Kansas City Royals Absolutely Have the Money to Sign Eric Hosmer

Much has been made about the potential departure of seven big free agents from the Kansas City Royals. The biggest name, Eric Hosmer, is sure to draw the biggest contract. Will that deal keep him in KC?

Many have doubted the Kansas City Royals can compete with big market teams like the Boston Red Sox and New York Yankees for Eric Hosmer. But I’m here to tell you that the Royals have the money—should they choose to spend it on the Wizard of Hoz.

Hosmer picked a fantastic year to have the best season of his career. The 27-year-old has slashed .317/.383/.493/.876 in 2017 and has played in every single game. He’s added 24 home runs and six stolen bases to his impressive statline. Hosmer has set himself up for a nice payday this offseason.

So nice in fact, pretty much everyone is speculating whether the Kansas City Royals will even have a chance to retain the uber-talented first baseman. I’m here to put that speculation to rest. The Royals ABSOLUTELY have the financial capacity to retain Eric Hosmer. The question will be, “Is it in the Royals’ best interest to sign Hosmer?”

Let me begin by explaining why I believe the Royals definitely have the money to sign Hosmer.

1.) 2018 Payroll Should be Much Lighter

Pete Grathoff of the Kansas City Star wrote a great article earlier this spring about how much money the Royals have invested into 2018 and beyond. The Kansas City Royals have about $98 million locked up in guaranteed contracts next season.

Kelvin Herrera, Nate Karns, Brian Flynn and Billy Burns will all be eligible for arbitration, as well. In a bit of a stroke of luck for KC, only Herrera played the entire season at the big league level in 2017. And he didn’t do much to help himself in the way of a big raise.

Herrera made $5.325 million this season. Let’s assume that goes up a tad in arbitration and call it $6 million in 2018. That bumps the total payroll to $104 million.

Karns only made $571,000 in 2017, and he was hurt for most of the season. Let’s call it $750,000 for him next season, bumping the 2018 payroll to $104.75 million.

IF Flynn makes the roster, he’s in a very similar spot as Karns heading into 2018. Let’s give him $750,000 as well. That’s $105.5 million.

Add on another $1.5 million for Burns and Paulo Orlando—IF they both make the team, and you’re looking at about $107 million for 2018. Give me $5 million in error, and you’re still only at $112 million for 2018.

Hosmer is going to get north of $100 million. My projection is that he gets about $18 million/year for however many years he wants. Regardless of the years, add $18 million to the 2018 payroll and you’re looking at about $130 million—more than $10 million cheaper than 2017.

2.) Influx of Disney Cash

Every MLB team is going to receive $50 million from Disney this offseason.

Disney upped its stake in BAMTech this year and made a $1.58 billion deal with MLB. In turn, all 30 teams will receive a $50 million spending bonus this offseason. Yes, that means the Red Sox and Yankees will also receive that money, but it benefits the Royals more than those two teams because of the luxury tax.

Even if general manager Dayton Moore chose to spend all of that money this offseason, Kansas City wouldn’t surpass the luxury tax. Boston and New York have been very vocal about their desire to stay under the luxury tax in order to preserve draft picks.

So this extra $50 million that KC will receive from the Disney deal should put them on a bit more level playing field in the Hosmer sweepstakes.

3.) Hosmer’s Value Higher in KC

Hosmer may actually be more valuable to the Kansas City Royals than any other team.

Teams are going to get into a bidding war this offseason for Hosmer—and rightfully so. Hosmer is 25th in the MLB in wRC+, 27th in wOBA and 35th in WAR. He’s a top-10 first baseman by almost every statistic that exists. His leadership skills and work in the community have also not gone unnoticed.

The thing is, Boston and New York don’t need to pay top-tier first baseman money to a second-tier first baseman. The Kansas City Royals do. Hosmer means more to KC than just his ability to hit and play first base. The Royals need a face of the franchise. In one of the smallest markets in baseball, Hosmer is a face the entire country knows.

The Royals need a face of the franchise. In one of the smallest markets in baseball, Hosmer is a face the entire country knows.

The Kansas City Royals need a star. With their TV deal coming up again in 2019, they need someone for fans to watch. The Royals need Hosmer to be their spokesperson, their All-Star, their ticket seller and their money-maker. New York and Boston can get that anywhere.

It actually makes more financial sense for the Kansas City Royals to pay up for Hosmer than it does for teams like the Yankees and Red Sox to pay up for him.

4.) Future Payroll Space Will Open Up

The $130 million over the next three years may sound like a lot for a rebuild, but it gets a lot better.

The Royals’ TV deal is up in 2019, and so is Alex Gordon‘s contract. Ian Kennedy will come off the books after 2020, as well. That’s a combined $36 million/year that will come off the books soon after Hosmer would theoretically sign his mega-deal—with an added revenue boost coming in from the new TV deal.

Drop that payroll down closer to $100 million—add in the revenue from a new TV deal—and the Kansas City Royals’ financial situation looks better in 2021 than it does right now, to be certain.