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Royals Payroll Plus

We have discussed payroll and team control issues for Royals players frequently so I thought I'd put together something which shows all of the information in one place.  My primary source is Cots Baseball Contracts, so I think I have all of the numbers right.  The arbitration timeframe is determined by service time and the rules are a bit complicated, so it is often unclear when a player becomes arbitration eligible or reaches free agency.  So, take a look at this and let me know if you think it is off anywhere.

The following color codes are used in this table:

Pre-arbitration

Arbitration

Free agency

  Royals_payroll_plus_medium

 * This is the only number which is really speculative.  After being drafted, Hochevar signed a 4 year/$5.3M major league contract.  It has been reported that his salary for this year is $1.2M.  Other than that, we don’t know the specific terms of the contract.

 There are some other specifics that I did not include, like buyout amounts on options, performance incentives and escalator clauses.

 

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+1

That might be the worst contract in Royals history. Oops. I just remembered Mark Davis. Sigh. – TL

by timlacy on Jul 8, 2008 9:09 PM EDT to parent up   0 recs

Thanks for putting this together

We should sticky this so its always up for handy reference.

Relive Royals History at royalsretro.blogspot.com

by RoyalsRetro on Jul 8, 2008 7:41 PM EDT   0 recs

Gotta like

Only about $37 million in guaranteed contracts for next year. That is good payroll flexibility.

Gotta hate $1.9 committed to Ross next year. Its not a ton of money, but still, Dayton could have spent that on a gold plated toilet and been happier with his investment.

Relive Royals History at royalsretro.blogspot.com

by RoyalsRetro on Jul 8, 2008 7:43 PM EDT   0 recs

I did a quick and dirty estimate for next year's payroll

...including arbitration estimates and came up with just over $60M. This includes keeping guys like Gathright, Peralta, Gobble and German, but not Bale, Duckworth, Smith, or Hudson .

This is just my opinion. I could easily be wrong.

by NYRoyal on Jul 8, 2008 8:13 PM EDT to parent up   0 recs

Not too shabby

And we can cut bait with some of those guys by non-tendering them if we choose.

Relive Royals History at royalsretro.blogspot.com

by RoyalsRetro on Jul 8, 2008 8:32 PM EDT to parent up   0 recs

Hopefully we can trade some of those guys

I don’t think I would non-tender Gathright, Peralta, Gobble or German. They are all pretty cheap and tradeable for something.

This is just my opinion. I could easily be wrong.

by NYRoyal on Jul 8, 2008 8:35 PM EDT to parent up   0 recs

Luke Hudson

It’s amazing that guy continues to get almost .5 M a year guaranteed.

by Top Ramen on Jul 9, 2008 10:15 AM EDT to parent up   0 recs

we might be happier with the gold plated toilet...

but its quite apparent that dayton likes rossie

TPJ...you're dead to me

by billybeingbilly on Jul 8, 2008 8:17 PM EDT to parent up   0 recs

Someone has been reading DRays Bay

Nice job.

Bale is not under contract for 2009 (but is arbitration eligible).

Gobble will not be eligible for free agency until after the 2010 season.

Callaspo very likely will be a super two arbitration eligible in 2010.

Olivo might still be under club control for next year, unless there is a special clause in his contract, which there very well might be—otherwise, I think he misses free agency by one day of service time.

by Gopherballs on Jul 8, 2008 8:46 PM EDT   0 recs

Actually I got the idea from Soxtalk.com

I think you are right on Bale, Gobble and you may be right on Callaspo. Olivo has a mutual option for next year and I think it extremely unlikely that both sides will exercise their option.

This is just my opinion. I could easily be wrong.

by NYRoyal on Jul 8, 2008 8:56 PM EDT to parent up   0 recs

Callaspo will be at 2 years 135 days

Super Two eligibility is usually between 130 and 140.

With Olivo, even if both sides decline their half of the option, Olivo is still subject to the reserve clause, as his MLB service time after this season would be 5 years 171 days (one day shy of the 172 days needed to qualify as a full year). Under the CBA, 6 full years of service time are needed to qualify for free agency. Unless the contract has a “no arbitration offer” clause or similar language (like some of the Japanese players have included in their contracts), Olivo would not qualify for free agency as a sixth-year player.

by Gopherballs on Jul 9, 2008 1:02 AM EDT to parent up   0 recs

Wouldn't you think that if the contract has a mutual option that it would also have a no arbitration offer?

Otherwise, the mutual option (described below) would be pointless surplus language in the contract. I doubt Olivo’s agent is stupid enough to miss that.

if club exercises 2009 option, Olivo may void and forfeit buyout (option must be exercised by 12 days after end of World Series)

This is just my opinion. I could easily be wrong.

by NYRoyal on Jul 9, 2008 1:08 AM EDT to parent up   0 recs

Not necessarily

The mutual option would not be pointless surplus language because Olivo may think he can get more in arbitration than $2.7 million—the mutual option protects Olivo from losing arbitration as leverage in setting his 2009 salary.

by Gopherballs on Jul 9, 2008 1:40 AM EDT to parent up   0 recs

not a bad living if you can make it...

if we didnt have so many just dead spots on our roster i wouldnt mind having him up here for a power bat off the bench

TPJ...you're dead to me

by billybeingbilly on Jul 9, 2008 12:37 AM EDT to parent up   0 recs

Gotta love those .200 hitters with occasional power

What doesn't kill us only brings us closer to death

by ksuroyals on Jul 9, 2008 1:49 AM EDT to parent up   0 recs

Pop Pop Pop

Pop pop pop music.

I used to be an A's fan until they left town and got good.

by philofthenorth on Jul 9, 2008 7:36 AM EDT to parent up   0 recs

How much did we pay Hideo Nomo?

And how did Chin Hui Tsao get a guaranteed contract? That guy can’t stay healthy for more than a week.

Relive Royals History at royalsretro.blogspot.com

by RoyalsRetro on Jul 9, 2008 10:47 AM EDT   0 recs

I believe Nomo received only major league minimum for the period of time he was with the Royals

And Tsao got a guaranteed minor league contract, I believe. He’s worth a $600K gamble.

This is just my opinion. I could easily be wrong.

by NYRoyal on Jul 9, 2008 12:09 PM EDT to parent up   0 recs

There were probably several teams after Tsao

and we were the only ones to guarantee.

I follow the Tao of Steve (Balboni)

by jackie ballgame on Jul 9, 2008 11:57 AM EDT   0 recs

Nice work, NY,

and great to see that Berroa contract dying. I second the motion to make this sticky as a good reference.

A mind without purpose will walk in dark places.

by NHZ on Jul 9, 2008 12:22 PM EDT   0 recs

No, I'm going to upgrade it

A few corrections need to be made, and I’m going to try to add columns for service time and options remaining.

This is just my opinion. I could easily be wrong.

by NYRoyal on Jul 9, 2008 12:31 PM EDT to parent up   0 recs

Good call

Though my seconding still stands…once you’ve made said corrections.

A mind without purpose will walk in dark places.

by NHZ on Jul 9, 2008 12:51 PM EDT to parent up   0 recs

Can we sticky-ize posts here?

This is just my opinion. I could easily be wrong.

by NYRoyal on Jul 9, 2008 12:58 PM EDT to parent up   0 recs

I'm sure Will could find a way to swing it,

but otherwise I think recommended posts hang around for a longer period of time.

A mind without purpose will walk in dark places.

by NHZ on Jul 9, 2008 1:33 PM EDT to parent up   0 recs

He's always got the option

Of creating a sidebar link just like links to all the other blogs and Max’s retro articles and whatnot.

Sarcasmâ„¢. It's the new gravy.

by jonfmorse on Jul 9, 2008 5:04 PM EDT to parent up   0 recs

Thanks, excellent point

A mind without purpose will walk in dark places.

by NHZ on Jul 10, 2008 12:06 PM EDT to parent up   0 recs

This is a good place to remind every one

of a quote from Dayton last year, in which he said he envisions a 80-85 million payroll, assuming attendance can get back to where it belongs (2.5 m +).

Now, I assume he was talking in “today’s” dollars when he made those comments, so obviously his target should increase with the same rate as baseball inflation. I think this has been 10-15% historically? If so, the franchise is still a long way from his stated goals. That begs the question: Will Glass continue to increase his financial commitment? I think it’s a good question, because I really doubt the stadium renovations by themselves will increase attendance to where GMDM wants it – I think it will take winning to do that. Can they win with the payroll level they currently have, and a minor league system virtually bereft of hitting prospects? If not, then how many years until a beefed up system starts to bear fruit, and would that amount of time sour Glass on the entire process, assuming we tread water between 70 and 85 wins for several more years, with no playoffs?

by loyal2sdad on Jul 9, 2008 2:11 PM EDT   0 recs

Attendance does not need to increase necessarily

For the team to have more revenues. The renovations are supposed to add more revenue streams in more “premium” seating and suites, more food options and more stuff to buy (Kevin Uhlich brags they’ll have more “points of sale” than any stadium in the big leagues.)

I think the renovations will give them more money to play with regardless, and it will also likely put pressure on them to spend more. After all, Jackson County taxpayers just handed them millions in subsidies.

Relive Royals History at royalsretro.blogspot.com

by RoyalsRetro on Jul 9, 2008 2:24 PM EDT to parent up   0 recs

And the money they get from MLB goes up every year

Revenue sharing, MLB.com money, etc. I think they can easily afford a $80M payroll next year and I have a feeling that Glass is willing to do it.

This is just my opinion. I could easily be wrong.

by NYRoyal on Jul 9, 2008 3:10 PM EDT to parent up   0 recs

Glass Should be more than willing to carry at least a $80 with

current attendance totals and should bump it up to 100-125M if attendance would climb to that 2.5M total that Dayton points to. Those are numbers I plucked out of thin air but for Glass to continually profit on this team despite putting a Top End Effort to aquire other talent would be disheartening. 80 M would basically add only around 20 M to what NY has figured up. What is 20 M really gonna get you, one significat talent and one up and comer? This team probably needs more than that. Glass has made a significant amount of money off of this team. Give them something back.
Here is Forbes article I’m sure you have all read already.

“It’s a scam,” says Robert Gough, director of the Jackson County Taxpayer Association. “Glass kept a low profile, and everyone said we were going to lose the team if we didn’t pass this tax.” Rewards for losers, tax breaks for all. Is this what Abner Doubleday had in mind?

Who cares about RBI's, how many HDB's you got?

by kcscoliny on Jul 9, 2008 6:21 PM EDT to parent up   0 recs

Hell.

I’ll throw in $80 if that’s all it takes.

(Kiiidding)

Royals, NBA, Golden Hurricane, Hawkeyes, Chiefs, and KU basketball, in that order.

by Rowyal on Jul 9, 2008 6:30 PM EDT to parent up   0 recs

Municipal capital investment makes sense

It’s good public policy. But I don’t think good public policy is what Abner Doubleday had in mind (actually, he didn’t really have baseball in mind either).

This is just my opinion. I could easily be wrong.

by NYRoyal on Jul 9, 2008 6:32 PM EDT to parent up   0 recs

This is a good place to remind every one

of a quote from Dayton last year, in which he said he envisions a 80-85 million payroll, assuming attendance can get back to where it belongs (2.5 m +).

Now, I assume he was talking in “today’s” dollars when he made those comments, so obviously his target should increase with the same rate as baseball inflation. I think this has been 10-15% historically? If so, the franchise is still a long way from his stated goals. That begs the question: Will Glass continue to increase his financial commitment? I think it’s a good question, because I really doubt the stadium renovations by themselves will increase attendance to where GMDM wants it – I think it will take winning to do that. Can they win with the payroll level they currently have, and a minor league system virtually bereft of hitting prospects? If not, then how many years until a beefed up system starts to bear fruit, and would that amount of time sour Glass on the entire process, assuming we tread water between 70 and 85 wins for several more years, with no playoffs?

by loyal2sdad on Jul 9, 2008 2:12 PM EDT   0 recs

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