The Royals are located in MLB's third-smallest market and have the league's "worst local television contract," but the team can still "afford a payroll close" to $130M due to several key factors, according to Sam Mellinger of the K.C. STAR. One of MLB's lowest revenue clubs "has grown into a power -- and part of the top half of spenders." This involves "increased ticket revenue," but also "bigger revenue sharing and a counter-intuitive spending pattern across the majors." Even with their "rotten local TV deal," the Royals' ticket revenue "has nearly quadrupled in the last 10 years to around" $80M per year. Along with that, the league’s revenue sharing "has continued to increase." For the last 10 years, David Glass has been a "model small-market owner." He has "refused to expose himself to much risk of yearly operating losses and stands to make a fortune if and when he decides to sell the club." But he has also "been consistent in putting most of the profits back into the club, allowing for infrastructure and talent improvements at all levels." The Royals "aren’t the only small-market team spending," but they are "spending smarter." Mellinger noted the Royals also have "taken advantage of a financial structure that is much different now than 10 or more years ago." Revenue sharing has "continued to increase, and support for small-money teams exists in ways that were once only talked about" (K.C. STAR, 1/31).
CELEBRATE GOOD TIMES: The Royals yesterday unveiled a new billboard in K.C. depicting C Salvador Perez "and his water cooler celebration." The billboard, created by the Royals and locally based Walz Tetrick Advertising, shows Perez "dumping out a three-dimensional Gatorade bucket." The sign also "contains the line 'Forever Royal,' which will continue to be the team's slogan in 2016" (KANSASCITY.com, 2/1).
