2012 Kansas City Royals Repository Thread

[alnorth]

2012 Slogan: Our Time

A better, more accurate 2012 Slogan: It is Finally Next Year
(from Great Expectations)

An alternative slogan if you don't like that one: Someone has to win this crappy division
(from alnorth)

With the beginning of a new year, it is time for the 2012 version of the Royals Repository Thread. We've got Hosmer, we've got a 2011-dominating Gordon, we've got Moose, we've got hopefully a killer bullpen, we've got a stereotypical slow slugging DH, we've got easily one of the best defensive shortstops in the AL, we've got a promising catcher in Salvador Perez. Hell, we've got offense and promising prospects galore.

We do not have starting pitching.

Oh yeah, we've also got this:



Get ready for, (as of January 2012 anyway), one of the most confusing puzzles of a baseball season in recent Royals history. Will they suck? Maybe, I don't know. Will we be given a year of 0.500 baseball? Possibly, I don't know. Will they win the division and go to the playoffs for the first time in 27 years? For the first time in a long time, it could happen, I don't know. 92 losses, 92 wins, or anything in between would not surprise a lot of us.

Everything goes here except Gameday threads and really big news. If a giant story breaks, the Royals achieve some awesome milestone, or we sign/lose a highly significant player/coach/mascot/whatever, then it might also deserve its own thread. This being Chiefs Planet, please do not clutter the board with new threads about trivial Royals news or you will only annoy those who come here for just Chiefs football. If you aren't sure and its not a Gameday thread, it goes here.

What sort of stuff often goes here? SPchief explained it well, so I'll just copy that:

If you locate something of interest.. ANYTHING.. deals on apparel, best ways in/out of the stadium, giveaways, great stories from this season or from seasons gone by, rumors, trades, anything.... feel free to post it here.

[Fansy the Famous Bard]

Originally Posted by DeezNutz

Completely disagree. Wins mean everything.

It means a lot, but the royals have not been winning jack squat for how long now? And they still make profit year in and year out. Now they are looking at a bunch of extremely exciting players having come up and continuing to come up that the city is embracing. They can stink it up for the next 2 years and will still make bank. It's not that hard to see.... Of course winning\losing means everything, You completely missed the meaning behind what I said.

[Fansy the Famous Bard]

Originally Posted by sedated

None of those guys are even close.

Maybe its cause I don't watch games where sanchez pitches... So my level of hate hasn't elevated to that stature as of yet.

[Fansy the Famous Bard]

Originally Posted by duncan_idaho

They're not going to win if they don't make some serious moves to improve the pitching staff in the offseason, or unless Brian Sabean-level luck hits KC's team.

And if they don't start winning, a lot of the positive momentum is going to wither (and they'll stay right where they are in attendance and revenue).

If Glass approves Moore to go sign a few guys in the offseason, that's one thing. He CAN and SHOULD do that. It's in his interests to do it.

Whether he will? Time will tell. I'll say this, though. If Glass approves spending $25 million on FA pitchers in the offseason, I will have to give him credit. He's spending on all the other levels of the org. That's the missing piece.

But they've got more exciting prospects on the way!! eat that up KC!! spend more money!

[DeezNutz]

Originally Posted by Zeke

It means a lot, but the royals have not been winning jack squat for how long now? And they still make profit year in and year out. Now they are looking at a bunch of extremely exciting players having come up and continuing to come up that the city is embracing. They can stink it up for the next 2 years and will still make bank. It's not that hard to see.... Of course winning\losing means everything, You completely missed the meaning behind what I said.

I understood your meaning. But the shine will quickly wear off these young players if there isn't results on the field, and this shine will fade very quickly.

The fact that the Royals have and will continue to be financially successful is tied to the larger state of baseball; it this way, the team is in great shape.

[Fansy the Famous Bard]

So again, i'll go back to... No, David Glass has no reason to sell. He and his family are making bank, and will continue to do so.... despite their ineptitude as an organization from top to bottom.

We're really just scrizewed.

[Deberg_1990]

Originally Posted by Zeke

So again, i'll go back to... No, David Glass has no reason to sell. He and his family are making bank, and will continue to do so.... despite their ineptitude as an organization from top to bottom.

We're really just scrizewed.

Who paid for the stadium renovations? The tax payers?

Hes got me be making bank with all the new revenue streams out there now.

[duncan_idaho]

Originally Posted by Zeke

So again, i'll go back to... No, David Glass has no reason to sell. He and his family are making bank, and will continue to do so.... despite their ineptitude as an organization from top to bottom.

We're really just scrizewed.

The amount of money they make yearly, short-term is somewhat uncertain. But the profits likely are somewhere around what I mentioned earlier - $10-15 million.

On the low end of that scale, they generate the revenue that could earned by selling the team ($400 million) in 40 years. High end, in 25.

Several hundred million in cash, now, is better than the same amount spread out over decades. Heck, you could make the argument that $400 million now is better than $1 billion over 20 years.

There certainly is a short-term incentive for Glass and co. to sell the Royals.

[Bowser]

Say Glass were to sell the team today for say, 450 mil. What would his take home be on a 450 million dollar check? Now compare that to what he would make the next twenty years, assuming his profits are 15 mil/year, and will continue to be that over the time span.

Would it be fiscally worth it to sell the team now, or take the profits stretched over 20 years?

[Fansy the Famous Bard]

Right now, The Glass family has how many people "employed" by the team making a hefty salary? They are also turning profit year in and year out... As well the team has grown by $250+ mil in value within the decade.

The thing is still growing... and producing... you don't sell that off unless you just flat want out of the business.... They basically ARE out of the business by being absentee owners.. just watching the money come in... so they have no stress from it.

http://www.forbes.com/lists/2011/33/...ls_339113.html

Only $10-15 mil profit a year? I don't believe that for an instant... is that after their $40+ mil payout to themselves?

[Fansy the Famous Bard]

Originally Posted by Bowser

Say Glass were to sell the team today for say, 450 mil. What would his take home be on a 450 million dollar check? Now compare that to what he would make the next twenty years, assuming his profits are 15 mil/year, and will continue to be that over the time span.

Would it be fiscally worth it to sell the team now, or take the profits stretched over 20 years?

And then potentially sell it at the end of the 20 years for exponentially more.

[stonedstooge]

Originally Posted by Zeke

Right now, The Glass family has how many people "employed" by the team making a hefty salary? They are also turning profit year in and year out... As well the team has grown by $250+ mil in value within the decade.

The thing is still growing... and producing... you don't sell that off unless you just flat want out of the business.... They basically ARE out of the business by being absentee owners.. just watching the money come in... so they have no stress from it.

http://www.forbes.com/lists/2011/33/...ls_339113.html

Only $10-15 mil profit a year? I don't believe that for an instant... is that after their $40+ mil payout to themselves?

Clark says this is mere pennies compared to what I bilk from the Kansas City area

[Bowser]

Originally Posted by Bowser

Say Glass were to sell the team today for say, 450 mil. What would his take home be on a 450 million dollar check? Now compare that to what he would make the next twenty years, assuming his profits are 15 mil/year, and will continue to be that over the time span.

Would it be fiscally worth it to sell the team now, or take the profits stretched over 20 years?

I know he won't make as much over the time as he would just selling it, but he wouldn't pay nearly as much tax, either.

Originally Posted by Zeke

And then potentially sell it at the end of the 20 years for exponentially more.

And there's always this, unless of course he just drives the franchise off a cliff and they're not worth dick in 20 years.

[Deberg_1990]

Originally Posted by Zeke

Right now, The Glass family has how many people "employed" by the team making a hefty salary? They are also turning profit year in and year out... As well the team has grown by $250+ mil in value within the decade.

The thing is still growing... and producing... you don't sell that off unless you just flat want out of the business.... They basically ARE out of the business by being absentee owners.. just watching the money come in... so they have no stress from it.

http://www.forbes.com/lists/2011/33/...ls_339113.html

Only $10-15 mil profit a year? I don't believe that for an instant... is that after their $40+ mil payout to themselves?

HOw have they increased in value you so much while the product has remained so poor??

[Kyle DeLexus]

Originally Posted by duncan_idaho

Let's take a look at that. We have no concrete data on how much of a profit the Royals have been turning, but the estimates I've seen most commonly are $10-15 million a year.

The team value is currently in the $400 million range. He paid $96 million for it originally.

Now that the "Can't profit from selling the team" clause has expired, the only thing holding him back is future returns.

It is possible the Royals continue to grow in value. it's also possible that Moore fails, attendance bottoms out, and the Royals value drops.

If he sells now and gets market value, that's a $300 million profit, on the purchase price. He'd have to run the team for 20 years at the current rate of profit to make that kind of money, and there's no guarantee there.

Financially, getting a huge lump sum like that NOW is more valuable than getting 1/20th of it a year over a long period of time. Smart and cautious investing will take the lump sum and increase it drastically over time.

While that is true, he might be looking at it as making 10-20% interest (or more when the ML Payroll was $36 million in 2011) on his initial investment with a nice profitable payday down the road. If I wasn't in it for the long haul, I'd be willing to gamble on that vs. the lump sum and sell off right after the Local TV deal expires so that you can try and get the new deal as part of the sales price.

Of course for that to work, he'd need the team to be somewhat competitive for the next 7-8 years or however long that deal is.

Then again I'm not positive that would work.

[gblowfish]

A couple of thoughts: David Glass won't be around much longer. He'll be 80 in 2015. His dipshit son, on the other hand, is the key to the situation. If he wants to go off an buy his own third world nation, they could sell the Royals to the highest bidder. Which, of course, means the team could one day theoretically move to Montreal, or New Orleans, or Mexico City, or Havana (After Castro Croaks off) or where ever. KC has had three pro franchises leave for greener pastures (KC Athletics, KC Kings, KC Scouts) so it's not too far fetched to think they'd leave. If the Glass Family wants to keep this thing on cruise control, they can just milk and bilk the city, they have the Chiefs as the perfect example on how to do that. Just keep it in the black, baby....