Not in Missouri anymore: Royals move legal home to Delaware

FILE - In this April 6, 2015, file photo, security wands fans before an opening day baseball game between the Chicago White Sox and Kansas City Royals at Kauffman Stadium in Kansas City, Mo. As teams prepare to welcome back fans, there are serious legal and ethical questions that must be answered. (AP Photo/Orlin Wagner, File)

KANSAS CITY, Mo. (AP) -- 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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