Thursday, May 12, 2005
Cost Accounting
When you discuss acquiring a guy like Billy Wagner, a guy with an 8 figure price tag, you have to look at budgets. Clearly, the Cubs don't have to have a budget -- the Trib could afford anything they wanted. But stockholders have a tendancy to whine if you drop $44 million on a 3rd baseman with a balky back while circulation fraud is happening at your newspapers.
Looking to 2006, the Cubs are going to be freeing a ton of money. Here's the key list of expenses that they are incurring in 2005 that will likely be eliminated for 2006:
Moises Alou | $2,000,000 |
Joe Borowski | $2,300,000 |
Jeremy Burnitz | $5,000,000 |
Nomar Garciaparra | $8,250,000 |
Mark Grudzielanek | $250,000 |
Jerry Hairston | $1,800,000 |
Mike Remlinger | $3,800,000 |
Sammy Sosa | $16,150,000 |
Todd Walker | $2,500,000 |
Total | $42,050,000 |
Now, you have to account for certain increases in salary for guys who are already signed. They include:
Derrek Lee | $1,000,000 |
Aramis Ramirez | $1,500,000 |
Kerry Wood | $2,500,000 |
Total | $5,000,000 |
In short, the Cubs will have a net clearing of $37,050,000 in salaries. Now, that's before increases to players like Carlos Zambrano and doesn't include incentive bonuses for players like Mark Prior.
But don't take any crap from any source that tries to suggest that the Cubs budget could not handle a Billy Wagner.
Oh, and they clear another $9 million if Maddux doesn't get to 191 innings this year. Currently, Maddux is on pace to vest his $9 million option for 2006.
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