The Twins Should Be Embarrassed to Be Outspent by the Royals

[Cody Christie]

For many fans, the Twins’ payroll has been a focal point throughout the winter because of uncertainty surrounding the team’s television contract. Now, the team found out another, much smaller-market AL Central foe is spending in a big way, which is an embarrassing proposition.

Image courtesy of Jeffrey Becker-USA TODAY Sports

On Monday, the Royals announced a long-term extension with Bobby Witt Jr., their All-Star shortstop. It’s an 11-year deal worth at least $288.7 million, but there is a potential for it to be worth 14 years and $377 million if the Royals pick up a club option after the 11th season. Witt can also opt out of the contract after the seventh, eighth, ninth, and 10th years. To put this in perspective, the largest contract in Royals history before this deal was a four-year, $82-million contract with Salvador Perez. It is a franchise-altering move that sends shockwaves through the entire AL Central. 

Kansas City has been aggressive this winter, signing multiple players before inking Witt to a massive contract. Adam Frazier, Hunter Renfroe, Michael Wacha, Chris Stratton, Will Smith, and Seth Lugo all signed as free agents, from the middle of December through the middle of January. While those players might not move the needle for the Royals immediately, it shows their fans that the team is attempting to get better, after a disastrous 2023 season that saw the club lose 106 games and finish in last place in a dreadful AL Central.

Adding all those salaries into the team’s 2024 payroll, Kansas City will have a payroll close to $138 million, with a luxury tax payroll of $161 million, the highest total in the AL Central. As currently constructed, the Kansas City Royals have the AL Central’s highest luxury tax payroll, projected at $161 million, followed by Minnesota ($154 million), Cleveland ($131 million), Chicago ($129 million), and Detroit ($119 million). 

The Twins ended last season with an estimated final payroll total of $159 million, a team record. Minnesota’s front office has been direct with fans that the payroll would drop this winter because the team’s television contract expired at the end of last season. A loss of $55 million in television revenue means the team’s payroll will likely sit between $125-130 million for next season. However, the team is close to a one-year contract to return to Bally Sports that would pay the club north of $40 million. While that deal isn’t official, there is no indication from the team that they will increase payroll when a new contract is in place. 

There are multiple reasons for the Twins to be embarrassed by the Royals outspending them in any given season. Market size is one of the most significant indicators of payroll spending, so teams like the Dodgers and Yankees have the highest payrolls from one season to the next. According to Nielsen, Kansas City ranks as the 34th-biggest television market in the United States, behind multiple cities without an MLB team (Columbus, Hartford, San Antonio). Minneapolis-St. Paul’s market ranks 15th, just ahead of Denver and Miami. Last season, the Twins’ payroll ranked 16th in MLB, while the Royals spent $60 million less than Minnesota and ranked 24th. 

The Royals’ television contract is also under the Bally Sports umbrella, with their deal worth a reported $48-52 million per season. Like the Twins, their television future beyond 2024 is likely headed for a different home, but it didn’t stop the Royals from spending big. Many teams have been passive on the free-agent market this winter, but Kansas City has targeted players that fit specific needs and spent money despite the uncertainty of future television revenue. Fans can point to the roster and see how the team is improving, which is something Twins fans haven’t been able to do this winter.

All this is made more galling, though, by the fact that the Twins are squarely in the middle of a competitive window they need to fight to keep open, while the Royals are near the nadir of an ugly rebuild. Kansas City hasn’t made the playoffs since they made back-to-back trips to the World Series in 2014 and 2015. During that stretch, there have been some dark seasons for the Royals, including three seasons with 97 losses or more. Minnesota has had four playoff appearances since Kansas City last played in October, which results in more revenue.

The Twins also average 700,000-800,000 more fans in attendance per season, which is also tied to the team’s spending. The team has expressed optimism about burgeoning attendance for 2024, based on season ticket sales in the wake of their playoff wins last season. There is no defensible reason for the Twins to spend less money than the Royals, but that's the current reality which will add another layer of frustration for Minnesota fans in what has already been a frustrating offseason. 

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Should the Twins be increasing their payroll? Is it fair to compare Minnesota and Kansas City? Leave a COMMENT and start the discussion.

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[CharlieDee]

For the first time in 8 or 9 years the Royals are spending some serious money.  I don't think that's a reason for the Twins, or any other team, to feel "embarrassed".

[Riverbrian]

The Royals need to produce a better record than the Twins before embarrassment sets in. 

[weneedneshek]

A lot of people (even myself for a little bit) gave the team every benefit of the doubt when it came to the TV contract/payroll slash excuse. If payroll still ends up with an almost $40M cut by opening day despite the new contract (which seems like a $10M cut at most??) we should all be rightfully angry. Our competitive window is now, there are no more excuses

[GKuehl]

I'm not particularly fazed by the Royals spending money, especially because the owner is incentivized to spend to drum up community support to build a new stadium.

But if the Twins end up signing a TV deal in the range of $40 million for 2024, it's unfathomable that we didn't at least pursue someone like Jordan Montgomery or Blake Snell to be our #2 SP. Even with a roughly $15 million drop in payroll, there should have been room to sign either of those pitchers to a 1-year, $30 million or a 3-year, $75 million contract. 

[DJL44]

It is crazy, given the market size advantage, that the Twins will end up with a local TV contract worse than Cleveland and Kansas City.

[Fire Dan Gladden]

Regardless of the Royals actions, the Twins and Twins Fandom should all be embarrassed by this offseason.  The fact that the Royals, who were/are basically in the same limbo as the Twins and it did not stop them from making moves basically makes Ownership look selfish and short-sighted.  Very, very sad...

[Cory Engelhardt]

I'm not losing sleep over it, and I'm certainly not embarrassed.

[Brandon]

The Royals don’t have a Hockey team and NBA team to siphon even more money away from their Baseball team. While I think they had the money to resign Gray if you take out Santana and Desclarini especially.  That is annoying but good for the Royals for spending some cash.  They are still behind the Twins but much better than they were. I wonder if the Taylor Swift affect is helping them too financially.

[MMMordabito]

What a terrible, whiny article.

They signed a franchise cornerstone to the biggest deal in club history and sit $7 mill ahead of the Twins on 2/5/2024.

[Hosken Bombo Disco]

23 minutes ago, Cory Engelhardt said:

I'm not losing sleep over it, and I'm certainly not embarrassed.

But aren’t you galled? 🙂

[Craig Arko]

3 minutes ago, Hosken Bombo Disco said:

But aren’t you galled? 🙂

Or at least bladdered?

[chpettit19]

I don't know if embarrassing is the right word, but it certainly doesn't make me thrilled that the Twins are seeing their competitive window open and are choosing to slash payroll instead of trying to take advantage of a super weak division. KC and Detroit are trying. I know we all like to point at the young Twins players and say we're golden because they're going to improve, but those teams have young guys that should improve as well. Along with Cleveland. I think our perceived superiority in the central is overstated. I think it's a tighter race than people expect.

Not because those other 3 teams are great, but because the Twins aren't either. Cleveland won this division going away in 2022 with young talent that was certain to improve and give them the chance to dominate this division. The Twins standing pat and making no overall improvement to the 2024 team has kept the door open for the other teams to make a run. If I believed Twins ownership cared about winning I'd say they should be embarrassed. But I don't think that's their priority so I don't think it's the right word for them. But it certainly isn't encouraging as a fan that they're getting outspent by KC and we're watching 2 other division teams at least make noticeable efforts to improve their team overall while the Twins seem to be content shifting pieces around while not increasing their overall talent. We'll see who's young talent is able to carry them this year. I think it'll be more of a battle than folks expect.

[Linus]

I don’t care what the Royals spend but the Pohlad family should be embarrassed by this off season. They got caught completely unprepared for this TV situation and double down by pinching what equates to nickels and dimes after their first playoff in forever. They had to have known they were going to get some TV money yet they act like it is zero. I personally don’t understand why the fan base isn’t more pissed. I guess everyone has just been conditioned to not expect anything different. 

[Whitey333]

It is interesting.  I hope the Royals do well this year.  The Twins could use good competition.

[Eris]

Is Byron Buxton’s $9.5 million in incentives included in the Twins payroll figures. 

[LastOnePicked]

We'll see how this works out for them. Sounds like they took the rebuild seriously, which is what teams should do. You lose big for awhile, you save, you build a young core, you try to spend more and win big when the core matures.

It'll be interesting to contrast that with the Twins approach, where you make a single big FA splash signing, you work trades and you otherwise nibble and try to perennially hover around .500 and see if the breaks bounce your way into and through the postseason.

We'll just have to see which organizational philosophy leads to greater success in 2024 and beyond. 

[howeda7]

We don't need to base our feelings on the Royals payroll. But the Twins payroll last season was $159 million. Even factoring in that they may have lost ~$10 million and might lose another $15 million in TV $$, they still should be at least in the $135 million range. They are currently ~$120. If they spend another $15 million to upgrade the starting rotation and bring back Taylor, I'm OK with it. If they stand pat at $120 million while the divisions is there for the taking, yes they should be embarrassed.

[Hosken Bombo Disco]

19 minutes ago, Craig Arko said:

Or at least bladdered?

Constipated? 
/obligatory 

[big dog]

I don't think spending $32 million for two years of Michael Wacha (ages 34 and 35) is all that commendable, personally, but you can tell me in two years how that worked out.

Although compared to $45 million for three years of Seth Lugo (ages 34, 35, and 36)...

[Cory Engelhardt]

3 minutes ago, Hosken Bombo Disco said:

Constipated? 
/obligatory 

I knew that turkey sandwich I had at lunch wasn't right at the time :)

[tony&rodney]

Perhaps the Twins can develop some plans to solve their media issues before the 2025 season. The roster is more or less set and the $120-125 million budget for players is fine. 

Good for the Kansas City fans that their team is building toward a stronger and more competitive team. It is a fine city and area that has always supported the Royals.

 

[Cory Engelhardt]

5 minutes ago, Hosken Bombo Disco said:

Constipated? 
/obligatory 

Higgledy-piggledy

[FilthyMogwai]

When the first mesage out of the front office after packing the stadium in a playoff matchup against Houston were, "We're cutting payroll", I was the one that was embarrassed. 

Embarrassed that I continue to allow this team to test my fandom regularly. I get all the factors that lead to their decision, but this team is going to continue to be a low-budget baseball team hunting for FA scraps and trying to cling to the talent they do have.

Baseball's economics suck and I'm embarrassed that it's my favorite sport. 

I honestly believe there is value and revenue to be made if you build a consistently excellent team that is a legit contender every year. You don't need to sign the top FA every year, but filling the holes on your roster with low budget players and prayers isn't a serious approach to winning.

[Major League Ready]

I am a little fuzzy on where you are coming up with these numbers.  According to Spotcast, Kansas City's projected Total Payroll is $108,167,477 not $138M.  Why are you comparing the Luxury Tax Payroll instead of using the projected payroll total.  I guess I am asking why the Luxury tax number is a better representation than their actual payroll.

Royals Payroll

[chpettit19]

2 minutes ago, big dog said:

I don't think spending $32 million for two years of Michael Wacha (ages 34 and 35) is all that commendable, personally, but you can tell me in two years how that worked out.

Michael Wacha is going into his age 32 season, not 34. Here's a couple of Twins pitchers and some guys who are older than Wacha. From the last 2 years. So that's actually Wheeler's ages 32-33 seasons that the Royals just signed Wacha for. 

[CRF]

KC is definitely spending a lot more dough since their ownership change. I don't know if the Pohlads and our FO should be embarrassed, but it should at least get their attention. That's a huge chunk of change they're shelling out for Witt.

[Nashvilletwin]

Royce Lewis today 

[jorgenswest]

Not embarrassed and I appreciate the Pohlad’s. They have to be among the best ownership groups over my time in Minnesota.

The Lakers and North Stars moved. Norm Green and Bob Short are slotted in on the bottom. Is there any other clearly  ahead of the Pohlad’s? The Pohlad’s must be preferable to the Griffith’s. Max Winter might top the list. I think he sold to the Pohlad’s and then to Headrick. Maybe Zygi Wilf is the best? Football is hard to compare though. The revenue is shared so much more equally. Craig Leipold? Glen Taylor?

I have colleagues that are fans of the A’s. They always complain about the owners. With each ownership change they move from the relief of getting rid of the last group to the realization that they are worse off now than they were before. 

I think there is a lot to appreciate about the Pohlad’s and their really long run of ownership of the Twins.

[chpettit19]

1 minute ago, Nashvilletwin said:

Royce Lewis today 

I really hope Royce puts the Twins in a position after this year that the Witt deal is the kind of thing we're looking at for a Royce extension. Would be fun to see those 2 (probably with Robert if he's still in Chicago) battle it out for best player in the central for the next decade (as Ramirez starts to decline).