Dutton: Glass says any revenue from stadium renovations will go to payroll

keg in kc · 12-11-2002, 07:17 AM

Glass says any revenue from stadium renovations will go to payroll

By BOB DUTTON
The Kansas City Star
Posted on Tue, Dec. 10, 2002

Just imagine what the Royals could do this off-season with an additional $15 million in payroll.

Those extra dollars could help them hold on to free-agent pitcher Paul Byrd, minimize the need to trade third baseman Joe Randa and aid efforts to negotiate a long-term deal with Carlos Beltran.

And possibly more.

That's why the club is bullish on its new agreement with the Jackson County Sports Authority regarding proposed renovations at Kauffman Stadium.

"In small markets like Kansas City," Royals owner David Glass said, "it's important that we grow our own revenues. And whatever we get, we've got to put that back into payroll."

The Royals project the renovations will lead to an increase in attendance that should generate an additional $15 million each year in revenue once the project is completed for the 2007 season.

"We won't be able to do everything we wanted to do in updating the stadium," Glass said. "But we will be able to make it a lot better for our fans.

"Kauffman Stadium is a great place to watch a ballgame. But it's 30 years old, and we need to take steps to keep it up to current standards."

The agreement, announced Monday, is contingent on voters in the metro area approving a one-quarter cent bistate sales tax. In return, the Royals will extend their stadium lease by 14 years to 2029.

Under terms of the agreement, the Royals and Chiefs will split 50 percent of the proceeds from the bistate tax. The other 50 percent will benefit the arts in the metro area.

The pact also shifts responsibility for stadium maintenance from the county to the two teams. Further, the Royals and Chiefs agreed to end their longtime opposition to the imposition of user fees on ticket prices.

"That's a major concession on our part," said Mark Gorris, the club's senior vice president for business operations. "But it was felt that it would be easier to get the tax passed if the people using the stadium paid a fee."

The fee is likely to be about 5 percent -- or 50 cents on a $10 ticket.

The Royals have long viewed the renovation of Kauffman Stadium, which opened in 1973, as the centerpiece of their efforts to boost revenues.

Glass also fought hard last summer to gain additional revenue sharing in a new four-year labor agreement that takes effect next season. Efforts are also under way to increase broadcast revenues.

All new money, Glass said, will be plowed back into payroll.

"I've always said I wanted to operate this thing on a break-even basis over the long term," he said. "If I wanted to make money, I would have put my money in something else."

12-11-2002, 07:17 AM	Topic Starter
keg in kc oxymoron Join Date: Feb 2001 Location: OP/KC/Whatever Casino cash: $9556299	Dutton: Glass says any revenue from stadium renovations will go to payroll Glass says any revenue from stadium renovations will go to payroll By BOB DUTTON The Kansas City Star Posted on Tue, Dec. 10, 2002 Just imagine what the Royals could do this off-season with an additional $15 million in payroll. Those extra dollars could help them hold on to free-agent pitcher Paul Byrd, minimize the need to trade third baseman Joe Randa and aid efforts to negotiate a long-term deal with Carlos Beltran. And possibly more. That's why the club is bullish on its new agreement with the Jackson County Sports Authority regarding proposed renovations at Kauffman Stadium. "In small markets like Kansas City," Royals owner David Glass said, "it's important that we grow our own revenues. And whatever we get, we've got to put that back into payroll." The Royals project the renovations will lead to an increase in attendance that should generate an additional $15 million each year in revenue once the project is completed for the 2007 season. "We won't be able to do everything we wanted to do in updating the stadium," Glass said. "But we will be able to make it a lot better for our fans. "Kauffman Stadium is a great place to watch a ballgame. But it's 30 years old, and we need to take steps to keep it up to current standards." The agreement, announced Monday, is contingent on voters in the metro area approving a one-quarter cent bistate sales tax. In return, the Royals will extend their stadium lease by 14 years to 2029. Under terms of the agreement, the Royals and Chiefs will split 50 percent of the proceeds from the bistate tax. The other 50 percent will benefit the arts in the metro area. The pact also shifts responsibility for stadium maintenance from the county to the two teams. Further, the Royals and Chiefs agreed to end their longtime opposition to the imposition of user fees on ticket prices. "That's a major concession on our part," said Mark Gorris, the club's senior vice president for business operations. "But it was felt that it would be easier to get the tax passed if the people using the stadium paid a fee." The fee is likely to be about 5 percent -- or 50 cents on a $10 ticket. The Royals have long viewed the renovation of Kauffman Stadium, which opened in 1973, as the centerpiece of their efforts to boost revenues. Glass also fought hard last summer to gain additional revenue sharing in a new four-year labor agreement that takes effect next season. Efforts are also under way to increase broadcast revenues. All new money, Glass said, will be plowed back into payroll. "I've always said I wanted to operate this thing on a break-even basis over the long term," he said. "If I wanted to make money, I would have put my money in something else."
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