Royals Rumors: Insider's report hints KC payroll squeeze could stall another big bat

The Kansas City Royals haven’t had an above-average team payroll in decades, but the 2026 financial commitments are starting to stack up.

Arbitration is starting to hit for many of Kansas City’s regulars, and with that come raises from their pre-arbitration salaries. Add in veteran acquisitions like outfielder Lane Thomas and reliever Matt Strahm, and Kansas City is not pinching pennies this winter.

While these seven-figure deals are not massive on their own, they add up over time, and Kansas City is hardly a bastion of large-payroll thinking. Unfortunately, that reality is starting to take hold and affect the remainder of this offseason.

Following Kansas City trading for Strahm and his $7.5 million salary, The Athletic’s Ken Rosenthal reported that “shedding payroll still might be necessary for the Royals to acquire one more hitter.”

That is hardly ideal news for Royals fans, who are holding out hope for another impactful corner outfielder, especially as Rosenthal again named the oft-mentioned outfielder Jarren Duran.

"The Royals had been telling clubs and agents they were operating with limited financial flexibility. But ownership allowed the front office to extend for Strahm, who became a more pressing addition after the Royals traded lefty reliever Angel Zerpa to the Milwaukee Brewers for outfielder Isaac Collins and righty reliever Nick Mears."

Ken Rosenthal, The Athletic

If the Royals want more offseason moves, they may need to clear out some standing obligations first.

Cot’s Contracts projects Kansas City’s 40-man year-end competitive balance tax payroll at more than $182.8 million, marginally higher than the $180.9 million mark the Royals ended 2025 with. Cot’s also projects the Royals’ Opening Day 26-man payroll at $138.8 million, up from their $126 million mark on Opening Day 2025.

Kansas City could certainly pack the offseason in, call their acquisitions good enough, and hope for the best. But fans are still waiting for that splash, the move to capitalize on what trade capital they do have and push this team from a hopeful winning record to being a divisional favorite. The Royals have invested the most among the AL Central clubs, but there is still more work to do ahead of Opening Day.

Rosenthal listed some trade candidates if Kansas City wishes to shed payroll, especially on the pitching side. Starter Kris Bubic is projected to make $6 million in arbitration, while reliever John Schreiber and tweener Bailey Falter are both projected to earn more than $3 million each.

If the purse strings are so tight, it is curious why Kansas City would sign infielder Jonathan India to an $8 million contract after he struggled in 2025, but perhaps they could find a trade partner for India as well.

This could always be lip service, a negotiating tactic from the Royals. This frugality certainly follows the club’s reputation, but owner and CEO John Sherman has been investing more and more in the payroll, and he obviously can extend more money if the opportunity is right.

Hopefully, in a world where seven teams have projected payrolls north of $200 million, the Royals can find some more wiggle room to make the moves they need to be a true division contender and get back into October.