Chicago Cubs

Cubs Projected to Lose $199 Million With Prorated Player Salaries: AP

A presentation from MLB projects a $4 billion deficit caused by the coronavirus pandemic.

The Chicago Cubs would take a staggering financial hit if they pay players prorated salaries amid the ongoing coronavirus pandemic, according to a presentation from Major League Baseball that was sent to the players' union and obtained by the Associated Press.

According to the presentation, if owners had to pay players prorated salaries for the coming season, the Cubs would project to have approximately $199 million in local losses before taking interest, taxes and other factors into consideration.

Only the Yankees, Dodgers and Mets would be projected to lose more money than the Cubs, according to the report.

When the league suspended spring training and postponed the start of the regular season in March , MLB and the Players’ Association reached an agreement on a modified salary structure for the 2020 season that included a lump sum up front to cover salaries for the missed time in April and May and prorated salaries for the remainder of the season.

However, a 12-page presentation from the commissioner’s office obtained by the AP dated May 12 explained to players that their prorated salaries would contribute to an average loss of $640,000 for each game of a modified 82-game season played in empty ballparks and would be unfeasible economically.

The owners have sought to institute a revenue-sharing plan with players, evenly splitting revenues for the coming year.

Players have balked at the proposal, saying that a revenue-sharing plan is similar to a salary cap, something the union has long opposed.

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