This is part II on a series of baseball economics, player salaries and payrolls. The first was the overview.
Congratulations on being hired as the new General Manager of the 2010 Kansas City Royals. The outgoing GM left quite a mess–a $70 million payroll, a 97-loss season and a number of unhappy fans–and now its your mess.*
*Of course, we mean no offense to Dayton Moore, the current GM of Royals, or the team’s owner, David Glass, but we’re looking to work with a team that’s in a bad way right now–Moore’s plan is for the long-term future and we respect that.
Fortunately, though, because you have a good track record with drafting, you are the new hope. The fans and media appreciated your hiring. The new owner has faith in you. He has given you complete autonomy and a decent budget. He promises to never meddle in your affairs (unlike certain team owners in, say, Houston or New York). It will be a long road to recovery and he understands this, promising you a four-year plan.
You have brought in a few people you trust as your advisors, head of scouting and development and other positions and you are satisfied with the scouts, some of whom you brought in and others whom you feel did a good job scouting for the team before you got there. You feel you have the right people in place for the right jobs. Now that we’re all set up, we’re going to jump right into payroll and finances.