The Kansas City Royals have long been known for operating on the leaner side of the payroll spectrum. But heading into 2026, things are starting to look a little different-and a little more expensive.
With arbitration kicking in for a number of key contributors, Kansas City is now seeing the cost of developing a young core. Those pre-arb bargains are fading fast, and the raises are stacking up. Add in a couple of veteran additions-like outfielder Lane Thomas and left-handed reliever Matt Strahm-and suddenly, the Royals are writing bigger checks than we’re used to seeing from this front office.
None of these individual deals are earth-shattering. Strahm’s $7.5 million salary, for instance, isn’t going to break the bank on its own.
But when you’re a club that’s historically been careful with every dollar, these mid-tier contracts start to matter. And now, there’s a growing sense that the Royals may need to subtract before they can add again.
According to reporting from The Athletic, Kansas City might need to shed payroll if they want to bring in another bat-a move that many fans are still hoping for. One name that keeps popping up is Jarren Duran, a dynamic outfielder who could help round out the lineup. But with finances tightening, the Royals may have to get creative to make it happen.
It’s not that the Royals are completely handcuffed. Ownership did green-light the trade for Strahm, even though the team had been signaling limited financial flexibility to other clubs and agents. That move became more urgent after Kansas City shipped lefty Angel Zerpa to the Brewers in exchange for outfielder Isaac Collins and righty reliever Nick Mears.
Still, if another addition is going to happen, it might require trimming somewhere else first.
Cot’s Contracts projects the Royals’ year-end competitive balance tax payroll at just over $182.8 million-slightly above last year’s $180.9 million figure. Their Opening Day 26-man payroll is also expected to rise, from $126 million in 2025 to roughly $138.8 million in 2026.
That’s progress, especially for a team that’s rarely been in the upper half of MLB spending. But it also means the margin for financial maneuvering is getting slimmer.
The Royals could always stand pat, declare the offseason a success, and roll into spring training with what they’ve got. But that wouldn’t quiet the buzz from a fanbase that’s still waiting for a true statement move-something that signals this team isn’t just trying to be competitive, but aiming to win the AL Central outright.
They’ve already outspent their division rivals this winter. Now it’s about taking the next step.
If Kansas City does decide to move money around, there are a few trade chips on the pitching staff that could help free up space. Lefty starter Kris Bubic is projected to earn $6 million in arbitration, while relievers John Schreiber and Bailey Falter are each expected to command over $3 million. Those aren’t insignificant figures for a club looking to stretch every dollar.
Then there’s the curious case of Jonathan India. The Royals signed the infielder to an $8 million deal despite a tough 2025 campaign. If payroll flexibility is really at a premium, India could be a candidate to move-especially if another club believes in a bounce-back season.
Of course, it’s always possible that this talk of financial constraints is more about leverage than limitations. The Royals have a reputation for operating conservatively, but under owner and CEO John Sherman, there’s been a clear uptick in spending. He’s shown a willingness to invest when the moment calls for it-and if the right opportunity comes along, there’s reason to believe he’d open the checkbook again.
In a league where seven teams are projected to spend north of $200 million, the Royals are still playing catch-up. But they’ve already laid the groundwork this offseason. Now it’s about finishing strong-finding that last piece or two to solidify the roster and make a real push toward October baseball.