How Ian Kennedy's backloaded contract affects the Royals budget

We have been waiting on contract specifics for weeks since learning Ian Kennedy signed with the Royals earlier this month. Today we have the breakdown on the financials according to Jon Heyman.

Ian Kennedy breakdown: 7.5M in '16, 13.5M in '17, 16M in '18, 16.5M in '19, 16.5M in '20. $70M guarantee. #royals

— Jon Heyman (@JonHeyman) January 27, 2016

It is no surprise the deal comes heavily backloaded, as the Royals have a ton of financial obligations in 2016 and 2017, but much more financial flexibility beyond that. Here is how Kennedy's deal affects the Royals' budget.

Up to $6 million of Jason Vargas' contract is insured if he misses time in the 2016 season due to Tommy John surgery.

The Royals will likely have a franchise-record Opening Day payroll over $130 million, an 18% increase over last year's franchise-record $113 Opening Day payroll. The Glass family has given this team the resources it needs to win, now the players have to earn their keep on the field.