Cone, Grissom Traded : Baseball: Kansas City and Montreal continue to cut payroll. Toronto and Atlanta are beneficiaries.

The rich continued to get richer Thursday as the small-market Kansas City Royals traded Cy Young Award winner David Cone to the Toronto Blue Jays and the small-market Montreal Expos continued their payroll purge, trading Marquis Grissom to the Atlanta Braves.

The Expos, who had unloaded their No. 1 starting pitcher, Ken Hill, and top reliever, John Wetteland, in separate trades for minor league prospects on Wednesday, sent catalytic center fielder Grissom to the Braves for more established talent.

They received outfielders Roberto Kelly and Tony Tarasco and minor league pitcher Esteban Yan. In addition, the Braves will pick up a large portion of Kelly’s $3.4-million salary for 1995 as Montreal continues its attempt to lower its $18.7-million payroll of last year to $12 million or less.

The Royals traded Cone and his $5-million salary back to Toronto--where he spent the final two months of the 1992 season--for three prospects: highly regarded infielder Chris Stynes, shortstop Tony Medrano, one of the Blue Jays’ top draft picks from Long Beach Jordan in 1993, and relief pitcher David Sinnes.

“Our No. 1 goal is to keep baseball in Kansas City and keep it viable,” General Manager Herk Robinson said, insisting that the Royals lost $25 million in strike-related revenue last year. “When we say we’re doing what’s best for the Kansas City Royals, I mean that literally.”

The trade of Cone, who was 16-5 with a 2.94 earned-run average in 1994, followed by 24 hours a Kansas City deal that sent their top outfielder, center fielder Brian McRae, to the Chicago Cubs for two prospects.

The Royals are trying to lower their payroll from $40 million to $30 million. Since the death of owner Ewing Kauffman in 1993, the Royals have been operated by a board of directors headed by David Glass, expected to become the official owner when the industry negotiates a new economic system.

Sources say Glass was particularly displeased to let the players return before reaching a bargaining agreement that included a new revenue-sharing plan to help the small markets.

Said Bob Boone, the Royals’ first year manager: “Sometimes you have to bite some real tough bullets. You can’t hide the fact that taking a Cy Young winner out of your rotation is a blow to the quality of your rotation. I’m not going to cry in my beer and say poor me. What we’re looking at is the long-term health of this organization.”

Cone signed a three-year, $18-million contract with his hometown Royals as a free agent after helping pitch Toronto to a 1992 World Series victory after being acquired in a stretch trade with the New York Mets. Toronto Manager Cito Gaston said Cone would become the No. 1 starter in a rotation that includes Pat Hentgen, Juan Guzman and Al Leiter. The Blue Jays have lost two starters, Todd Stottlemyre and Dave Stewart, to free agency.

The Royals insisted that Cone’s role as a union activist had nothing to do with the trade.

“It’s a sad day, but I understand it from the Royals’ standpoint,” Cone said. “They’re doing what they have to do and I hope it works out. I’m still going to be a Royals fan, but if you can’t play in your hometown, then Toronto is a great place to be.”

Montreal General Manager Kevin Malone said the club lost $15 million last year and could not afford to let Hill, Grissom and Wetteland go to salary arbitration, even though their departures, along with that of free agent Larry Walker, who is expected to sign with the Colorado Rockies, damage a team that had the best record in baseball when the strike began on Aug. 12.

Kelly, who batted .293 with 43 runs batted in and 19 stolen bases last year, is expected to replace Grissom in center field, with Moises Alou moving to right to replace Walker and either Cliff Floyd or Rondell White replacing Alou in left. Mel Rojas, who had 16 saves last year, will replace Wetteland as the closer, and Malone said he wants to find a free agent bargain to replace Hill in the rotation, using the reported $2 million he received from the New York Yankees in the trade for Wetteland.

“I didn’t want to trade any players to Atlanta if given the choice,” Malone said of his strongest rival in the National League East.

“As I told John (Schuerholz, the Braves’ general manager), I think this will basically bring a world championship to the Braves at some point, but the quality of players we got in return was much better than anything else out there.

“A lot of general managers know what’s going on here and they’ve been supportive. A lot of them have called to say they think I’ve done a good job under the circumstances.”

Grissom batted .288 last year with 11 home runs and 36 stolen bases. He will be offered salary arbitration today--the tender date for arbitration-eligible players--but the Braves hope to sign him to a multiyear contract, Schuerholz said.

In other deals Thursday:

--The San Francisco Giants began to reconstruct their pitching staff by re-signing reliever Dave Burba and signing free agent pitcher Jose Bautista to a one-year deal for a base salary of about $725,000. Bautista was 14-8 in 116 appearances as a reliever and spot starter with the Chicago Cubs over the last two years.

--The Philadelphia Phillies signed free agent third baseman Charlie Hayes, who spent his first three major league seasons with the Phillies, to a one-year contract for $1 million, with another $500,000 in incentives. Hayes batted .280 with 10 homers and 50 RBIs for the Rockies last year. Philadelphia is moving third baseman Dave Hollins to first base, replacing John Kruk, who is a free agent.

--The Rockies re-signed outfielder Dante Bichette to a one-year contract. Bichette batted .304 with 27 homers and 95 RBIs last season.