SAN FRANCISCO – The Kansas City Royals have moved -- not actually, but legally.
The Royals changed their legal home from Missouri to Delaware last fall during the process of the team’s sale from David Glass to a group headed by John Sherman. The switch was mentioned Monday in a filing with the 9th Circuit U.S. Court of Appeals by Major League Baseball’s law firm in its defense of a lawsuit by minor leaguers claiming they are not being paid minimum wage.
Kansas City Royals Baseball Corp., a Missouri corporation, had been a defendant in the suit, which was filed in 2014. That company filed a certificate of conversion with the Missouri secretary of state on Nov. 19 to convert to Kansas City Royals Baseball Club Inc., a Delaware corporation. Then the newly named corporation converted to Kansas City Royals Baseball Club LLC, a Delaware limited liability company.
Sherman’s group acquired 100% of Kansas City Royals Baseball Club LLC on Nov. 25, a deal thought to be valued at $1 billion. The LLC becomes a defendant in the suit.
An unopposed motion to substitute parties was filed by Proskauer Rose.
Many entities maintain a legal base in Delaware. The Royals have a Class A minor league team in Wilmington
“Corporate laws are much more universal in Delaware,” Royals spokesman Mike Swanson said.
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