A Brief 2013 Payroll Update
2012 has come to a close. Â I’m sure that our readership has begun the annual slog towards April 15, closing out their fiscal year by filing a 1040. Â The Royals have also wrapped up their fiscal year, and are looking ahead to what should be a profitable 2013. Â The team has added to their labor cost, but should see an uptick in both local and league wide revenues.
Here is an accounting of the Royals payroll expenditures for 2013. Â The table below includes all major league contracts and some projections for who will and will not make the roster.
|Payments to Players|
|Hochevar 1/6 of Arb projection||s-rhp||$733,333|
|Santana $ from Angels||-$1,000,000|
Obviously, we are making assumptions. Â Here they are laid out in bullet form going down the roster:
- All non-arbitration eligible players are entered in at or around $500,000. Â The league minimum for 2013 is $490,000 for major league contracts. Â Some players may see a larger raise [Moustakas, Mike] while others may see a raise more in line with their contributions in 2012 [Dyson, Jarrod]. Â The Royals policy from past years has been very small raises above previous salary in the $15,000 to $50,000 range. Â Don’t expect the final total to jump too significantly [Somewhere around $250,000 to $500,000].
- We have no reason to believe that Miguel Tejada is lying when he says the Royals are waiting to clear space on the 40 manÂ to make his contract guaranteed. Â Tejada’s major league salary is included as the utility infielder. Â You can begin the wailing, gnashing of teeth, and tearing of garments for Irving Falu as time permits.
- Dyson as the 4th Outfielder seems a foregone conclusion, but Lough should make around the same amount to perform a similar function minus the HAVOC! speed. Â Picking between the two seems mind-numbing.
- I have gone with Giavotella as the 25th man. Â Your pick can be made as you see fit. Â That player will likely earn around $500,000 which does not effect our total salary calculation.
- Bueno or Joseph or LHRPTBNL will be the LOOGY and will make somewhere near the league minimum. Â Of course, if Dayton Moore can find the money to sign Miguel Tejada, maybe David Glass can fork over another few million for Darren Oliver’s contract or something.
- Aaron Crow’s pay is a mystery to all. Â He could either get a 15% pay cut, a tender at the league minimum, or a raise of some sort. Â If you’d like to sort through the collective bargaining agreement to determine his salary, the table of contents is 13 pages long. Â Enjoy.
- In a similar fashion, the long reliever and 5th starter could be anyone from a long and winding list of names. Â Chen, Smith, Teaford, Adcock, Moscoso, or Mendoza. Â I went with Chen as the 5th starter and Mendoza as the long reliever. Â If you really want to torture yourself, add Luke Hochevar onto that list.
- Speaking of Luke, his total involves taking his projected arbitration salary and multiplying it by 1/6 as that is the minimum the Royals are committed to paying him for 2013. Â It is unclear what happens if the Royals sign him to a major league deal to avoid arbitration [namely, is that deal guaranteed or do the 1/6 and 1/4 rules still apply in that scenario].
- The Royals will pay Bruce Chen $4,500,000 in 2013, regardless of how well he pitches. Â Unless someone claims him on waivers. Â That scenario is incredibly unlikely.
- You’ll note that Joakim Soria’s buyout is not included. Â Cot’s contracts has stopped including previous year buyout figures while still including deferred money. Â Bob Dutton has noted that some sort of accounting shenanigans allow the Royals to include buyouts on the previous years payroll. Â Further confirmation is the note that the Metropolitans are including Johann Santana’s buyout as part of their 2013 payroll.
Two additional notes should also be made that are only tangentially related to the topic at hand. Â The Royals likely consider the entire 40 man roster expenditure as their major league payroll. Â Why? Â The 40 man roster expenditures are what is included to determine the luxury tax threshold, giving team’s a standard for what should and should not be considered. Â Also note that the 40 man expenditures include the AAV of each deal in the luxury tax calculation, which doesn’t apply to the Royals.
Our second note is far simpler: How does the Royals’ $77,000,000 payroll stack up to all other teams current expected expenditures? Â The calculations that follow include both the MLBTR arbitration estimates and known contracts. Â In Major League Baseball, the Royals currently rank 20th out of the 30 teams. Â In the American League, they sit at 10th out of 15. Â In the AL Central, they sit at 4th out of 5, with Minnesota just above the Royals at about $79 million and Cleveland sitting slightly below the Royals at $70 million.
If you’d like to further bask in the warming glow of projected salaries and how long the team has a player under control you can look here. Â The entire 40 man roster + Miguel Tejada is included.
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