This past offseason was not one to remember for the Cubs, a big-market, high-payroll team that spent a mere $3.5MM on free agents after failing to make the playoffs in 2019. The club also lost quite a few of its own notable free agents, including reliever Pedro Strop, even though the right-hander revealed Wednesday that Chicago had interest in retaining him.
“They did try hard to bring me back. It’s just money-wise, they couldn’t, because they weren’t allowed [with] all the salary cap stuff; they wanted to try to stay below,” Strop said (via Gordon Wittenmyer of the Chicago Sun-Times).
The 34-year-old Strop, a Cub from 2013-19, ended up with the National League Central rival Reds on a modest single-season pact worth $1.825MM. The Cubs weren’t even willing to go to those lengths for Strop, however, thanks in part to their desire to stay under the luxury tax (not the nonexistent salary cap) this year. They were one of three teams that had to pay the tax in 2019, when they were forced to fork over a $7.6MM bill. The threshold then was $206MM, but it has climbed to $208MM for 2020. Although they spent next to nothing over the winter, the Cubs project to start this season about $6MM over that mark, per Jason Martinez of Roster Resource and FanGraphs.
Should the tax really be a concern for the deep-pocketed Cubs? Arguably not. Regardless, there’s a case that the Cubs won’t get hurt by letting Strop walk, even though a divisional foe grabbed him for a relatively inexpensive guarantee. Strop was an excellent late-game option for a large portion of his tenure in Chicago, but he took noticeable steps backward last year. For example, Strop posted the worst full-season run prevention marks of his career (4.97 ERA/4.53 FIP) and one of his highest walk rates (4.32 per nine) across 41 2/3 innings. Furthermore, after averaging more than 95 mph on his fastball in each of his prior seasons as a Cub, his mean velocity dropped to 93.7 in 2019. A Strop rebound remains possible, though, and the Cubs are left to hope he doesn’t return to his old form for a Reds team that bought low on him.
Maybe the Ricketts should take two dollars from every ticket sold this season and buy powerball tickets. If they win the jackpot, then they can go crazy on roster upgrades.
After the taxes? They might be able to afford a scratcher
I’ll take, “When billionaires cry poor” for $1200, Alex.
As a Pirates fan nothing better than seeing the formerly arrogant Cubs fans become crybabies
Gold.
I guess when things are going as well as they are for the Pirates, it’s easy to mock other teams.
Ha.
Glad to see fans of other teams notice the arrogance of the crybaby cub fans.
Who are the Pirates? They havent been relevant in years. Funny to see a fan of that crappy franchise trying to talk crap. Cute.
I’ve been a cub fan for over 40 years , not sure exactly what crybaby fans you are referring to I’m just happy to finally see that my Cub team won a World Series before I died whatever happens from this point forward does not matter to me cuz at least I got to see them win once.
Its themed. Biggest tool here.
I was thrilled that the Cubs won the WS. But to say you don’t see the team and fans being whiners over the last 5 years is being delusional.
Yeah it’s like they’re trying to run a business or something.
Trying to run a business badly.
Not putting the best team on the field that you can because you are scared of $7M? Ricketts should be forced to sell this team if he’s that big a coward.
Cubs AND Pirates are owned by worthless billionaires who are shaming the game and MLB should force them both to spend or sell.
You mean MLBPA. MLB (the owners) doesn’t seem to care.
The problem is the Cubs have too much money invested in players who aren’t playing up to expected levels, or are just plain overpaid. Heyward is the poster child, but they also have a lot of money tied up in Chatwood and if Darvish doesn’t continue to pitch as he did in the 2nd half of 2019 then add him to the list.
They also have a couple of high draft picks who havent panned out yet in Almora and Happ. Both were drafted to fill critical roles and both have failed: Almora doesnt seem to have the bat to be a regular in CF and Happ was supposed to be the 2nd baseman at this point and probably wont ever be a started there because of his glove.
What happened to all the “Cubs print money” and “Marquee network gonna rake” comments?
@chi I bet if you pull up all of those all threads you’ll be able to still see those comments. To answer your question
It’s hard to imagine that both won’t apply this year. Cubs’ ownership simply wants to earn more profits as a business decision.
They’re really really bad at budgeting construction projects?
Especially when they’re caught trying to sneak by justifying it with old handicap accessibility laws
they’re tired and hallow statements
Its ridiculous to think a TV network is going to bring in huge revenue when first launched.
I’m not defending the Cubs, as they have money to spend, but people tend to underestimate how much the luxury tax actually is. If the Cubs are over this year AND next year, they could be spending upwards of 75 million dollars in taxes as second and third time offenders. I’m thinking that they are trying to get under this year so they can go over next year when their core 4 have to be signed.
They won’t sign more than two of their “core four,” and probably only one. It looks like it will be Baez.
As a Yankees fan, I’m well aware of the luxury tax implications and how much money the Cole signing effects the Yankees’ spending. Getting under the threshold for the Cubs is the right move if being over only improves the team very marginally, if that.
They would have to be way over the tax threshold of $208M to reach $75m in taxes within 3 years. The highest tax payment is 75% of Salaries as a 3 time, consecutive offender. So in order to pay $25M in tax penalties, they would need to be in year 3 and spend $33 – $35M over the CSP of $208M to get there. If they are only $6M – $10M over the cap, the tax penalties are $4.5M – $7.5M which is nothing when your revenues are north of $400M per year. They are making money and will still make money after paying CBT penalties. They are just being cheap and foolish as they only have a 1-2 year window left to compete with this team as currently constructed.
There’s far more that goes into the tax penalties than the 75 percent for the 3 time offender. They also lose out on a cut of the luxury taxes that get paid back to the non-offenders in the league (which is going to be pretty big thanks to the Yankees), They also lose out on a portion of the revenue sharing fund in the 2nd and 3rd year of penalties, which is tens of millions of dollars on its own. They would also lose out on money coming back to them because the A’s are being transitioned from small market to large market.
Thank you for this, Clem.
I think your $75 million estimate may be high, but the right answer is definitely a lot more than the $7.6 million they paid in 2019.
I also think the owners are building their line of defense for the next CBA coming up at the end of 2021 by not staying in the luxury tax phase for too long.
The players are going to have to strike to get rid of it.
No they won’t
They only pay a tax on the amount over. Even if they are way over at 220M, the tax bill would be 40% of 12M… 3M? Even if it’s 50%, it’s 6M
It’s pocket change. They just don’t want to pay it knowing the roster is mediocre at best. But can’t afford less than 2M for an arm? LMAO that’s sad
Read what I wrote. There isn’t just a tax on the overage.
The cubs don’t receive any of that money. The cardinals do but the cubs do not
Yes, they absolutely do. I’m not talking about the money that goes to small market teams. These are separate revenue streams.
You are wildly misinformed.
make an argument. I’m pretty sure at this point I know more than you do.
Hmmm…seems they could, you know, deal with that next year then.
There’s no way they’d spend $75M in taxes. The Cubs could’ve added $30M to this year’s payroll and paid an additional $12.6M in taxes. They only paid $7.6M in 2019 taxes.
As a third-time offender, they’d need to clear the base tax line by nearly $100M to reach $75M in overage penalties.
I’d say rather than most underestimating the tax penalty, you’re substantially overstating it.
I think your math is way off. I don’t think their tax bill would approach 20, much less 75 mil. Remember, they only pay a percentage of the amount they go over. It’s really not much of a financial deterrent. It’s more of an excuse owners can use not to spend.
That’s not all they pay, as I posted above. To clarify, the 75 million would be over 2 years, but there are multiple ways they pay, and/or lose money if they go over the cap for 3 years. My math is not way off.
Yes I can hear you Clem Fandago!
Losing Strop wasn’t really about the money. 34 year old relievers with declining velocity, wildness and injuries, aren’t exactly high up on the free agent top 30 list. Evidently, other teams felt the same based on what he ended up signing for.
Exactly right. But fans don’t want to hear it’s performance or age related because they love guys who have been there. The irrational love placed on players who are fungible commodities…nothing more.
True…but who takes his spot? Will someone earning the minimum perform better?
Losing Strop might not have been about saving money. Spending a total of $3.5M in free agency this winter absolutely was, though.
I’m still shocked that McHugh remains unsigned. His velocity must be way down or perhaps he is still injured like Aaron Sanchez is. One would think McHugh could be had for cheap right now and the Cubs or Red Sox would be all over him.
Puig too, although he’s probably is looking for 5/100 so it might be on him.
McHugh to the Red Sox.
Just maybe if the guy would learn to put his hat on straight could be better I think the damn hat is throwing him off balance
He actually wears his hat that way because of his grandfather. Somehow I witnessed some crap story about the hat brim.
@Cubfan Mike – how about you stop telling a 12 year veteran of the game how to present himself, when he’s proven that his own style works? What a coward post.
Oh wait, you are probably one of those “I pay to watch games, therefore I tell them how to live their lives and how to present themselves and to not have any kind of personal style”, types arent you?
Puke.
That you Trevor?
I love seeing cocky cubs fans get mad it’s great
they’ll still be one of the best teams in baseball this year
Sure, they’re in the top half of teams. They’re above average.
That bullpen is going to send them closer to .500 so fast though. Should have signed Strop!
the luxury tax is basically a salary cap
Only if your owner is scared of $7M.
“Scared money don’t make no money”
Even when Strop was “on,” I never felt like a lead was safe.
Cubs tried hard to retain him…..contrary statement to what every cub fan wants to believe
Reds can have Strop…….it was time to move on ……
No big loss. for the Cubs…….but Strop will lose at least 10 games for the Reds…..
Middle relievers are a Dime a Dozen in this league…..not $1.825 million.
lets see if he can keep that cap on straight with his new team !
I just wish people understood that the Cubs don’t have any money.
That you Trevor?
Anyone that knows understands the Cubs issue isn’t this years salary cap, it’s creating flexibility to sign long term deals to their players. They already spend among the top 2-3 in all of baseball and Baez, Bryant, Contreras, Rizzo, Schwarber…and Future pitching needs- Theo is having to plan for the future