How the new agreement affects the Royals

tk13 · 08-30-2002, 06:33 PM

Here's part of an explanation about the new agreement...and it uses the Royals as an example...

http://espn.go.com/mlb/columns/stark...n/1425248.html

Q: So if a team isn't required to use its revenue-sharing money on players, why wouldn't it just stuff the money in its checking account?

A: Because now fans will know it isn't the system's fault and demand better behavior.

By the end of this agreement, the wealthy clubs will have given the middle and small-revenue teams close to $1 billion in revenue sharing along. That doesn't even count any money those clubs will get from the luxury-tax pot.

So let's take a look at how that money would start to add up. Take a team like the Royals. Let's estimate they'll get $20 million a year in revenue sharing in this deal. Add another $25 million in national TV, radio and licensing money. That's $45 million in their money market fund before they sell a ticket.

Then suppose they draw 1.7 million fans. That ought to generate another $50-55 million. We're now looking at a team with close to $100 million in revenue all of a sudden. If a team with that kind of income cuts payroll to the low $40 millions, how can it then turn around and blame it on the system?

How, in fact, can any small-market or mid-market team blame the system four years from now after taking in $1 billion in big-market welfare checks?

"I hope they don't," DuPuy said. "I hope what ends up happening is that no team has an inherent advantage in developing better players or running their team better ... and that every club comes to spring training knowing that if things go right, they have a shot to get to the playoffs and the World Series. That's the objective of this deal."

In the end, though, it was all laid out there between the lines of the agreement, not in them. And that's a potential danger zone we should all keep our eyes on verrrry carefully.

AJKCFAN · 08-30-2002, 07:04 PM

A few things though.

1. I don't trust David Glass, never have and never will. He is still legally allowed to take the money and run, fans reaction be damned. And I predict he will at the very least pocket moey to cover for all losses and to cover for the yearly profit he sees fit.

2. So the Royals get $100 million. Seems like big-market teams should stand in line to get double that, perhaps even triple that. If the Royals get $100 million, I don't care how much money they're putting back in, the Yankees are figuring to come out of this taking in $500 million per year. I mean, Jesus H. Christ, they own their own TV network.

3. It only slightly improves the Royals position. Fortunately, they are in the weakest division in baseball and perhaps in all of the professional sports leagues. It just doesn't take much to win the AL Central. The Twins have proven as much with an even lesser payroll than the Royals have.

4. The added revenue should allow the Royals to keep Carlos Beltran and Paul Byrd long term, and the year after that someone else critical to the teams success, which may be Raul Ibanez. There should be no more dumping salaries, a Glass specialty. Build a team by using money wisely on players which deserve to be rewarded. Maybe that's just me, but that's how I'd use this revenue.

5. Now that the deal is done the focus should be on ensuring Sweeney stays around long-term. The Royals have an obligation to be winners now, or Sweeney can bolt due to this provision in his contract. And you know what? If Glass keeps nickel and diming the Royals, we're never going to even dream about .500 and Sweeney will be gone by 2005.

6. There's less than 48 hours before September 1 and presumably postseason rosters need to be set. Let's add some revenue for 2003 right away. This season is lost. Trade Suppan. Trade Knoblauch. Trade Randa. Trade Perez. Trade Roberto Hernandez, if need be. Take any pitching prospects at any level. Most important thing is clear some salary and use the money much more wisely. And if you can't get anything for them, I'd release Knoblauch and demand a slash in Suppan's salary.

7. Take as many pitchers in the upcoming drafts as you can. There has got to be an ongoing stash of pitchers in this system, because they've been sorely lacking for years and years.

I'm pissed they didn't strike. I had wanted the system totally revamped. Since that won't happen, we'll see what happens now.

I don't feel very confident about the Royals future.

tk13 · 09-01-2002, 01:54 PM

I would agree that it's not going to give the Royals enough money to play with the Yankees, but I agree with your point that this SHOULD allow us to keep from dumping the most important people left and right. Hopefully Glass won't pocket the money...I'm having faith that he won't. I really don't know how competitive this agreement will actually make us....but I'd like to think that this should be enough where small market teams can at least build a decent if the front office has their head on straight....which in the Royals case looks very shaky.

spe725 · 09-03-2002, 08:25 AM

Interesting statement, but he doesn't take into account any operating expenses in his calculations, he's just talking about player payroll. Also, I was curious what ticket price he was using for his numbers and $1.7mill in attendance for $50mill in revenue equals $29 per ticket.

I would guess the average Royals ticket is around $14 tops, which would equate to $24mill in revenue. I think somebody is trying to skew the numbers a bit, and it's not just David Glass.

Regardless, though, if the Royals don't start winning they're done and they've got to work with what they've got.

lufkinchief · 09-06-2002, 01:57 PM

I was hoping MLB would strike. It seems like the owners backed down a little on the luxury tax.

As far as the Royals, I don't know what to say. It's sad to see such a proud franchise struggle. I think Pena will do a good job. The franchise needs stability. That all starts with David Glass. We need to keep the Royals "key" performers: Sweeney, Beltran, Ibanez, Byrd, etc.

What's most frustrating about the Royals is David Glass. First of all, he got off paying close to nothing for the franchise. $100 million is a deal. Secondly, how do you expect to turn a profit when you're not winning? When your product sucks, who's going to buy it? Glass needs to drop his "Wal-Mart" mentality and develop a good team.

08-30-2002, 06:33 PM
tk13 ... Join Date: Nov 2001 Casino cash: $1742500	How the new agreement affects the Royals Here's part of an explanation about the new agreement...and it uses the Royals as an example... http://espn.go.com/mlb/columns/stark...n/1425248.html Q: So if a team isn't required to use its revenue-sharing money on players, why wouldn't it just stuff the money in its checking account? A: Because now fans will know it isn't the system's fault and demand better behavior. By the end of this agreement, the wealthy clubs will have given the middle and small-revenue teams close to $1 billion in revenue sharing along. That doesn't even count any money those clubs will get from the luxury-tax pot. So let's take a look at how that money would start to add up. Take a team like the Royals. Let's estimate they'll get $20 million a year in revenue sharing in this deal. Add another $25 million in national TV, radio and licensing money. That's $45 million in their money market fund before they sell a ticket. Then suppose they draw 1.7 million fans. That ought to generate another $50-55 million. We're now looking at a team with close to $100 million in revenue all of a sudden. If a team with that kind of income cuts payroll to the low $40 millions, how can it then turn around and blame it on the system? How, in fact, can any small-market or mid-market team blame the system four years from now after taking in $1 billion in big-market welfare checks? "I hope they don't," DuPuy said. "I hope what ends up happening is that no team has an inherent advantage in developing better players or running their team better ... and that every club comes to spring training knowing that if things go right, they have a shot to get to the playoffs and the World Series. That's the objective of this deal." In the end, though, it was all laid out there between the lines of the agreement, not in them. And that's a potential danger zone we should all keep our eyes on verrrry carefully.
Posts: 54,986

08-30-2002, 07:04 PM	#2
AJKCFAN Head Chief, Esq. Join Date: Nov 2000 Location: New York Casino cash: $2081798	A few things though. 1. I don't trust David Glass, never have and never will. He is still legally allowed to take the money and run, fans reaction be damned. And I predict he will at the very least pocket moey to cover for all losses and to cover for the yearly profit he sees fit. 2. So the Royals get $100 million. Seems like big-market teams should stand in line to get double that, perhaps even triple that. If the Royals get $100 million, I don't care how much money they're putting back in, the Yankees are figuring to come out of this taking in $500 million per year. I mean, Jesus H. Christ, they own their own TV network. 3. It only slightly improves the Royals position. Fortunately, they are in the weakest division in baseball and perhaps in all of the professional sports leagues. It just doesn't take much to win the AL Central. The Twins have proven as much with an even lesser payroll than the Royals have. 4. The added revenue should allow the Royals to keep Carlos Beltran and Paul Byrd long term, and the year after that someone else critical to the teams success, which may be Raul Ibanez. There should be no more dumping salaries, a Glass specialty. Build a team by using money wisely on players which deserve to be rewarded. Maybe that's just me, but that's how I'd use this revenue. 5. Now that the deal is done the focus should be on ensuring Sweeney stays around long-term. The Royals have an obligation to be winners now, or Sweeney can bolt due to this provision in his contract. And you know what? If Glass keeps nickel and diming the Royals, we're never going to even dream about .500 and Sweeney will be gone by 2005. 6. There's less than 48 hours before September 1 and presumably postseason rosters need to be set. Let's add some revenue for 2003 right away. This season is lost. Trade Suppan. Trade Knoblauch. Trade Randa. Trade Perez. Trade Roberto Hernandez, if need be. Take any pitching prospects at any level. Most important thing is clear some salary and use the money much more wisely. And if you can't get anything for them, I'd release Knoblauch and demand a slash in Suppan's salary. 7. Take as many pitchers in the upcoming drafts as you can. There has got to be an ongoing stash of pitchers in this system, because they've been sorely lacking for years and years. I'm pissed they didn't strike. I had wanted the system totally revamped. Since that won't happen, we'll see what happens now. I don't feel very confident about the Royals future. __________________ http://www.37forever.org/BB/ <a href="http://www.37forever.org/" target="_blank">37 Forever Foundation</a>
Posts: 926

09-01-2002, 01:54 PM	#3
tk13 ... Join Date: Nov 2001 Casino cash: $1742500	I would agree that it's not going to give the Royals enough money to play with the Yankees, but I agree with your point that this SHOULD allow us to keep from dumping the most important people left and right. Hopefully Glass won't pocket the money...I'm having faith that he won't. I really don't know how competitive this agreement will actually make us....but I'd like to think that this should be enough where small market teams can at least build a decent if the front office has their head on straight....which in the Royals case looks very shaky.
Posts: 54,986

09-03-2002, 08:25 AM	#4
spe725 PC load letter? Join Date: Dec 2000 Location: Initech Casino cash: $10004900	Interesting statement, but he doesn't take into account any operating expenses in his calculations, he's just talking about player payroll. Also, I was curious what ticket price he was using for his numbers and $1.7mill in attendance for $50mill in revenue equals $29 per ticket. I would guess the average Royals ticket is around $14 tops, which would equate to $24mill in revenue. I think somebody is trying to skew the numbers a bit, and it's not just David Glass. Regardless, though, if the Royals don't start winning they're done and they've got to work with what they've got. __________________ Chris I let my moustache do ze talking
Posts: 90

09-06-2002, 01:57 PM	#5
lufkinchief Rookie Join Date: Sep 2002 Location: Lufkin, TX Casino cash: $10004900	Agreement I was hoping MLB would strike. It seems like the owners backed down a little on the luxury tax. As far as the Royals, I don't know what to say. It's sad to see such a proud franchise struggle. I think Pena will do a good job. The franchise needs stability. That all starts with David Glass. We need to keep the Royals "key" performers: Sweeney, Beltran, Ibanez, Byrd, etc. What's most frustrating about the Royals is David Glass. First of all, he got off paying close to nothing for the franchise. $100 million is a deal. Secondly, how do you expect to turn a profit when you're not winning? When your product sucks, who's going to buy it? Glass needs to drop his "Wal-Mart" mentality and develop a good team.
Posts: 1