The possibilities of the Royals being sold to a local
buyer are examined by Jeffrey Spivak of the K.C. STAR. The
team is expected to be sold next year and its board of
directors would prefer to sell locally. The "front-runner"
for buying the team is Wal-Mart CEO & Royals Chair David
Glass, who lives and works in Arkansas. With the exception
of Royals Exec George Brett, who has formed a group
interested in the team, no local buyer has stepped forward.
Greater K.C. Sports Commission President Joe McGuff: "It is
disappointing that there is no one locally or no group
locally that has expressed an interest in the club." K.C.-
based Growth Industries Enterprises Inc. Chair Del Dunmire:
"I've looked around at the alternatives in this community,
and there aren't any." Even if no local buyer comes
forward, the Royals won't be "easy" to move. Besides the
fact MLB today "frowns" on team relocation, a "temporary
Royals succession plan" from former Owner Ewing Kauffman
includes an "unusual clause." It allows the Royals' board
to pick an owner "who will agree to keep (the team) here."
Board members don't have to accept the highest bid if they
believe another bidder is "more committed" to K.C. Also,
the Royals have a lease with Jackson County, "although the
county could be in default if it can't continue paying for
Kauffman Stadium repairs." But the STAR's Spivak notes
potential out-of-town bidders will "find a potential
loophole" in Kauffman's plan, which "includes no penalty if
the owner moves the franchise." Royals officials are aware
of this provision and will push for "multimillion-dollar
damages as a condition" to any sale (K.C. STAR, 12/12).
CBA BREAKDOWN: The financial future of the Royals is
examined by Charles Crumpley of the K.C. STAR. The new CBA
should bring the Royals net additional revenue of $3.7M.
The new agreement is expected to send $5M to the Royals in
'96, $5.7M in '97 and up to $15M by 2001. But the new
system "takes away" about $2M a year that the Royals
received under a "now-dead revenue-sharing system in which
visiting teams got a share of gate receipts." Crumpley:
"The new money, combined with the Royals' vigorous cost
cutting of the last few years, should nudge the Royals into
profitability by the end of next year." The team lost more
than $20M in '94 and '95, but Kauffman "left behind" enough
money to help cover the losses for six years. Also, the
Royals "may get" expansion fees of about $9M spread over
three years (K.C. STAR, 12/12).
