Kansas City Royals Show That Small Market MLB Teams Have Money To Spend
The Kansas City Royals shocked the baseball world this week by signing star infielder Bobby Witt Jr. to a lengthy extension.
Witt's contract spans at least 11 years, with a $288.8 million guarantee that could reach up to $377 million if the Royals exercise their three-year, $89 million club option after the 2034 season. While this kind of money wouldn't be shocking coming from the Yankees, Dodgers or San Francisco Giants, for the small market Royals, it was a stunning financial commitment. And Witt is unquestionably worth the money.
His 2023 season was outstanding, with 5.7 WAR on the back of a .276/.319/.495 batting line with 30 home runs and 49 stolen bases. And he won't even turn 24 until halfway through the 2024 season. Considering his elite defensive skills at a premium position also add value, that's exactly the kind of player MLB teams want to invest in. Even the lower-revenue organizations like the Royals.
So why don't they?
That's exactly the question Milwaukee Brewers fans must be asking themselves right now. And why Baltimore Orioles fans are so excited for new management.
Chicago - Milwaukee Brewers starting pitcher Corbin Burnes pitches against the Chicago Cubs on Aug. 29, 2023. Kamil Krzaczynski-USA TODAY Sports
Royals Show, Once Again, That Being Small Market Is A Choice
While the Royals will pay Witt just $2.7 million this upcoming season, the average annual value of the deal pushed their luxury tax payroll to $161 million. $115 million of that in estimated salaries. That's a sizable investment for a team playing in one of the league's smallest markets, with an aging stadium that team ownership is desperate to replace.
READ: Kansas City Chiefs And Royals Set To Look To New Cities For Stadiums
Meanwhile, the Milwaukee Brewers, who've already secured funding for improvements to their stadium, just traded perhaps their most important player for 50 cents on the dollar because he was set to make nearly $16 million in 2024 and will command a massive salary in free agency.
And in a sign of how new ownership can impact spending habits, Burnes went to the Baltimore Orioles, another organization that until very recently was known more for focusing on concerts instead of improving its roster. So the Orioles and Royals, both small-market teams, were willing to make big financial investments to secure a better chance of winning, while the Brewers threw in the towel and are reportedly open for further business.
How is this a sustainable model for fans?
Why Watch When Ownership Doesn't Care?
The baseball season is an extremely intensive commitment for fans. Three-hour games, spread out over 162 nights in just six months. Watching, following along on apps, reading updates…it's a grind. And it's why owners like the late Peter Seidler in San Diego realized that investments in star players were so valuable.
After years of mediocrity, the Padres became must-see TV in 2022 and 2023 thanks to significant financial investments. Despite the on-field results, fans showed up in droves, pushing the Padres to the top of MLB's attendance rankings. The Orioles, where previous ownership told fans not to get used to their exciting crop of young stars, now look poised to seize the momentum from a 100-win 2023 by adding a superstar starter. A Witt-style extension for Gunnar Henderson or even Jackson Holliday would create even more excitement. Even with just the Burnes trade, it'd be shocking if the Orioles don't see a large bump in attendance for 2024.
But for Brewers fans, what's the point? Ownership let its popular manager walk for more money, then effectively told fans the plan is to cut costs at the expense of on-field performance. Why watch when the team is run as an investment vehicle more so than a baseball product? Especially when even the Royals are extending young stars and signing capable veterans like Michael Wacha and Seth Lugo.
Small market teams clearly do have money to spend. They're just choosing not to. Which is why the Witt extension is such a good sign for the sport and for fans hoping their favorite team actually keeps their favorite players.