago

      A cap is never going to happen. Give it up. In recent years, there have been Many small market teams that have been more successful than many big market teams.

      You just named 2 good examples of teams who haven’t had a whole lot of success. The Yankees have not won a playoff game in 4 years. The Dodgers have not won a playoff series in 3 years.

      Team payrolls for nearly all teams, big and small market, are going up and up and up. Just 5 years ago, half the teams (15) in the league had $100 million payroll. In 2016, 26 teams (close to 27) had $100 million payroll

      By the way, I would not object to a salary cap. But I know who would, the MLBPA. That’s why, there is never ever going to be one.

      You only named 1 team, the Royals, and I’m sure you can name more, but every 1 small market team you can name that will be average or worse for awhile, I can probably name a big market team that it will happen to as well.

      Question for you (or any of you) that want a salary cap, don’t you think there should be a salary floor as well?

      Reply
      • skip 2

        9 years ago

        MB923 you nailed it there needs to be salary floor I’d say more than a salary cap!

        Reply
      • krillin

        9 years ago

        How would you propose a salary floor working? I mean that as a real question. not sarcasm. Because at the end of the day, baseball is a business. You can’t force a business to spend money if you ever want it to be successful. Seriously though, a floor is an interesting idea and am curious how you could make it work. In my eyes, you can’t just fine a team for not having a high enough salary. That just seems morally wrong. Especially since players that would be taking the highest toll on the pocket book are not forced to play there.

        Reply
        • Dookie Howser, MD

          9 years ago

          The NFL has a salary floor, cap, and lots of the revenue sharing. Briefly explained here:

          bucsnation.com/2015/3/13/8208069/nfl-salary-cap-fl…

          Reply
        • krillin

          9 years ago

          thanks!

          Reply
        • skip 2

          9 years ago

          Krillion your right at the end of the day it is a business and its sad to a point because it’s more of a business than a love of the game! So if a team doesn’t make the playoffs for 10 or more years would you call that a good business? And we are talking about playoffs not championships I’m saying. So if you ask me in today’s game if you don’t make the playoffs that’s is in 10 years well the owner has to sell because theres plenty of people with serious money that could run that business better!

          Reply
        • jtmorgan

          9 years ago

          In the NBA the team is forced to split the difference between their payroll and the floor between all the players. I could see a system like that working in the MLB, but I can’t imagine the owners would agree to it without a cap.

          There would have to be more revenue sharing in order to make it work as the revenue discrepancies are almost entirely based upon their local TV contract.

          Reply
        • southi

          9 years ago

          No offense, but where does it say that to be a ‘good’ business you need to be at the top of your category at least once every 10 years? I’d think that most business managers would say it was more about maximizing profits on your return on investment. Just because a team hasn’t won a world championship doesn’t mean they aren’t a good ‘business’ (in other words making a good profit for the money expended).

          Reply
        • skip 2

          9 years ago

          southi we are looking at it as to different things! I just used 10 years as a example. You are looking at this as solely as a pocket stand point. I’m looking at this as winning not winning championships like I said cause we both know that’s very hard but getting into the post season! So let’s just go back to 10 year example if I’m a fan and my team hasn’t made the “PLAYOFFS” in ten years I surely won’t go to a game there’s something wrong because theses days as in baseball business that’s a failing business!

          Reply
        • ecat72

          9 years ago

          You can’t use the NFL as an example. No NFL team signs their own individual TV contract. It’s a league wide deal and the money is split evenly among the owners. Revenue sharing like that in MLB is not possible. The cap only works so well BECAUSE of revenue sharing.

          Reply
      • jd396

        9 years ago

        Yes

        Reply
      • jd396

        9 years ago

        A cap would require a floor to get by the MLBPA. And adjustments to FA. I’d imagine some kind of restricted FA prior to full FA, say at year 4 if the team doesn’t offer them a certain amount. Something that enables players to find their way around the league.

        Cap keeps teams from stockpiling and floor ensures teams are filling their rosters out even in rebuild years.

        Do it right and the players probably benefit more than teams overall. More guys get more opportunities.

        Reply
    • AcaciaStrain

      9 years ago

      You know that this is a business, right?

      Reply
    • dejota

      9 years ago

      I’m going to call BS. Bad teams can rebuild much quicker in the modern era because those super teams are broken up. If you lag in mediocrity in the MLB its because you cant draft, develop talent or, more commonly, a combination of both.

      MLB off seasons are, in my opinion, the most compelling entity in sports short of championships. Any tweaks that make players changing uniforms would take away from this.

      Lastly, look no further than the NFL for how toI much parity ruins a league. It might be compelling at first but over time it becomes a joke. Maybe I’m the only one who has this opinion but knowing that 75% of your season amounts to a coin toss if you’re good (and 33% if you’re bad an hoping for decent draft picks) is enfuriating and the temporary high of every play mastering is quickly replaced by the hangover of having (another) disappointing season.

      So while I lament the fact that the Royals window had closed more quickly than seems just, the alternative isn’t the utopia people who hate the current model would have us believe.

      Very interested to hear from the guy who wrote his thesis on this. My opinions are solely based on my own relationship with sports fwiw.

      Reply
      • theo2016

        9 years ago

        Pretty much this, championing parity while not realizing that putting so much emphasis on the draft is ludicrous. The average time a player spends in the minors after the draft is incredibly high in baseball. It would be the same teams year after year as opposed to the current system that while small markets have a smaller window they can still have that window.

        Reply
    • bigkempin

      9 years ago

      Teams do give money into revenue sharing from TV deals….the Dodgers are giving over $100M every year into revenue sharing just from their TV deal.

      Reply
  4. jd396

    9 years ago

    They’ll have to retool for a couple years I think. Moore wisely put money into a somewhat small window of contention and it resulted in a WS ring and darn close to two.

    Reply
  5. darenh

    9 years ago

    The Even Smaller market Brewers dismantled their team, turned over 21 of their 40 roster spots, cut payroll to some ridiculous level like $65 million and….

    proceeded to win 5 more games than the year prior.

    It is indeed much, much harder to build a winner in a small market but finding and developing talent is an art form, not a science.

    Reply
  6. chitownsox11

    9 years ago

    I think there does need to be some type of salary cap and floor in the MLB. The NBA, NHL, and NFL all have some form of a salary cap. It makes it really hard for small market teams to have any chance of sustained success. I would say the Royals did about the best you can do in a small market over the last three or four years, but that is going to come to an end really quick with many key players reaching free agency after this year.

    The Yankees have had a winning season for 23 straight seasons. I wonder why that is? It is not like the Yankees have some far superior scouting, drafting, and player development. Spending money doesn’t necessarily mean world series wins, but it does usually mean playoff appearances. And you obviously need to be in the playoffs to win the World Series.

    Some people say rebuild like the Cubs, and you will be able to have sustained success. Really? The Cubs have a payroll of $170. What small market team has a $170 million pay role?

    The cards are really stacked against small market teams. Small and mid market teams best chance is to try and catch lighting in a bottle for a couple years, which can become pretty disheartening as a small/mid market fan.

    I would argue that small/mid market teams, even if they play everything perfect, usually only have a two or three year window to have a legitimate chance at winning a world series. That is not the case for the larger market teams.

    Reply
    • southi

      9 years ago

      I definitely won’t disagree that imho the odds are stacked against small market teams. How can you compete in the same manner as they big market teams do? The answer is you can’t in the exact same manner.

      Just a few rough numbers from a google search:
      NYC metro population 2015 estimated census: 20.2 million people
      Tampa/St. Pete metro population 2012 estimated census 4,310,524

      so with 2 teams in the NYC area hypothetically split evenly that gives you in excess of 10 million potential fans per team…well more than 2x as many for Tampa to pull from. Of course the big market teams will have more money.

      Maybe the next time MLB wants to expand it looks to add another team in places like NY, Boston, Chicago and LA…that would do a lot towards helping towards parity (and no I don’t expect that will happen soon, nor do I think the powers that be in major league baseball truly desire any sort of parity.

      Reply
      • chitownsox11

        9 years ago

        You are missing the point. There needs to be a salary cap, even though the players will never want to agree to it.

        Reply
    • theo2016

      9 years ago

      You point out the cubs payroll of 170, they didn’t need to bump that payroll… They are still a playoff team without signing Hayward and zobrist which puts them directly in line with the royals payroll… P.s. that payroll includes them still paying Edwin Jackson.

      Reply
  7. BravesNomad

    9 years ago

    Back to the actual topic here, which is the Royals and their issues. Most people in baseball knew they had a small window to succeed based on their core and the cost associated. They had a bunch of young, cost controlled players and a 3-4 yr window before players got expensive. Now they are there, and need to re-stock or reload some.

    The Royals and Braves match up as usual, with several trade possibilities. With the Braves rebuilt farm system and the amount of cash they have to play with they could easily line up to take on higher salary/limited control guys and then refill KC with a number of players.

    Maybe something for Duffy, or Kennedy or Soria for some of our younger arms. Blair, Jenkins, Gant, Ellis or Whalen could be put in some sort of package maybe with Markakis.

    Reply
    • theo2016

      9 years ago

      Stop trying to trade markakis. No one wants him. He holds no value.

      Reply
    • Dookie Howser, MD

      9 years ago

      I’m not 100% on the Markakis has no value bandwagon – I think he is fine for what he is, if a bit over priced – but this doesn’t make sense for either team.

      The Royals don’t want to be adding additional payroll (Markakis) and the Braves are just on the brink of coming out of their own rebuild. Why tear it down now for one year contracts? I guess they could make the trade with an eye to re-sign, but they could just as easily get them as a FA at the point if they were willing to spend the cash. The Braves are not going to contend in 2017 (sorry, Coppy), so why break the bank for a splurge on players with expiring control?

      Reply
  8. erikt

    9 years ago

    How about trading Gordon and Davis and all their remaining money to Toronto for Dalton Pompey and a lower level pitcher.

    Reply

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