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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 06:01 PM | 18 comment(s) Login to Bookmark
  Tags: amateur draft, david glass, royals

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   1. Magnum RA Posted: November 28, 2012 at 06:18 PM (#4311821)
Whoa, calm down Rockefeller.
   2. The Yankee Clapper Posted: November 28, 2012 at 06:45 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 07:07 PM (#4311857)
spend $25-$30 million in amateur bonuses.

How? On who? Once or twice, maybe, but not every year.
   4. andrewberg Posted: November 28, 2012 at 07:53 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 08:12 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. steagles Posted: November 28, 2012 at 09:47 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 09:49 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 10:25 PM (#4312001)
BREAKING NEWS: Royals sign amateur free agent "Davíd Vidrio". Estimated bonus: $25-$30 million.
   9. Squash Posted: November 28, 2012 at 10:35 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 11:12 PM (#4312033)
Glass willing to spend more than $70 million on Royals’ payroll


Translation: Glass to start drawing a salary.
   11. SM Posted: November 29, 2012 at 12:42 AM (#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 01:18 AM (#4312098)
It's amazing how none of these teams manage to make a profit.
   13. Bhaakon Posted: November 29, 2012 at 01:24 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 01:45 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 08:34 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 09:58 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 10:03 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 02:53 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.

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