The Kansas City Royals received a $1.015 billion value from Forbes in the site’s annual MLB evaluations, the fourth lowest ranking in all of baseball.
Forbes estimated the club brought in $245 million in revenue in 2017, to go along with an operating income loss of $17 million.
This is still an increase of 7 percent from the team’s 2017 value, where Kansas City had a 950-million-dollar evaluation. That was a 10 percent increase from 2016, placing Kansas City 24th overall in MLB value.
Only the Cincinnati Reds, Miami Marlins and Tampa Bay Rays placed lower on the 2018 list. The St. Louis Cardinals received a $1.6 billion value, seventh-most in major league baseball.
Some of the team’s estimated loss of $17 million can be attributed to the team’s exorbitant payroll. Kansas City paid out $145.9 million in 2017, the 14th highest payroll in baseball, despite ranking 26th in revenue.
Kansas City is one of the smallest markets in baseball and cannot consistently extend its payroll into the mid-teens without expecting a loss of some kind, barring a deep playoff run. The team has regressed its payroll in 2018, now ranking somewhere in the high 20s.
The Royals should expect a significant revenue increase in the near future, as the team’s undervalued TV contract expires after the 2019 regular season. New TV deals have been one of the biggest sources of revenue growth for other MLB teams, and given the over performance of Kansas City’s 2008-2019 deal, the club figures to see an income jump.
The average MLB team is currently worth $1.645 billion, a 7 percent increase from values in 2016, with the average team bringing in $315 million in revenue.
The Royals fall well short of the league averages, while the Yankees have well exceeded the medium. New York has received the top evaluation for 21 straight years, with a 2018 value of $4 billion, after raking in $619 million in revenue last season.
Revenue in all of baseball was up 4.7 percent across the board.
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