Payroll Update

In News And Rumors by dmick89122 Comments

Tom Ricketts had said that the overall baseball expenses would remain the same this season, but that seems difficult to accomplish at this point. The payroll was around $140 million last year and if you add in the draft, international free agent signings, front office employees you’re up to over $180 million. The Cubs front office has gotten larger and more expensive, but the CBA will hold down the amount the Cubs can spent on amateur talent. It was thought the payroll would be in the $120-130 million range awhile back, but that seems highly unlikely.

The Cubs currently have 15 players who are under contract or arbitration eligible. You can check out the payroll page here for the details if you’d like. I’ve been updating it regularly this offseason and did so before this article. As always, you can find this on the menu under Roster for future reference.

Using Matt Swartz’s estimated arbitration values the Cubs are currently on the hook for $79 million. But they are sending $15+ million to the Marlins so that must be added in. We’ll assume that Volstad earns $2.6 million so the Cubs will send $15.4 million to Miami. Now we’re up to $95.5 million.

It would be surprising if the Cubs did not re-sign Kerry Wood so let’s assume he’s paid a little more than market value. We’ll go with $3 million. $98.5 million to 16 players plus payment to Miami for Zambrano.

If the Cubs filled out the roster with 9 league minimum players that would increase the payroll to $102.8 million. Add in the 15 additional players on the 40-man roster and right now we’re at $103.6 million. Getting the payroll to $120-130 million just isn’t going to happen.

I don’t particularly care what the payroll is in 2012. They’re not going to contend so it doesn’t much matter to me. I don’t believe Ricketts lied either. At the time of his comment I’m not sure he knew which direction Theo and Hoyer would take this team. I’m not sure Theo and Hoyer knew. They’ve decided it’s best to rebuild the farm system and as a result the payroll will be trimmed. As long as they increase the payroll to an acceptable amount for a large market franchise when they are ready to contend I don’t much care.


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Comments

  1. Suburban kid

    I’m sure they’re using some of the savings on beefing up everything to do with scouting and development. There obviously wasn’t any money left over for that before. Now there is.

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  2. DamageControlFreak

    It’s pretty obvious: The $26 million gap between the $130 million projection and the current$104 million payroll is a secret reserve for a suprise singing of Fielder. Seems like they’re up to making a splash before the Convention after all!

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  3. Recalcitrant Blogger Nate

    I’m still convinced some of it is being saved for a run at Soler, and maybe Cespedes too. After this year, the oportunity to spend big on a IFA is gone.

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  4. Rice Cube

    [quote name=Recalcitrant Blogger Nate]I’m still convinced some of it is being saved for a run at Soler, and maybe Cespedes too. After this year, the oportunity to spend big on a IFA is gone.[/quote]
    I agree with this. I’d expect them to try to sign at least one.

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  5. JMan

    [quote name=Recalcitrant Blogger Nate]I’m still convinced some of it is being saved for a run at Soler, and maybe Cespedes too. After this year, the oportunity to spend big on a IFA is gone.[/quote]I’m of the same mindset but I also wonder if a lot of this was to bid on Darvish.
    What I imagine happening now is the FO potentially trying to sign some of the remaining FA to 1-year contracts in order to gain a draft pick while the player tries to rebuild their value for the market next year. Someone like Jackson or Oswalt.

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  6. Rice Cube

    [quote name=JMan]I’m of the same mindset but I also wonder if a lot of this was to bid on Darvish.
    What I imagine happening now is the FO potentially trying to sign some of the remaining FA to 1-year contracts in order to gain a draft pick while the player tries to rebuild their value for the market next year. Someone like Jackson or Oswalt.[/quote]That’s not a bad idea but for someone like Oswalt who’s getting up there I think he’d probably bite on a one-year $12.5MM or whatever the compensation threshold is.

    [quote name=Chris]I wonder: Will Ricketts let them Theo put that extra $20 million in a piggy bank to spend next year or in 2014?[/quote]
    I think the initial deal was that Theo and Jed have almost complete autonomy in spending whatever Ricketts plops in their laps. Makes me think also that they can just let the unspent money ride in an investment account, sort of like an endowment.

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  7. GBTS

    Jose Bautista shirtless:

    Yeah, I don’t think that guy is doing steroids. We should make sure he never visits the HoF though, just to be safe.

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  8. Rice Cube

    [quote name=GBTS]
    Yeah, I don’t think that guy is doing steroids. We should make sure he never visits the HoF though, just to be safe.[/quote]
    Being that he used to look like this, I think we can continue to suspect him as a user:

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  9. Mish

    [quote name=GBTS]Jose Bautista shirtless:

    Yeah, I don’t think that guy is doing steroids. We should kick out all latino players until we’re sure he didn’t use any, though.[/quote].

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  10. mb21

    [quote name=Chris]I wonder: Will Ricketts let them Theo put that extra $20 million in a piggy bank to spend next year or in 2014?[/quote]I doubt it will be used like that. I’m sure it will be used to pay on the debt the family still has.

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  11. dylanj

    well my day is shot. I logged into facebook only to have my feed present me with a picture of a dead infant. Somebody decided it would be a good idea to post their lost baby online. I hate technology.

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  12. Mish

    [quote name=dylanj]well my day is shot. I logged into facebook only to have my feed present me with a picture of a dead infant. Somebody decided it would be a good idea to post their lost baby online. I hate technology.[/quote]WTF

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  13. dylanj

    i have no idea man. They dressed it up in clothes and took a picture of it. And it was very very dead. I feel like going home and getting back under the covers.

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  14. Rice Cube

    [quote name=dylanj]i have no idea man. They dressed it up in clothes and took a picture of it. And it was very very dead. I feel like going home and getting back under the covers.[/quote]I’m not an expert in etiquette but that kind of thing seems like it should be taboo.

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  15. Mish

    [quote name=dylanj]i have no idea man. They dressed it up in clothes and took a picture of it. And it was very very dead. I feel like going home and getting back under the covers.[/quote]That’s awful and probably reportable.

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  16. Mucker

    [quote name=mb21]I doubt it will be used like that. I’m sure it will be used to pay on the debt the family still has.[/quote]Not to mention Wrigley renovations. I’m sure Ricketts and family are perfectly fine seeing an extra $40 million in profit.

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  17. Suburban kid

    [quote name=mb21]I doubt it will be used like that. I’m sure it will be used to pay on the debt the family still has.[/quote]Yeah I don’t think any business organization runs that way. You don’t carry a budget surplus over to the next year.

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  18. jtsunami

    JG has been weak with the memes lately. I usually looked forward to seeing something funny in the morning at work. Now I just keep refreshing twitter and counting down the minutes until I need to poo.

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  19. Rodrigo Ramirez

    Hey MB, quick question.

    I run a website and was wondering where you got the share bar? I presume you just embed some HTML right? Currently I’m only using the twitter button but would like to add FB, Google+1, etc. Thanks.

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  20. Rice Cube

    [quote name=Suburban kid]Yeah I don’t think any business organization runs that way. You don’t carry a budget surplus over to the next year.[/quote]Don’t businesses have a “cash reserve” pool though? Or do you really think they’ll just tell the boys in the front office to spend it all?

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  21. Rodrigo Ramirez

    [quote name=Rice Cube]Don’t businesses have a “cash reserve” pool though? Or do you really think they’ll just tell the boys in the front office to spend it all?[/quote]
    In my office if there is a surplus in a certain department, they are told to spend it before year-end.

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  22. Suburban kid

    [quote name=Rice Cube]Don’t businesses have a “cash reserve” pool though? Or do you really think they’ll just tell the boys in the front office to spend it all?[/quote]They don’t have to spend it.

    Sure, in larger organizations, no one ever lets that happen so they don’t get given a smaller budget the next year.

    In this situation, I’m sure it’s all discussed with the big boss. “I don’t need 140M this year for MLB, but I’ll need it next year”. The extra 30M this year goes in to some other budget for this year. MB suggested the debt servicing budget, for example.

    I’m no accountant, but I’d say cash reserves are kept more for unanticipated costs and emergencies, rather than hoarding operating budget from one year for the next.

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  23. Dr. Aneus Taint

    [quote name=jtsunami]JG has been weak with the memes lately. I usually looked forward to seeing something funny in the morning at work. Now I just keep refreshing twitter and counting down the minutes until I need to poo.[/quote]
    I’ve been…busy.

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  24. WenningtonsGorillaCock

    [quote name=mb21]As always, you can find this on the menu under Roster for future reference.[/quote]
    I never noticed either the menu at the top or the Roster link. I usually just skip right down to “refresh comments list” (dying laughing)

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  25. Rodrigo Ramirez

    From Gordo:

    In fact, we may find out just how powerful their marketing draw is sooner than later. Sources say early 2012 marketing campaigns that were expected to focus heavily on Castro have shifted to other team personnel, including the new manager, Dale Sveum.

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  26. mb21

    [quote name=Rodrigo Ramirez]Hey MB, quick question.

    I run a website and was wondering where you got the share bar? I presume you just embed some HTML right? Currently I’m only using the twitter button but would like to add FB, Google+1, etc. Thanks.[/quote]It depends on what software you’re using. We use Joomla and there a number of extensions that add sharing features. I can’t remember what it’s called off the top of my head, but if you’re using Joomla I’ll look into it. Out of curiosity, what site do you run?

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  27. mb21

    In fact, we may find out just how powerful their marketing draw is sooner than later. Sources say early 2012 marketing campaigns that were expected to focus heavily on Castro have shifted to other team personnel, including the new manager, Dale Sveum.

    That kind of sucks for the team. What other player can they market? Rizzo would be one, but he’s going to the minor leagues. I suppose they could market the minor leagues (dying laughing).

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  28. Mish

    [quote name=mb21]That kind of sucks for the team. What other player can they market? Rizzo would be one, but he’s going to the minor leagues. I suppose they could market the minor leagues (dying laughing).[/quote]After Castro, the players that excite me the most are Jackson and Rizzo. So yeah, the new advertising direction will likely boost sales for AAA-Iowa and AA-Tennessee (dying laughing)

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  29. Berselius

    [quote name=mb21]That kind of sucks for the team. What other player can they market? Rizzo would be one, but he’s going to the minor leagues. I suppose they could market the minor leagues (dying laughing).[/quote]
    Shoulda kept Koyie Hill

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  30. mb21

    [quote name=Rodrigo Ramirez]MB I manage http://www.chicagolandchamber.org which is run on a custom built CMS, which sucks BTW.

    That’s why I was hoping to just embed some HTML rather than have to work with the developers on creating something.[/quote]I know I’ve seen some custom code for embedding FB and +1 buttons. I’ll look around this afternoon.

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  31. Berselius

    [quote name=Recalcitrant Blogger Nate]I’m still convinced some of it is being saved for a run at Soler, and maybe Cespedes too. After this year, the oportunity to spend big on a IFA is gone.[/quote]
    FWIW, aren’t both of those guys over the age limit in the IFA rules anyway? I thought those IFA rules were more for guys in the 16-22 range.

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  32. mb21

    [quote name=Berselius]Shoulda kept Koyie Hill[/quote]Makes every player better by 0.1 WAR.

    That’s all they would have to say. A 30-second ad could feature all of Koyie Hill’s hits.

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  33. mb21

    [quote name=Berselius]FWIW, aren’t both of those guys over the age limit in the IFA rules anyway? I thought those IFA rules were more for guys in the 16-22 range.[/quote]Cespedes isn’t affected by the new rules, but Soler is only 21, right?

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  34. Berselius

    [quote name=DamageControlFreak]It’s pretty obvious: The $26 million gap between the $130 million projection and the current$104 million payroll is a secret reserve for a suprise singing of Fielder. Seems like they’re up to making a splash before the Convention after all![/quote]
    They can make a splash by inviting Fielder to the convention and pushing him into a fountain.

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  35. Berselius

    [quote name=mb21]Cespedes isn’t affected by the new rules, but Soler is only 21, right?[/quote]
    No clue (dying laughing). I’m just working under the assumption that if either of those guys were young they would have already been snapped up by someone. The number that have been thrown around suggested to me that they’re both older defectors that people didn’t have a shot at originally.

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  36. Mish

    [quote name=Berselius]They can make a splash by inviting Fielder to the convention and pushing him into a fountain.[/quote]-1 for using this same joke on Twitter yesterday (dying laughing)

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  37. mb21

    I saw a headline on MLBTR: Fielder will sign before spring training.

    No shit?

    What’s next? Fielder will sign before 2012 season begins.

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  38. Mish

    [quote name=mb21]I saw a headline on MLBTR: Fielder will sign before spring training.

    No shit?

    What’s next? Fielder will sign before 2012 season begins.[/quote]
    Fielder will eat and sleep within the next 48 hours (barring a coke binge)

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  39. Dr. Aneus Taint

    [quote name=Rodrigo Ramirez]MB I manage http://www.chicagolandchamber.org which is run on a custom built CMS, which sucks BTW.

    That’s why I was hoping to just embed some HTML rather than have to work with the developers on creating something.[/quote]
    I bet each site has some javascript or iframe you can use to create your own.

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  40. mb21

    [quote name=dylanj]BREAKING- Sources have informed me that Prince Fielder will play baseball for a team in 2012[/quote]They’ve also confirmed to me that he will make money doing so.

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  41. mb21

    Let me know if those work or if you’re looking for something else. I think it’s doubtful there will be a series of social bookmarking buttons you could add using code unless you paid to have an extension created.

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  42. jtsunami

    /web site nerd stuff

    [quote name=dylanj]BREAKING- Sources have informed me that Prince Fielder will play baseball for a team in 2012[/quote]You forgot to credit @PWSullivan for the info.

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  43. JMan

    [quote name=dylanj]Soler falls under the CBA Cespedes does not.[/quote]Are you positive Soler falls under the new CBA rules? Because if so then he’s not going to come close to the 20M projected contract I see bandied about.. I’m fairly sure he’s grandfathered into the old CBA.

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  44. ACT

    [quote name=dylanj]BREAKING- Sources have informed me that Prince Fielder will play baseball for a team in 2012[/quote]HEARD THIS: The team Fielder signs with will be in either the American or National baseball league.

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  45. dylanj

    from MLBTrade Rumors (via Paul Sullivan of course)

    Soler, 19, has also been linked to the Yankees, Phillies, Nationals, Cubs, and Rangers this offseason. Nationals Director of International Scouting Johnny DiPuglia has watched Soler for years, and told Adam Kilgore of the Washington Post, “He’s got a Hanley Ramirez-type body. Plus arm. Plus bat speed. He’s a good kid, a good-energy kid.” Though Soler would need more minor league seasoning, it’s been written he could have more upside than Cespedes. Soler is younger and more talented than the Rangers’ Leonys Martin, wrote Baseball America’s Jim Callis, so he figures to beat Martin’s $15.6MM contract. Callis notes that the $2.9MM international signing cap installed in the new CBA doesn’t begin until the 2012-13 signing period, so as long as Soler signs before July 2nd, there are no limitations.

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  46. Rice Cube

    [quote name=dylanj]2.9 million per team for ALL int’l signings. Thats how they get their precious world draft.[/quote]

    Maniacal laugh…maniacal laugh…

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  47. mb21

    [quote name=dylanj]2.9 million per team for ALL int’l signings. Thats how they get their precious world draft.[/quote]After the first year or two it’s based on performance so since the Cubs are going to suck ass the next few years they’ll have more than that to spend. Same with the draft too.

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  48. Rice Cube

    From Beyond the Box Score’s front page:

    I’m just wondering. Does anyone really care to stack up Mickey Mantle’s integrity and character next to, say, Jeff Bagwell’s? Or for that matter, Mark McGwire’s? Or Rafael Palmeiro’s? Baseball players have been exhibiting monumental deficiencies of integrity and character for well more than a century, and it’s just now that Hall of Fame voters are going to take those words seriously?

    Hey, While We’re At It, Can We Kick Mickey Mantle Out Of Cooperstown? – Baseball Nation

    It suddenly strikes me that Rob Neyer is both the hero we deserve, AND the hero we want.

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  49. mb21

    People care now, but voters in 25 to 50 years won’t. That’s what is so funny about all of this. They spend so much time trying to keep someone out who will get in anyway.

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  50. mb21

    [quote name=dylanj]Seriously though, is there a single move concerning this team that our beat writers break first?[/quote]Bruce Levine has and David Kaplan has a solid source. The guys who you’d think would provide the most scoops have provided 0 of them. Whittenmeyer, Sullivan and Miles are useless at their job. The only damn thing of relevance they can provide in the offseason is news about upcoming moves and they don’t. I guess they all want to be more irrelevant than they ever have been. That makes me happy.

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  51. Rice Cube

    [quote name=dylanj]Cubs FO working with Bloomberg Sports to develop a state of the art player evaluation system. CARMINE 2.0[/quote]
    Cubsmine!

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  52. mb21

    There are two things I want from beat writers and only two things: some inside information on transactions and other business decisions along with quotes from players after games. Whittenmeyer, Sullivan and Miles are awful at both. Muskat has no scoops but she at least provides 50 times the player quotes after games than the others combined. Other than those two things, beat writers have been irrelevant for a decade. It’s remarkable that 3 of them haven’t figured it out.

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  53. Aisle424

    [quote name=mb21]There are two things I want from beat writers and only two things: some inside information on transactions and other business decisions along with quotes from players after games. Whittenmeyer, Sullivan and Miles are awful at both. Muskat has no scoops but she at least provides 50 times the player quotes after games than the others combined. Other than those two things, beat writers have been irrelevant for a decade. It’s remarkable that 3 of them haven’t figured it out.[/quote]Miles may be breaking stuff left and right, but he’s behind the paywall nobody pays for.

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  54. mb21

    [quote name=Aisle424]Miles may be breaking stuff left and right, but he’s behind the paywall nobody pays for.[/quote]He might be, but has he ever broken news before? As much as I make fun of Sullivan for never doing it, I can at least remember a few times he has. I cannot remember anything that he’s broken. This is kind of sad because he’s the most intelligent of the group, but I can get better opinions elsewhere.

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  55. Aisle424

    I kind of feel bad for Bruce Miles. His paper doesn’t even pay to send him to Spring Training. Al has more access at this point.

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  56. JMan

    [quote name=PFD]I’m guessing Al’s open letter to Theo and Jed demanding the Cubs sign Wood has been talked about already? If not, grab your vomit bag and get excited!:

    http://www.bleedcubbieblue.com/2012/1/11/2699285/kerry-wood-theo-epstein-jed-hoyer-cubs-open-letter%5B/quote%5DI used to feel bad for people like Al. Then I realized they were having children and I am now sad for the rest of us that have to put up with this nonsense.

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  57. JMan

    [quote name=Rice Cube]http://www.mlbtraderumors.com/2012/01/giants-agree-to-two-year-deal-with-vogelsong.html

    Am I missing something, or is this a better, more team-friendly contract than the one the Cubs signed Paul Maholm to? There’s an extra year thrown in, but based on Vogelsong’s performance it seems like they underpaid.[/quote]Likely because he wasn’t a FA.

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  58. The Wreckard

    [quote name=Recalcitrant Blogger Nate]I’m still convinced some of it is being saved for a run at Soler, and maybe Cespedes too. After this year, the oportunity to spend big on a IFA is gone.[/quote]I thought those limits were already in effect this year, but equal for everyone? And that after this year your cap is determined by your record?

    Either way, my understanding is that Cespedes would be unrestricted anyway since he’s over 22..

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  59. The Wreckard

    [quote name=The Wreckard]I thought those limits were already in effect this year, but equal for everyone? And that after this year your cap is determined by your record?

    Either way, my understanding is that Cespedes would be unrestricted anyway since he’s over 22..[/quote]OH HEY LOOK YOU ALREADY COVERED THAT.

    Wreckard: timely comments since 2006.

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  60. Aisle424

    [quote name=Berselius]http://www.thebestpageintheuniverse.net/c.cgi?u=math

    (dying laughing)
    (dying laughing)
    (dying laughing)[/quote]
    I would say geography gets the same basic treatment. “I’m not good with maps.” Are you fucking kidding me?

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  61. Berselius

    [quote name=Aisle424]I would say geography gets the same basic treatment. “I’m not good with maps.” Are you fucking kidding me?[/quote]
    (dying laughing), no kidding. Though I always figured I was biased in that regard as map-making put bread on my table.

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  62. Aisle424

    [quote name=Berselius](dying laughing), no kidding. Though I always figured I was biased in that regard as map-making put bread on my table.[/quote]I had a friend who had high school kids label a map of the world and they were labeling landmasses as oceans, they put Japan in Africa, Canada in the Antarctic, all sorts of crazy shit, like they had never seen a map before or were intentionally trying to be as wrong as possible.

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  63. Aisle424

    Almost half of them couldn’t label Illinois on a map of the United States. These kids were in fucking high school.

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  64. Berselius

    [quote name=Chuck Kimmel]Sorry to correct you on your own show, Casey, but there are 52 states with Alaska and Rhode Island.[/quote].

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  65. Aisle424

    BREAKING: Bruce Levine listens to Boston Radio!

    [quotename=Bruce Levine]Theo Epstein ; compensation still not resolved with Red Sox. Weei radio interview.[/quote]

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  66. Rodrigo Ramirez

    [quote name=mb21]Let me know if those work or if you’re looking for something else. I think it’s doubtful there will be a series of social bookmarking buttons you could add using code unless you paid to have an extension created.[/quote]
    Yes this will work, thanks. I’ll just consecutively add the different codes so we are displaying them all next to one another.

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  67. WenningtonsGorillaCock

    [quote name=Bruce Miles]Bruce Miles @BruceMiles2112 Don’t do it. There’s still time for you. RT @cst_Cowley: And yes, I will be attending my first Cubs Convention on Friday. First ever![/quote]
    (dying laughing)

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  68. GBTS

    re: Signing Kerry Wood

    I was one of the 15,758 in attendance that day, May 6, 1998, for Kerry’s 20-K game.

    Weekday games in May draw a lot more than that now. One of the reasons they do is Kerry Wood.

    by Al Yellon on Jan 11, 2012 11:33 AM CST up reply

    SCENE: A nondescript cubicle in a Loop office building.
    CHRIS: Hey Mike, you wanna skip that 1:30 conference call and check out that Cubs-Diamondbacks game?
    MIKE: You’re damn right I do! Kerry Wood struck out 20 guys this one time fourteen years ago!
    (High-five)
    SCENE

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  69. Rice Cube

    [quote name=GBTS]re: Signing Kerry Wood

    SCENE: A nondescript cubicle in a Loop office building.
    CHRIS: Hey Mike, you wanna skip that 1:30 conference call and check out that Cubs-Diamondbacks game?
    MIKE: You’re damn right I do! Kerry Wood struck out 20 guys this one time fourteen years ago!
    (High-five)
    SCENE[/quote]I’d do that but only if the tickets were free.

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  70. Suburban kid

    [quote name=Mercurial Outfielder]The Score is reporting that Castro will attend Cubs Con.[/quote]Has Al met Castro yet? Because charity, not taking PEDs, not raping women and not raping boys are not the only measures of a good person.

    [quote name=Alvin]I don’t have a lot of favorite players, but Kerry Wood is near the top of the list. Having met the man on a couple of occasions, I also know he’s an outstanding human being[/quote]
    Alls ya gotta do is meet Al a couple times.

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  71. Suburban kid

    Just received the Cubs offer for a 9-game package.

    They have the games in various groups insuring at least 5 of the 9 games you get are shitty.

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  72. Rice Cube

    [quote name=Suburban kid]She offered to “make” them, eh?[/quote]With all the love she can muster. Are you allergic to nuts?

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  73. Aisle424

    [quote name=mb21]I’m OK with that.[/quote]I think it’s a bad PR mistake, but backing him out has a downside too. I bet he doesn’t end up in a Q&A session though. He’ll just be places where he has to smile and wave, or smile and sign an autograph.

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  74. mb21

    [quote name=Aisle424]I think it’s a bad PR mistake, but backing him out has a downside too. I bet he doesn’t end up in a Q&A session though. He’ll just be places where he has to smile and wave, or smile and sign an autograph.[/quote]It could be a bad PR mistake to have him not attend too. Personally, I don’t care much about the PR. I’m speaking more in terms of him not being charged and only a heavily redacted police statement exists to our knowledge about the incidence. I’m not comfortable with an employer doing too much with only that information. If Castro is scheduled to speak to a group of women then it makes all the sense in the world to move him to a different event.

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  75. mb21

    If more information comes forward in the coming days and weeks then I think more aggressive actions need to be taken by the employer, but for now I really don’t want them to.

    Just my 2 cents.

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  76. Suburban kid

    If he’s innocent, surely he wouldn’t want to not attend.

    Same thing if he’s not but plans to plead innocence.

    I think the PR consultant quoted in this Crains piece had the right advice. Make a brief general statement acknowledging the situation, and then say he can only answer baseball questions.

    http://www.chicagobusiness.com/article/20120112/BLOGS04/120119921/castro-poses-pr-problem-for-cubs-at-annual-convention

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