KANSAS CITY, Mo. -- The Royals had their highest payroll in 2002 and their worst win-loss record, so Kansas City owner David Glass intends to make changes.

Glass said the payroll will be trimmed by about $10 million to $37 million for 2003. He said the figure includes money to re-sign the Royals' pitcher of the year, Paul Byrd, who is a free agent after going 17-11 with a 3.90 ERA.

Kansas City had a franchise worst 62-100 record last season, and Glass said he lost about $20 million.

"The amount of the payroll doesn't necessarily dictate how you are going to play,'' Glass told the Kansas City Star. "We had the highest payroll in the history of the Royals last year and we lost 100 games. So, obviously, we need to do something different.''

A $37 million payroll would have been 29th among the 30 teams this year, ahead of only Tampa Bay.

There are several high-priced veterans the Royals have been expected not to re-sign, including shortstop Neifi Perez, who was paid $4.1 million last year.

Byrd has indicated he would like to stay in Kansas City, and the Royals would like to keep him.

"We have factored him into our projected payroll,'' general manager Allard Baird told the paper. "I feel we have a legitimate chance to sign him, because we want him here and he wants to be here.''

Nearly half the $37 million goes to first baseman Mike Sweeney and center fielder Carlos Beltran. Sweeney, who signed a five-year contract extension last spring, has an $11 million salary next year.

Beltran, who made $3.5 million last season, is eligible for salary arbitration and probably will get about $6 million.

Other expensive players under contract include third baseman Joe Randa at $4.5 million, catcher Brent Mayne and outfielder Michael Tucker, $2.75 million, and reliever Jason Grimsley, $2 million.

Also eligible for arbitration is first baseman/outfielder Raul Ibanez, who made $800,000 last year while having a breakthrough season with career-highs in 24 homers, 103 RBIs and a .294 average.

"We know exactly where we are,'' Baird said. "We expect to improve next year. To do that means moving salaries, maybe make some trades.''