Monday, September 26, 2005

Royals' Financial Picture


The Royals are in good financial shape for next year. The only guaranteed contracts for next year are Sweeney's and Berroa's, totaling $13 million. Affeldt, Hernandez, and Brown will be eligible for arbitration.

Other players making league-minimum or so: Mike MacDougal (375), Zack Greinke (350), David DeJesus (350), Chip Ambres (325), Mike Wood (325), John Buck (325), Denny Bautista (325), Mark Teahan (325), Ruben Gotay (325), Andrew Sisco (325), JP Howell (325), Ambiorix Burgos (325), Leo Nunez (325), Kyle Snyder (325), DJ Carrasco (350), Justin Huber (325)

Without the 3 players eligible for arbitration, the payroll would be around $20 million. With the 3 arbitration-eligible players, the payroll will be closer to $25 million. With Glass supposedly committing $50+ million to next year's payroll, the Royals could have as much as an additional $25 million to spend this offseason. However, whether or not the Royals can use that full $25 million depends on the Royals' financial picture beyond 2006, unless they plan on giving out $25 million in one-year contracts. Whether the money is spent or not also depends on Glass's willingness to give 3 or 4-year contracts to above-average players.


Financial Commitments: Mike Sweeney ($11 million), Angel Berroa ($3.25 million)

Arbitration eligible:
Third-year: Jeremy Affeldt
Second-year: Emil Brown, Runelvys Hernandez
First-year: Mike MacDougal, Jimmy Gobble, Kyle Snyder, DJ Carrasco
Super Twos? Zack Greinke (2 yrs, 135 days), David DeJesus (2 yrs, 146 days)

The new arbitration-eligible players and arbitration increases could add $10 million or so in new payroll. Brown, Snyder, Gobble, and Carrasco may not be on the major league roster after 2006, so that could help. DeJesus is pretty much a lock to be a Super Two and Greinke has probably a 50% chance of being a Super Two (being arbitration-eligible a year early). The Royals' base payroll looks like it would be in the neighborhood of $30-35 million.

FAs after 2007: Mike Sweeney, Jeremy Affeldt


Major Financial Commitments: Angel Berroa ($4.75)

2007-2008 offseason Arbitration eligible:
First-Year: Zack Greinke, David DeJesus, Mike Wood, John Buck, Mark Teahan, Denny Bautista, Ruben Gotay, Andrew Sisco
Second-Year: Mike MacDougal, Jimmy Gobble, Kyle Snyder, DJ Carrasco
Third-Year: Runelvys Hernandez

FAs after 2008: Runelvys Hernandez, Angel Berroa (option for 2009)

The Royals unload Sweeney's contract after 2007. Berroa's contract starts to be a bit of a burden, but not too terrible. By 2008, I think the Royals payroll could be near $60 million if the Royals are competing. Glass has shown that he is willing to spend money if the Royals are contending and put up a $53 million payroll at the start of 2004. With any improvements in revenue sharing and increased revenues from not losing 100 games, a $60 million payroll doesn't seem unreasonable. But, a significant portion of that payroll will be going to the young players. However, these increases should be offset by Sweeney's contract ending.


The Royals have about $25 million to spend this offseason, $15-20 million in 2007 and 2008. Losing Sweeney's contract helps offset a large potential payroll increase due to arbitration. So, it seems reasonable that the Royals could offer $15-20 million in 3-year contracts to a couple of their top free agent choices. The rest of the money could be spent on one or two year deals.


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