According to Heyman, Kennedy will make $70 million over five years. This equates to a $14 million annual average value.
The AAV on Kennedy's new contract falls right behind John Lackey and Scott Kazmir, who made $16 million per season, and right above J.A. Happ, who made $12 million per season.
On total guarantee, Kennedy is eighth-richest starter who signed a new contract this offseason.
For the Royals, Kennedy adds to an already expensive offseason for a team that is considered to be in one of the smallest markets in the Major Leagues. Prior to this deal, the Royals set their franchise record for largest contract earlier this offseason with the re-signing of Alex Gordon to a four-year, $72 million deal.
The signing of Kennedy is an interesting one for the Royals. He has had success in the past, but just has not been consistent over his nine-year career. The Royals are good with "broken" pitchers and may see how to reconstruct Kennedy into the starter that finished fourth in the NL Cy Young voting in 2011.
To date, the Royals' rotation is made up by the likes of Edinson Volquez, Yordano Ventura, Ian Kennedy, Danny Duffy, and Chris Young. Johnny Cueto, who spent the second half of the 2015 season in Kansas City, left for San Francisco via free agency.
In 2015, the 31-year-old pitched for the Padres. He went 9-15 with a 4.28 ERA and a 174 to 52 strikeout-to-walk ratio in 168 1/3 innings pitched. FanGraphs says he was worth 0.8 Wins Above Replacement.
Over his career, Kennedy has a 3.98 ERA and a 1,140 to 412 strikeout-to-walk ratio in 1,234 2/3 innings pitched. He has spent time with the Yankees, Diamondbacks, and Padres.
The Padres offered Kennedy a qualifying offer at the beginning of the offseason, so the Royals will have to forfeit their 2016 first round pick because of the signing.