Cubs Owner Tom Ricketts Talks About Cubs Revenues, Team Spending, and Wanting to Play a Season

Chicago Cubs Owner and Chairman Tom Ricketts spoke to ESPN today about the nature of the financial issues facing MLB teams this year, as that relates to trying to put a deal together with the players to stage a season (instead of forcing the sport to go dark for 18 months, absolutely crippling all of MLB for a decade to come … ).

I think some context is necessary to pair with Ricketts’ comments, but I also think it’s important to read and understand what he has to say as part of the bigger pictures at play right now:

Ricketts, among other things, wants to make sure fans understand that MLB teams, in general, do not build up huge reserves of cash every year. Moreover, “most owners,” Ricketts said, do not take cash out of the team.

At the core of Ricketts’ comments is something he’s said since day one with the Cubs: the Ricketts Family does not take cash directly out of the Cubs operation. Instead, every bit of revenue that comes in the door, after expenses are paid, goes into baseball operations. That’s been the mantra since day one, and I believe it. Strictly speaking.

But here’s where the context is necessary. It’s that word “expenses.”

As raised by Scott Boras recently, and as we’ve discussed before, part of the “expense” of owning an MLB team (and RSN and ballpark) these days is paying down the financing that purchased the team (and/or RSN and/or ballpark) in the first place. As that financing is paid down, more of the equity value in owning the team is transferred to the owners (to say nothing of the massive appreciation in the asset(s), themselves). I believe this is how most MLB (or other major sport) teams and owners operate.

So, then, while it is literally true that every dollar that comes into the organization, after expenses, goes into baseball operations, it is not practically true that MLB owners like the Ricketts are not accumulating additional wealth from the effective “profits” of the team. Owning an MLB is still a good business to be in.

Do with that whatever you will from a moral/fandom perspective. As I’ve said, it’s not really something I get too upset about – it’s just the way these large operations are purchased and financed – but I do think it’s important to make sure we’re all on the same page.

So, then, we kinda have to hold multiple things in our heads at the same time. It may well be the case, as Ricketts discusses in the article, that the Cubs entity does not have huge reserves of cash to cover the losses this year, and indeed the Ricketts Family, themselves, probably also don’t have sufficient cash flow emanating out of their business operations (most things remotely attached to the Cubs are going to get crushed this year). More financing and/or selling some equity is probably going to be necessary. But it’s also the case that the many good years that came before this one did ultimately benefit the Ricketts Family, as owners of the Cubs, even if they did not directly put cash profits into their pockets.

What does that mean for how we should think about negotiations with the players and the Cubs’ losses this year? Or about payroll going forward? Again, your mileage may vary. So long as the Cubs continue to spend at or near the top of the market on baseball operations, as they have the last five years, I will have a hard time being too perturbed by any of this. I think the financial disruptions hitting the industry are very real, and very significant. But the players deserve to be treated fairly this year, as do league and team employees.

The extent to which MLB owners “need” to reduce player compensation this year is ultimately at the heart of the sides’ negotiations to get a season underway. From what information I have available, through both public sources and private conversations, I feel confident in what I’ve said all along: (1) yes, it is true that MLB owners will in fact lose significant dollars this year no matter what happens with player compensation, (2) yes, all businesses can seek to reduce losses where possible, but (3) MLB teams are not entitled to $X in profit or revenues in a given year, and if a pandemic means they take a bath, then that’s the nature of ownership.

Read the ESPN piece for much more from Ricketts, including his optimism that a deal will get done to bring baseball back, his thoughts on Boras’s comments, and how he could see a revenue-sharing approach work in a future CBA. Of particular note, Ricketts is adamant that the Cubs do want to see a season played this year. That should be no surprise, given the launch of Marquee, among many other reasons, but it’s pretty important to point out, given the rumors that SOME owners would rather torch this season and save cash, despite the hellacious and obvious long-term risks.

written by

Brett Taylor is the Lead Cubs Writer at Bleacher Nation, and you can find him on Twitter at @BleacherNation and on LinkedIn here. Brett is also the founder of Bleacher Nation, which opened up shop in 2008 as an independent blog about the Chicago Cubs. Later growing to incorporate coverage of other Chicago sports, Bleacher Nation is now one of the largest regional sports blogs on the web.

more cubs news

Wrigley Field is Gonna Be Lit This Year (As in New Colored Lights!)

Last year, the Cubs started using their new LED outfield lights to do a little dancing display during 'Go Cubs Go,' lighting along with the song and throwing in a W. It was very fun and I liked it. This...

The 2024 Chicago Cubs for Dummies

Boom. We made it. The offseason is over, and the Cubs regular season - and those elevated expectations - begins tomorrow. But in case you slept through the winter, I'm here to catch you up on everything you need to...

Why Craig Counsell Wanted Miles Mastrobuoni on the Cubs’ Bench

I don't know why Miles Mastrobuoni bugs some folks, but it's probably heavily-weighted toward his small-sample, bad-batted-ball-luck start last year, and that time he didn't dive while playing in right field. It can be hard to shake initial impressions, I...

Kinda Sounds Like Craig Counsell May Have a Set Top Three in the Batting Order

New Chicago Cubs manager Craig Counsell has said, generally, his batting order philosophy is the very simplistic (and very correct): just get your best hitters the most at bats. Sure, there's some play in that to set up good match-ups,...

Los Angeles Dodgers Signing Will Smith to a TEN-YEAR Extension

The Los Angeles Dodgers have done it again. And by it, I mean they have signed a funkily-structured contract that is going to leave some folks annoyed. The Dodgers are extending catcher Will Smith on a DECADE-long deal with a...

The Stretch: 2024 MLB Season Preview

On Monday, during a team-building conversation with some of the Bleacher Nation and Betsperts Media Group folks, we discussed sports—shocking, I know—and Brian Twining asked the group what their favorite sport was. For me, it's baseball. There's no debate. I...

We Have to Talk About Some of the “Deals” the Cubs Sat Out in Free Agency

This week, in a conversation with Jon Greenberg at The Athletic, Cubs President Jed Hoyer made an honest and sober (but also moderately disappointing) admission about the 2024 Chicago Cubs: "We need to perform probably at or a little bit...

The Chicago Cubs Are Reportedly Now Worth Over $5 Billion

Given all the tumult in the baseball broadcasting world, and the uncertain future for that portion of revenues, you'd be forgiven for expecting that MLB franchise valuations would slow their recent surge. But, according to Sportico at least, you'd be...

Reds Second Baseman Matt McLain Had Shoulder Surgery

The injury to Matt McLain's shoulder issue obviously wound up being worse than he and the Cincinnati Reds had been hoping. The damage to his left (non-throwing) labrum ultimately required surgery: https://twitter.com/m_sheldon/status/1772993402604339478 When the hope is that a guy can...

Cubs Actually Getting a Whole Lot of Votes to Win the NL Central

ESPN dropped its big season preview, and included were a set of divisional predictions by way of their writers, editors, and analysts voting. There's nothing in the way of proof or certainty there, but with 26 voters, I do like...

Latest News

Pac-12 Basketball Predictions, Computer Picks and Best Bets | March 28

There is one game featuring a Pac-12 teams on the Thursday postseason college basketball schedule, the Clemson Tigers versus the Arizona Wildcats. Make sure you check out below for today's best bets!How to Bet on Pac-12 Games[lasso rel="draftkings-promo-1" id="299003"]Best Pac-12...

Rays vs. Blue Jays Prediction: Expert Picks, Odds, Stats & Best Bets – Thursday, March 28, 2024

The Tampa Bay Rays look to start their season with a win as home favorites (-135) in a season-opening matchup with the Toronto Blue Jays. First pitch is on Thursday at 4:10 PM ET on MLB Network, live from Tropicana...

Astros vs. Yankees Prediction: Expert Picks, Odds, Stats & Best Bets – Thursday, March 28, 2024

The Houston Astros look to start their season with a win as home favorites (-156) in a season-opening matchup with the New York Yankees. First pitch is on Thursday at 4:10 PM ET on YES, live from Minute Maid Park.Houston's...

Tigers vs. White Sox Prediction: Expert Picks, Odds, Stats & Best Bets – Thursday, March 28, 2024

The Detroit Tigers begin their season as -181 favorites in a road tilt against the Chicago White Sox on Thursday at 4:10 PM ET, live on BSDET.Tarik Skubal starts for Detroit while Garrett Crochet is Chicago's starter for the contest.Tigers...

Reds vs. Nationals Prediction: Expert Picks, Odds, Stats & Best Bets – Thursday, March 28, 2024

The Cincinnati Reds begin their season as -154 favorites in a home tilt against the Washington Nationals on Thursday at 4:10 PM ET, live on MASN2.Cincinnati's Frankie Montas gets the start, and he'll go against Washington's Josiah Gray.Reds vs. Nationals...

Dodgers vs. Cardinals Prediction: Expert Picks, Odds, Stats & Best Bets – Thursday, March 28, 2024

The Los Angeles Dodgers (1-1) will look to Will Smith, red hot after a four-hit game, to lead them in a matchup with the St. Louis Cardinals (0-0) on Thursday at 4:10 PM ET on BSMW. The Dodgers are -232...

Marlins vs. Pirates Prediction: Expert Picks, Odds, Stats & Best Bets – Thursday, March 28, 2024

The Miami Marlins look to start their season with a win as home favorites (-133) in a season-opening matchup with the Pittsburgh Pirates. First pitch is on Thursday at 4:10 PM ET on Sportsnet PT, live from LoanDepot park.Miami's Jesus...

Padres vs. Giants Prediction: Expert Picks, Odds, Stats & Best Bets – Thursday, March 28, 2024

The San Francisco Giants (0-0) are the underdogs on the moneyline (-106) in Thursday's contest against the San Diego Padres (1-1). Game time is set for 4:10 PM ET on NBCS-BA. The Giants are favored against the spread in this...

Twins vs. Royals Prediction: Expert Picks, Odds, Stats & Best Bets – Thursday, March 28, 2024

The Minnesota Twins look to start their season with a win as road favorites (-122) in a season-opening matchup with the Kansas City Royals. First pitch is on Thursday at 4:10 PM ET on BSN, live from Kauffman Stadium.Pablo Lopez...

Orioles vs. Angels Prediction: Expert Picks, Odds, Stats & Best Bets – Thursday, March 28, 2024

The Baltimore Orioles are moneyline favorites (-192) to begin their season with a home win over the Los Angeles Angels on Thursday at 3:05 PM ET, live on BSW.Baltimore's Corbin Burnes and Los Angeles' Patrick Sandoval have been named the...

more cubs news