This is an excellent piece from Royals Review that complements Mellinger's column:
http://www.royalsreview.com/2012/11/...pen-his-wallet
Some choice excerpts:
The idea the Royals have to clear payroll to add a player at this point in the offseason is questionable. According to Forbes, in 2011 (the most recent year where data is available) the Royals as a franchise are worth $354 million. The percentage of debt the Royals carry is around 15 percent, which is fairly low. Their revenues in 2011 were $161 million. Attendance was up marginally last year and throw in the windfall from the All-Star Game and you're looking at a nice increase for the just completed 2012 season.
We all know about the profits. Oh, the profits. The Glass family banked over $28 million dollars in 2011. That was built on the back of an insanely low payroll, thanks to the largesse of Gil Meche and a youth movement wholly supported by the fans.
According to the numbers obtained by Forbes, in the Dayton Moore era, the Royals have been operating at an annual profit of around $8 million. (2011 was certainly the outlier, buffeted by that low payroll. At least we hope it was an outlier.) While the cash registers have been ringing, the value of the team has gone from $282 million in 2006 to $354 million in 2011.
In other words, this franchise is in strong fiscal shape.
The idea that the Royals are up against their payroll ceiling for the 2013 season is complete and utter bullshit. It's insulting. It is a slap in the face of a fanbase that has, by and large, remained patient throughout The Process. Those who bought tickets. The ones who purchased merchandise. They attended FanFest. (Remember FanFest?) It is a mockery of an electorate that approved hundreds of millions in stadium renovations. If David Glass pushed his payroll to $80 million for next year, he would still make money. Would he make his normal $8 million? Probably not. But I would wager fielding a competitive team would boost attendance that could help absorb some of the cost. And with the success of other outlets, such as MLB Advanced Media, revenues are in fine shape.
In 2010, the Royals had a record Opening Day payroll of around $75 million. They still made $10 million on the season. They wouldn't - and shouldn't - have a problem with an $80 million payroll. But with an increase in revenue streams, really, a $90 million ceiling feels about right.
Yes, $90 million. The Royals are absolutely built to absorb that kind of payroll.
****
The Royals can still get creative with a free agent signing. We are entering our third season of The Process at the major league level. We have a fairly good idea about the first wave. We know the strengths and weaknesses. There are gaps to fill. David Glass and Dayton Moore had to have known there were going to be gaps. They had to have known that when the window of opportunity opened, they were going to have to act, separate from the draft and separate from player development. Yes, it stinks that every single pitching prospect has stalled. Yet, there absolutely had to have been a contingency plan in place to supplement The Process. To not would be akin to baseball malpractice. Sadly, it wouldn't be the first time such an act was committed in Kansas City.