Keeping Costs Low

On the day Jacque Jones was introduced to the local media (which included a live berating of Jones by WSCR's Mike Murphy), all the questions were directed at the future of the Cubs brain trust. Will Jim Hendry and Dusty Baker get contract extensions? Well...

Hendry ... closed the door on questions regarding a contract extension for manager Dusty Baker. "It's not a topic I want to get into now or in spring training," Hendry said. "I haven't given it a thought."

Hendry likely won't discuss an extension for Baker until he gets one himself. Both are in the final years of their contracts, although Hendry is considered a good bet to return, while Baker's future is murkier.

And look who made an appearance:

Cubs president Andy MacPhail said Tuesday he will consider during spring training whether to give general manager Jim Hendry a contract extension before deciding at a later date when to make the expected commitment.

So, why the hemming and hawing? Why the delays? You'd think that Andy MacPhail would be in a hurry to lock in Jim Hendry. After all, if Hendry goes, that would put MacPhail on his fourth general manager, with the preceding three all fired (as opposed to quit/retired). If you are keeping score at home, the three would be Ed Lynch, Andy MacPhail, and Jim Hendry.

Not many bosses can survive replacing three operations managers before the board of directors hires someone else to pick the operations manager. Given that, you'd think Andy would want to lock up Hendry fast and be able to say that he has the right guy. And that would lead Hendry to extend Baker so that Hendry would be able to say that he has the right guy as well.

Let's widen the field of view. Is there any reason Andy MacPhail might want to avoid long term contracts in the Cubs management?

There is one.

There is a circumstance, one that has been discussed in high profile media reports, which would make a strong case for the Cubs not to have huge dollars committed to management.

That would be if the Cubs were sold.

One strategy before selling is to reduce costs and allow a new owner to assume an unburdened asset. Any new owner is going to want to hire his own management team. And that owner is not going to want to be burdened with the cost of eating service contracts for management he doesn't want. Nor would the Tribune look to reduce the selling price for the team because of another $15 million to $25 million committed to a lame duck GM, front office, and field management. Not extending Hendry means not extending Baker which means not having $15 million to $25 million in cost to employees that a new owner will not retain.

With all the reports in Crains and other sources about the Trib looking to divest non-core assets, the actions reported today only further the notion that the real estate at 1060 West Addison is for sale.

And, if the Trib needs a good 1031 Exchange partner, please e-mail me.