The Royals are valued at $1.3 billion, according to the latest estimates by Forbes magazine, but that ranks them as the third-least valuable franchise according to their metrics. Only the Marlins and Rays rank below the Royals in valuation, with the Yankees topping the list at $8.2 billion.
Forbes estimates valuations overall are up 8 percent with the average team valued at $2.6 billion. This comes despite an uncertain TV landscape where the league will cut ties with ESPN and regional sports network provider Diamond Sports just emerged from bankruptcy. Forbes notes that despite the sale of the Orioles for $1.7 billion – five times revenues – MLB teams are not increasing in value as much as NFL or NBA franchises. The Minnesota Twins are currently for sale, with an asking price of $1.7 billion.
As far as the Royals, the valuation is a six percent increase over last year’s estimates and a 30 percent increase over the $1 billion John Sherman’s ownership group paid for the team in 2019. Forbes estimates the Royals made $324 million in revenues, but earned just $5.6 million in operating income. In 2023, the Royals had $52 million in operating income.
The team invested heavily in player payroll last year, spending over $100 million in free agents, and signing star shortstop Bobby Witt Jr. to a long-term deal that could pay him as much as $377 million. They improved by 30 games and made the playoffs last year for the first time in nine seasons, hosting two ALDS games.
But the team faces some long-term uncertainties regarding revenues. They re-upped on a short-term deal with Diamond Sports and their re-branded FanDuel Sports Network, but with a deal that will likely leave them with less revenue than they were expecting to receive. The team is also negotiating for a new ballpark despite a stadium proposal rejected by voters last April. The team is considering a potential site at Washington Square Park as well as locations in Kansas.
Despite the uncertainty, ownership has committed to a projected Opening Day payroll of $128.3 million, ranking 20th in baseball.