The value of the Royals increased over 25 percent, according to estimates released this week by Forbes, putting their valuation at $1.64 billion. MLB teams overall enjoyed a 12 percent increase in valuations league-wide, the largest jump since 2017. The Royals moved up to #27 among 30 MLB teams in valuation, with only the Pittsburgh Pirates, Cincinnati Reds, and Miami Marlins ranked lower. The New York Yankees top the valuation list at $8.5 billion with the Los Angeles Dodgers narrowing the gap at $7.8 billion.
The valuation represents a 64 percent increase since John Sherman and his ownership group bought the team for $1 billion in 2019. Forbes estimates the Royals bring him $330 million in total revenues with $172 million in player expenses. They estimate the team has $25 million in operating income, a big increase from 2025 when they had $5.6 million in operating income, but a far cry from 2024 when they were estimated to have $52 million in operating income. Player expenses are down slightly from 2025 when they stood at $186 million, but Spotrac has their team payroll as 17th-highest in baseball.
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The Royals are seeking to add to their revenues with a new stadium, although Jackson County voters rejected a ballot measure to extend a sales tax to build a stadium in the Crossroads. The team looked at sites in North Kansas City and in Overland Park, but recently public officials in those jurisdictions have expressed a desire to move on. The team has also had talks with Kansas City officials about a potential site at Washington Square Park, although financing is a sticking point.
The increased valuation around baseball is a bit head-scratching considering the changing TV landscape and a looming labor battle. Several teams, including the Royals, ended their local TV deal with Diamond Sports to have MLB oversee television production, losing tens of millions of dollars in annual revenue with the change. The Collective Bargaining Agreement also expires at the end of the season, with several reports that owners are adamant about implementing a salary cap, a nonstarter for the union.
Despite those concerns, valuations continue to go up – the Tampa Bay Rays sold last fall for $1.7 billion, far above the $1.25 billion valuation from Forbes. Baseball has signed lucrative new TV deals with ESPN, NBC, and Netflix, and attendance has increased in each of the last three seasons. The sport is also coming off its most-watched World Series in over 30 years and its most-watched World Baseball Classic.
Forbes bases its estimates from team and league executives, sports bankers, media consultants and public documents, such as stadium lease agreements and filings related to public bonds.
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