According to a report from USA Today’s Bob Nightengale, the Cubs have exceeded the luxury tax threshold for the second consecutive season. This is bad for a number of reasons, not the least of which is that they’ll have to pay a penalty on the overage. I should note right off the top that the report does not offer a breakdown of the salary figures, but only states that they came from “year-end payroll reports submitted to MLB, and obtained by USA TODAY Sports.”
The Cubs were one of six teams to have gone past the $195 million mark, though only the Dodgers ($244 million) and Yankees ($209.3 million) did so on base payroll alone. In addition to the AAV of player contracts, teams must factor in awards bonuses and another $13 million in benefits, insurance, etc. for the overall 40-man roster. Taking their reported $186.5 million base, that would put the Cubs at approximately $199.5 million overall (a number the report only insinuates but not actually put in print), less than $5 million over the line.
We’ll get to some more details on the numbers in a bit, but let’s first discuss exactly how bad it would be …Read the Rest
Source:: Cubs Insider