Gap between Cubs’ resources, spending could lengthen rebuild

[nickofypres]

http://www.suntimes.com/sports/2506...esources-spending-could-lengthen-rebuild.html

When Cubs business president Crane Kenney stood before a roomful of Cubs fans Saturday and described the relationship between spending and winning as a “chicken-and-egg” question, he unwittingly summed up everything potentially wrong and dangerous in the business approach to the team’s rebuilding plan.

At the very least, he summed up the message delivered by management during a 42-hour Cubs Convention devoid of buzz, optimism or straight answers: That this process might take longer than many envision — perhaps lasting until the end of the decade.

As baseball and business executives touted their big-name Class A players and bragged about their new $6 million Dominican academy and a publicly funded new spring facility, it became increasingly apparent there exists a sizable gap between available resources and baseball spending that could help assure the success of the rebuild.

“One of the things we were smart about was not to put a timetable on it,” baseball president Theo Epstein said as the convention opened Friday, acknowledging unforeseen delays in some of the business-related parts of the plan.

When asked about specifics, Epstein refused to talk about his budgets, any of the team’s other internal resources and decisions or the perceived disconnect between the business and baseball operations — except to suggest they’re on the same page.

But based on what was said by team officials during the convention, the team’s actions in recent years and conversations with more than a dozen major-league sources, a picture emerges of a wealthy team pinching baseball pennies to compete even within its rebuilding plan.

Consider:

◆ Chairman Tom Ricketts has asserted since the family took ownership that all profits would be invested back into the team. But the payroll budget has declined to a low of just under $100 million this year, while revenues in the game have increased to industry-record levels.

◆ Kenney boasted Saturday about the Cubs’ fifth-highest revenue in the game, and the Cubs are ranked first in profitability by Forbes. But Epstein told fans Saturday that a big reason for a quiet winter is that he reserved payroll for a run at one big move (read: Masahiro Tanaka). If he doesn’t get him, he said he might roll the savings into next year’s budget — an eyebrow-raising admission considering the resource deficit it suggests. Especially for a team in need of players just to field a representative big-league club and the rarity of a practice that wasn’t allowed with the previous regime.

So where’s the money going if it’s not going to baseball?

The team’s major-league-high debt requires more than $30 million annually to service, and bank covenants restrict some levels of spending based on revenue. But Ricketts told fans the debt is only part of the financial puzzle, “not as big a piece of the puzzle as you think.” And he told the Sun-Times last fall that the family is allowed to spend what it chooses.

If Forbes is to be believed — and sources say Kenney had boasted around the office of the Cubs’ top rank in profitability before Forbes’ 2012 ranking was released — then it’s obvious some of the money that could be going to baseball is being taken in profits.

The promise is that spending will flow when new TV and stadium money start to flow. But one source cautioned against expecting the TV money to come next year. The big flows won’t start until the currently split deals can be consolidated after 2019.

“We still have a very strong baseball budget,” Ricketts told fans. “It is sufficient.”

NOTE: Despite reports that continue to call the Cubs front-runners for Masahiro Tanaka, signing the 25-year-old right-hander is a long shot for the team, which remains skeptical of its chances even with an aggressive effort.

 

[beckdawg]

I'm so beyond tired of the financial talk. The cubs have x money to spend. It doesn't matter if they should have y amount. X is what they have. It's really as simple as if Theo is good as he's been proclaimed he'll win. They aren't the marlins or the A's. $100 mil payroll is enough to be competitive. And quite frankly, better GM's should be able to win with less.

 

[Mr. Cub]

Screw it, man! We are the Cubs and we will never, ever win again. That's just how it is and will be. Excuse after excuse, weak team after weak team, shitty FO after shitty FO. WE ARE CUBS BASEBALL!

 

[patg006]

[/QUOTE]NOTE: Despite reports that continue to call the Cubs front-runners for Masahiro Tanaka, signing the 25-year-old right-hander is a long shot for the team, which remains skeptical of its chances even with an aggressive effort.[/QUOTE]

And yet, those of us who wanted our front office to be competitive these past few years, but were told 'what's the difference if you win 60 or 80 games, there's no play offs so you should take the higher draft pick.'

This is why. You cant sell lottery tickets to a guy with the upper hand on everybody feverishly overspending on him. The cubs have high hopes but no guarantees, and money, that doesn't compare to what other teams have. Intentionally tanking seasons doesn't attract big name players. Fifth in overall revenue. First in profitability. I fail to believe this team is cash-strapped.

Had the cubs won 80 games last year with money spent on FA, I wonder which number he would be picking out, because Chris Rusin has 18.

 

[chibears55]

Round and Round the discussion of payroll goes on this board. .
no matter who would have bought the cubs the payroll would still be the same near 100 Mil. because of what Zell insisted on having (Debt Terms) agreed on with whomever he sold the team to.

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[SilenceS]

Round and Round the discussion of payroll goes on this board. .
no matter who would have bought the cubs the payroll would still be the same near 100 Mil. because of what Zell insisted on having (Debt Terms) agreed on with whomever he sold the team to.

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Who says other possibly owner would have agreed to the terms?

 

[chibears55]

Who says other possibly owner would have agreed to the terms?

those terms are what had to be agreed upon before he sold the team to anyone.. if you wanted to buy the team you had to agree to those terms that was in the contract.

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[SilenceS]

those terms are what had to be agreed upon before he sold the team to anyone.. if you wanted to buy the team you had to agree to those terms that was in the contract.

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What? Why? Wouldnt that just take away all negotiations? He was desperate to sell the Cubs. I dont see how he would have all the leverage.

 

[chibears55]

What? Why? Wouldnt that just take away all negotiations? He was desperate to sell the Cubs. I dont see how he would have all the leverage.

obviously it didnt. . all it takes is to have one person to agree.

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[daddies3angels]

i find it funny how national writers and local writers are bashing Cubs but bloggers are defending Cubs to max. Right now Cub nation is split in halve. 50% love rebuilding way Cubs are why other 50% thinks they doing it wrong.

 

[beckdawg]

i find it funny how national writers and local writers are bashing Cubs but bloggers are defending Cubs to max. Right now Cub nation is split in halve. 50% love rebuilding way Cubs are why other 50% thinks they doing it wrong.

Writes(both bloggers and actual news reports) generally have no idea what they are talking about to be honest. To be fair to them, they often have a limited picture and often their goals aren't the same as a GM's. For example, their goal is to sell newspapers/get internet traffic. My biggest problem with national media is they generally take a narrow view of things. They lord praise on teams like the Marlins 2 years ago and then when that blew up and they dealt their players to the Jays they lorded praise on the Jays. It's rare they go back and objectively talk about what went right because by that time they are hyping up the next big FA pool. The only time smart moves seem to matter is when you win a title. Then they will talk up the great signings of guys like Victorino....etc That's why I prefer sites that focus on stats because they are less concerned with the who and more concerned with the what they caused and why that lead to more/less wins.

 

[DewsSox79]

i find it funny how national writers and local writers are bashing Cubs but bloggers are defending Cubs to max. Right now Cub nation is split in halve. 50% love rebuilding way Cubs are why other 50% thinks they doing it wrong.

anyone can blog that has a computer,smartphone,ipad.


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[Flacco4Prez]

What a joke. Any excuse to keep pocketing cash while having few expenses.