Over the years, the Chicago Cubs have been pretty open about how they spend their money regarding MLB’s “luxury” tax. They often flirt with the number without going over it. However, they’re not afraid to go over it if they feel they have a chance of contending.
In short, the Competitive Balance Tax prevents big-market teams from spending too much more than smaller-market teams. They want teams like the Tampa Bay Rays and Pittsburgh Pirates to have opportunities like the Los Angeles Dodgers and New York Yankees. The tax punishes teams for staying over the threshold for more extended periods of time. Ideally, it encourages more equal spending between top-tier teams and bottom-feeder teams. In 2024, the tax threshold will be $237 million, and an increase will be anticipated in 2025.
On paper, the Cubs are very close to $237 million and have been speculated to be over the threshold. That would be their first time paying the tax since 2020. Owner Tom Ricketts and President of Baseball Operations Jed Hoyer have said they are not opposed to paying the tax so long as the team is in contention for a championship. They’ve long been criticized for not spending enough when under the threshold or poorly when above.
Talks of the team’s payroll have picked up over the last few weeks after some comments were made speculating the Cubs may be over the threshold and set to pay the tax. Hoyer returned to the radio on Tuesday morning and set the record straight.
Jed Hoyer Confirms Cubs Will Be Over The Luxury Tax For 2024
President of Baseball Operations Jed Hoyer confirmed to 670 The Score and listeners that the Cubs will be over the taxed line and will have to pay the Competitive Balance Tax for the 2024 season. While they were under the threshold for most of the 2024 season, Hoyer said signing outfielder Cody Bellinger back in February all but guaranteed the Cubs would be over the line. It’s expected the Cubs will also be over the line in 2025.
The confirmation of being over the threshold could be taken positively or negatively. On a positive note, the Cubs seem ready to win and compete for another title. The overflow of young talent has not shied them away from spending. If they were willing to be where they are in 2024, chances are 2025 will have them even more confident. It all will depend on how they spend and who they spend on.
On the other hand, the season is very close to becoming a wasted season while paying the tax, especially if the Cubs do not even make the playoffs. For most of 2024, the Cubs have been disappointing, to say the least. A brilliant August run has brought them back to life with a faint pulse. To date, they are still 3.5 games out of making the playoffs on the losing end of every tiebreaker imaginable, if it came down to that.
Does Jed get extended?