The last year of the Tribune ownership of the Cubs, team payroll was $203.7 million. Except for Ricketts first year of ownership, payroll has dramatically decreased.
Year Owner Hitters Pitchers Total Change
2009 Tribune $139.65M $64.06M $203.7M
2010 Ricketts $145.8M $69.34M $215.1M +5.5 %
2011 Ricketts $125.04M $53.8M $178.8M -16.9%
2012 Ricketts $ 79.9M $44.5M $124.5M -30.4% (first year Epstein)
2013 Ricketts $ 56.3M $42.8M $ 99.2M -20.3%
2014 Ricketts projected $ 86.8M -12.5%
2015 Ricketts projected $ 56.3M -35.1%
The real Cubs payroll for 2014 is much lower, as it contains $14.5 million in dead money (obligations to past players no longer on the team). That puts the real player budget for 2014 at $72.3 million.
From Ricketts first year of ownership, payroll has declined dramatically. And it will continue to do so.
In 2015, $16 million of current player salaries is off the books, plus the dead money obligations or a total of $30.5 million. The base payroll for the 2015 Cubs would be only $56.3 million, another 35.1 percent decrease year over year. Since Ricketts ownership, team payroll is $158.8 million less than in 2010 or a projected decrease of 73.8 percent by 2015.
There has been a steady decline in budget allocated toward pitching (a real need area), but there has been an accelerated free fall in money for hitters.
When Ricketts and his business minions state publicly that the team has money to spend on talent, it clearly does not show up on the major league roster.
Ricketts has lashed out at questions about taking profits from the team, but he has no specifics on where the payroll savings has gone. Considering that the broadcast revenues have been steady (and nationally increased), ticket prices maintained at near the top of the league (but attendance being down), payroll savings since Ricketts took over ownership may be the real method of funding his outside real estate projects.
Payroll reduction from Ricketts 1st year:
2011: $36.3M
2012: $54.3M
2013 $25.3M
2014: $12.4 M (projected)
2015: $30.5 M (projected)
Total: $158.8M
Payroll savings from Ricketts 1st year baseline:
2011: $36.3M
2012: $90.6M
2013 $115.9M
2014: $128.3 M (projected)
2015: $158.8 M (projected)
Total: $529.9M
Steve Stone predicts that the Cubs prospect team will come to fruition in 2016. As such, rookie ball players will again command lower salaries than veteran free agents.
The team's statement that it can save the Tanaka signing money (noted only to be $20 million posting fee) and spend it later is an unfulfilled promise. If money is not spent, that means it is not an expense. Lower expenses increases the profit line on the balance sheet. There is no rule that says Ricketts must "return" the payroll savings to the baseball operations. On the contrary, he needs those funds for his other projects.
The other projects include a massive real estate development across from Wrigley Field. Those projects could lead to higher profits than the Cubs because those new venues would operate 365 days per year. In the new grand scheme of things, the Cubs are no longer a priority to ownership. And the declining payroll for the major league roster is a blunt clue to the owner's real motivations.
