Ken Kendrick Reflects on D-backs' Strong Spending in the Offseason

With more robust revenue sources thanks to their deep postseason run, the team pushed their 2024 payroll to record numbers.

Oct 24, 2023; Philadelphia, Pennsylvania, USA; Arizona Diamondbacks owner Ken Kendrick holds the Warren C. Giles Trophy in celebration of a National League Championship at Citizen's Bank Park. / Eric Hartline-USA TODAY Sports

Following the Jordan Montgomery introductory press conference, Diamondbacks Managing General Partner Ken Kendrick spoke to the media. The key topics discussed were capitalizing on an opportunity to sign the free agent left-hander at the end of spring and increased attendance in 2024. Ownership committed to spend in the offseason, with just under $175 million spent in contracts and adding over $70 million to their 2024 payroll. The team has a projected payroll of $175 million, more than $40 million higher than the previous franchise record of $131 million in 2018.

"You have to determine as a businessman what is your revenue going to be, and then you can define what your expenses can be," said Kendrick. "And our revenues became more robust, and as I've tried to say over the years, as the revenues are there, we're going to invest in the team. Thankfully, we're able to do that in this case."

The D-backs latest investment was signing Montgomery to a one-year, $25 million deal plus a vesting option for 2025. With the left-hander unsigned entering the end of Spring Training, Kendrick and general manager Mike Hazen saw an opportunity to improve their starting rotation. Like Eduardo Rodriguez, Montgomery was amongst their list of starting pitcher targets. The team was cautious about striking a long-term deal, as Montgomery was reportedly seeking a seven-year deal in free agency. Once the left-hander started looking for a short-term deal to pitch for a contender, the D-backs swooped in and landed him.

Coming off a World Series run and their heavy spending in the offseason, the team hopes their paid attendance will spike to 2.5 million for the 2024 season based off early trends and enthusiasm from the fan base. That would be a 500K increase compared to last season's 1.96 million figure, a number that would be "pretty significant" for Kendrick. It would improve the revenue stream from the regular season, and if coupled with another playoff run could help sustain their current level of spending.

"If we put 2.5 million people in the stands this year because our team is worthy of them coming to watch, that revenue will be a much greater number than we had going into the offseason."

The team has an opportunity to keep building on the momentum generated from last year's playoff run. From their actions in the offseason, both ownership and the front office sent a message to the players that they believe in them. Kendrick is hoping they're further energized and last year was the beginning of a run rather than a one-year wonder. So far in 2024, the players have responded well with two straight blowout wins over the Rockies.

Should they find themselves in a strong position to compete for a postseason spot, they still have some flexibility to add at the deadline. Kendrick praised his GM's ability to analyze the setting leading up to the deadline. Hazen's notable deadline acquisitions include J.D. Martinez, Paul Sewald, and Zac Gallen.

"We're prepared to do that again, if we're at a place where an extra player or two could make a difference, depending on what the competitive landscape is. I hope we'll have that problem."

In regards to flexibility at the deadline, the D-backs have an estimated luxury tax payroll of $215.9 million million according to Roster Resource. That calculation comes from the average yearly value of a contract instead of the actual salary paid for that season. The Competitive Balance Tax threshold for the 2024 season is set at $237 million. It's highly unlikely they would be willing to exceed the luxury tax threshold and absorb penalties.