Cubs Primed to Exceed Luxury Tax in 2019

The Cubs were very vocal about remaining under the $197 million luxury tax threshold for 2018, but they are already projected to exceed next year’s cap. Adding in MLB Trade Rumors’ arbitration estimates and barring any trades, the Cubs will be about $5 million over the $206 million limit. And that’s without factoring Cole Hamels’ $20 million option.

Those who visit my Cubs financial tracker will see that I maintain future arbitration estimates for all eligible Cubs out to 2022 in an effort to provide some sense of future payrolls. I update my estimates quarterly during the season, as dictated by player performance and I’m happy to report my end-of-year estimates differ by only $300,000 in aggregate from those at MLBTR. Below is a comparison of my estimates and those of the professionals.

Now that my estimates have been supplemented by MLBTR, I can confidently project the Cubs will have $211 million in luxury tax payroll, plus a $20 million option on Cole Hamels. Again, the 2019 luxury cap is $206 million.

The luxury tax (aka Competitive Balance Tax) charges teams a penalty for having payrolls above a preset limit. Additionally, teams lose 10 …Read the Rest

Source:: Cubs Insider

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