Baseball for the Thinking Fan

Login | Register | Feedback

btf_logo
You are here > Home > Baseball Newsstand > Baseball Primer Newsblog > Discussion
Baseball Primer Newsblog
— The Best News Links from the Baseball Newsstand

Wednesday, November 28, 2012

Glass willing to spend more than $70 million on Royals’ payroll

Glass also disputed the notion, generally based on industry estimates by Forbes magazine, that he has pocketed more than $100 million in operating profit since purchasing the club in 2000 from the estate of Ewing Kauffman.

“From the time we’ve owned the team until now,” Glass said, “accumulatively we’ve done no better than break even. We’ve actually subsidized it slightly during that period of time.

“Look, you might have a $65-to-$70 million payroll, but then you go out and spend $25-$30 million in amateur bonuses. Everyone says, ‘Well, your payroll is less than some of the other teams,’ but those other teams were spending less than $10 million in amateur bonuses.

Ummm, no.

RoyalsRetro (AG#1F) Posted: November 28, 2012 at 05:01 PM | 18 comment(s) Login to Bookmark
  Tags: amateur draft, david glass, royals

Reader Comments and Retorts

Go to end of page

Statements posted here are those of our readers and do not represent the BaseballThinkFactory. Names are provided by the poster and are not verified. We ask that posters follow our submission policy. Please report any inappropriate comments.

   1. Magnum RA Posted: November 28, 2012 at 05:18 PM (#4311821)
Whoa, calm down Rockefeller.
   2. The Yankee Clapper Posted: November 28, 2012 at 05:45 PM (#4311840)
“From the time we’ve owned the team until now,” Glass said, “accumulatively we’ve done no better than break even. We’ve actually subsidized it slightly during that period of time.

That might be technically true, but I suspect that it counts Glass' huge salary (and that of many family members, too) as an expense rather than a profit distribution.
   3. Walt Davis Posted: November 28, 2012 at 06:07 PM (#4311857)
spend $25-$30 million in amateur bonuses.

How? On who? Once or twice, maybe, but not every year.
   4. aberg Posted: November 28, 2012 at 06:53 PM (#4311896)
How? On who? Once or twice, maybe, but not every year.


Also far less likely than in previous years. I think the Twins spent the most on the draft this year at around $11m (could be off by some there). With restrictions on international bonuses now, it's hard to imagine any team spending more than $15m in bonuses in one year and staying within the rules. He is either unaware of the rule changes or being very misleading.
   5. Bob Tufts Posted: November 28, 2012 at 07:12 PM (#4311915)
Yeah, Glass is having real financial difficulties. Per Cot's:

David Glass purchased the Royals for $96M in 2000. Forbes magazine valued the club at $354M in March, 2012.


Cash poor and asset rich? Not necessarily. Forbes also claims the team has had positive operating income for the last nine seasons.


   6. STIGGLES is more humble than you would understand Posted: November 28, 2012 at 08:47 PM (#4311982)
That might be technically true, but I suspect that it counts Glass' huge salary (and that of many family members, too) as an expense rather than a profit distribution.
you should also factor in the fact that, because they own their own regional sports network, they can funnel revenues from their team to their wallets through their RSN.


also, iirc, aren't teams guaranteed something like 100 million in centralized revenue due to national TV contracts, MLBAM, and revenue sharing? and that's before they even play a game.
   7. HowardMegdal Posted: November 28, 2012 at 08:49 PM (#4311983)
So, about the bonuses. Royals spent $24 million, COMBINED, 2008-10. And now they're severely restricted by the new CBA. So... not so much.
   8. spycake Posted: November 28, 2012 at 09:25 PM (#4312001)
BREAKING NEWS: Royals sign amateur free agent "Davíd Vidrio". Estimated bonus: $25-$30 million.
   9. Squash Posted: November 28, 2012 at 09:35 PM (#4312004)
I sometimes wonder if they really do think we're just all a bunch of idiots, or if they're so surrounded by the echo chamber that they really do believe what they say. A combination of both, I suspect.
   10. Bhaakon Posted: November 28, 2012 at 10:12 PM (#4312033)
Glass willing to spend more than $70 million on Royals’ payroll


Translation: Glass to start drawing a salary.
   11. SM Posted: November 28, 2012 at 11:42 PM (#4312081)
In Glass' defence, he's not saying they did that. He's saying they "might" have done that.
   12. charityslave is thinking about baseball Posted: November 29, 2012 at 12:18 AM (#4312098)
It's amazing how none of these teams manage to make a profit.
   13. Bhaakon Posted: November 29, 2012 at 12:24 AM (#4312100)

It's amazing how none of these teams manage to make a profit.


Baseball owners aren't in it for profit; they're in it for the swag.
   14. charityslave is thinking about baseball Posted: November 29, 2012 at 12:45 AM (#4312105)
Baseball owners aren't in it for profit; they're in it for the swag.


It's not the money. It's the stuuufff.
   15. Bhaakon Posted: November 29, 2012 at 07:34 AM (#4312151)
It's not the money. It's the stuuufff.


Owners get to wear a fresh, new, flat brimmed, hologram-stickered hat every day of the year, and in any colors they want, regardless of the team logo. It's the new American dream.
   16. RoyalsRetro (AG#1F) Posted: November 29, 2012 at 08:58 AM (#4312182)
Your money's not here you see...its at Bubba's house, and Moose's house, and Hosmer's house....
   17. HowardMegdal Posted: November 29, 2012 at 09:03 AM (#4312186)
"In Glass' defence, he's not saying they did that. He's saying they "might" have done that."

That ain't much of a defense. They didn't do that. That rules out "might". He's the owner. He knows that.
   18. geonose Posted: November 29, 2012 at 01:53 PM (#4312568)
you should also factor in the fact that, because they own their own regional sports network, they can funnel revenues from their team to their wallets through their RSN.

The Royals got rid of their regional sports network several years ago.

You must be Registered and Logged In to post comments.

 

 

<< Back to main

BBTF Partner

Support BBTF

donate

Thanks to
Ray (RDP)
for his generous support.

Bookmarks

You must be logged in to view your Bookmarks.

Hot Topics

NewsblogA real vacation might benefit Jason Heyward more
(71 - 9:52am, Aug 24)
Last: There's a bustle in Misirlou's hedgerow

NewsblogOTP 2016 August 22: Baseball has much to teach us about politics
(310 - 9:51am, Aug 24)
Last: Bitter Mouse, Space Tyrant

NewsblogThe Rangers release Josh Hamilton
(4 - 9:51am, Aug 24)
Last: BDC

NewsblogEmergence of Benintendi gives Red Sox elite defensive outfield - providencejournal.com
(4 - 9:31am, Aug 24)
Last: Bring Me the Head of Alfredo Griffin (Vlad)

NewsblogMookie Betts makes amazing throw from right | MLB.com
(1 - 9:18am, Aug 24)
Last: Jose Remains The Most Absurd Thing on the Site

NewsblogOT: August 2016 Soccer Thread
(295 - 8:55am, Aug 24)
Last: I am going to be Frank

NewsblogThe Kansas City Royals will miss the MLB playoffs; they have too much ground to make up | The Kansas City Star
(28 - 3:24am, Aug 24)
Last: Sunday silence

NewsblogOMNICHATTER 8-23-16
(105 - 2:15am, Aug 24)
Last: Bote Man makes baseball fun again

Sox TherapyOne Week Later - Not Doomed but Probably Not Saved
(40 - 2:07am, Aug 24)
Last: the Hugh Jorgan returns

Newsblog5 one-year deals working wonders for clubs
(6 - 1:10am, Aug 24)
Last: SoSHially Unacceptable

NewsblogYasiel Puig Earning Promotion On The Field But Is It Enough
(11 - 12:04am, Aug 24)
Last: Walt Davis

NewsblogArizona Diamondbacks ponder replacing La Russa, Stewart after just 2 years
(39 - 11:33pm, Aug 23)
Last: snapper (history's 42nd greatest monster)

Sox TherapyA Few Minor League Notes
(3 - 11:19pm, Aug 23)
Last: Dillon Gee Escape Plan

NewsblogA’s Billy Butler hurt by Danny Valencia in altercation, sources say
(67 - 11:19pm, Aug 23)
Last: PASTE Transcends Almost All Generations (Zeth)

NewsblogWhy Yankees shouldn’t be so quick to trade Brian McCann | New York Post
(33 - 10:30pm, Aug 23)
Last: Captain Supporter

Page rendered in 0.1945 seconds
47 querie(s) executed