Citing cost, Hy-Vee ends sponsorship deal with Royals

The Kansas City Royals’ recent success allows the team to command more lucrative sponsorship agreements. Hy-Vee has decided the price is too high.

The Iowa-based chain of grocery stores announced Wednesday that it was unable to reach a new contract with the Royals. In a news release, Hy-Vee said it would be fiscally irresponsible to meet the club’s terms. Hy-Vee had been the “exclusive grocery sponsor” of the Royals since 2001.

“While we are disappointed to end our long-standing relationship, we couldn’t justify spending the amount that was being asked without it impacting our customers in the long run,” Donna Tweeten, a Hy-Vee executive vice president, said.

It makes sense that the Royals asked Hy-Vee to pay a steep price to extend the partnership. Player salaries have risen to the point that it’s credible for the Glass family to claim the team loses money. The 2017 payroll is expected to climb above $140 million. Meanwhile, the club is trapped in a local television contract that pays only $20 million annually.

“We are parting ways with Hy-Vee, but we are grateful for their partnership and appreciate all of their support over the years,” Toby Cook, the Royals vice president for publicity, said in a statement. “The club will issue further announcements about 2017 corporate partnerships at a later date.”

Ending the contract means that Hy-Vee stores will no longer sell Royals tickets. Less expensive seats at Kauffman Stadium were known as “Hy-Vee level.”

Hy-Vee was not shy about promoting its partnership with the Royals. Earlier this year, someone scaled a Hy-Vee billboard at Interstate 435 and Truman Road and removed a 14-foot-tall figure meant to suggest an Royals outfielder leaping at the wall to make a catch. (The figure was recovered, ball in glove.)

In the news release, Hy-Vee said it would “move forward by sponsoring and supporting other sports and entertainment options in the Kansas City area.”

Hy-Vee became the official grocery sponsor of the Chiefs in 2009, replacing Price Chopper.