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Levine: Cubs' Payroll Is At An All-Time High

By Bruce Levine--

CHICAGO (CBS) -- Cubs ownership has stepped up for its baseball department ahead of the 2016 season. After sitting on lower payroll numbers for six years, the Ricketts family, led by chairman Tom Ricketts and his siblings, has opened up the purse strings.

The result is that president of baseball operations Theo Epstein and general manager Jed Hoyer have committed around $155 million toward the 25-man roster in 2016, once arbitration-eligible players have their salaries settled. That figure could go up, considering the need to add another outfielder and possibly two more pitchers for a World Series run. The Cubs have added outfielder Jason Heyward on an eight-year, $184-million deal, second baseman/utilityman Ben Zobrist on a four-year, $56-million deal and right-hander John Lackey on a two-year, $32-million deal this offseason.

Prior to this year's commitment, the highest Cubs' payroll was around $145 million in 2010. That figure was inflated by former Tribune owner Sam Zell, who wanted the highest price possible before putting the team on the open market.

After the 2006 season, Cubs management was given the green light to spend. Zell reasoned that with a winning club on the field, he would garner close to a billion dollars for the franchise, ballpark land and 20 percent interest in Comcast SportsNet Chicago. Ricketts bought the club in 2009 for a then-record $845 million. The family sold six minority ownership portions to raise $150 million for the ballpark renovation.

Forbes has listed the Cubs at $1.8 billion in total worth. (Zell retained 10 percent of the team.)

After looking at those numbers, spending more money doesn't seem like a big deal for the Cubs going forward. The team is run like a business, and therefore has a budget. With a raise of 10 to 13 percent on ticket prices, the team will realize close to $18 million more, based on three million tickets sold.

The Cubs should be close to selling out in 2016. That would give them close to a record 3.3 million tickets sold. The prices on the suites at the ballpark have all been raised, and they're selling like hot cakes this offseason.

Come 2020, the Cubs' cable television deal should be check in at $4 billion to $5 billion over 20 years. That figure is based on industry comps and the latest deal for the Dodgers, who received upward of $300 million annually for 20 years in a local TV agreement. The Cubs could also start their own network and produce greater revenue, if they so choose.

The combination of good young talent under long-term contract control and the team's projected deep pockets should keep the Cubs viable and competitive at a high level for a long time.

Bruce Levine covers the Cubs and White Sox for 670 The Score and CBSChicago.com. Follow him on Twitter @MLBBruceLevine.

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