The Chicago Cubs have officially surpassed the first tier of MLB’s luxury tax with a reported overage of $2.9 million in 2024. The team had previously suggested this was likely, and it seems their estimates were correct.
To put this into perspective, if the Cubs had not exceeded the threshold, they would have struggled to shed assets at the Trade Deadline due to the relatively small overage. Thankfully, the figure is substantial enough that the Cubs won’t face major repercussions for going over by such a margin.
The implications of this news are multifaceted, with free agency and future penalties being significant factors. The Cubs will need to navigate these consequences, including reduced draft picks and bonus slots, as well as financial penalties in 2025 if they exceed the tax again. However, it’s worth noting that going over the luxury tax just twice might make this a more manageable prospect for the team.
In terms of impact on their roster, the Cubs’ projected better performance this year compared to last means they could benefit from additional supplementation. Despite this, the reality is that these CBA-related costs will begin to bear down on them in 2025, making long-term planning crucial for the front office.
Source: https://www.bleachernation.com/cubs/2024/12/20/officially-official-the-cubs-were-over-the-luxury-tax-in-2024