Tom Ricketts’ comments highlight changing dynamic among MLB owners
Chicago Cubs chairman Tom Ricketts.
Kamil Krzaczynski-Imagn Images
As many well-heeled owners continue to balk at higher payrolls and strive to improve development (emphasizing a desire for more cost-controlled talent), some want us to believe owning an MLB team isn’t necessarily profitable.
This, while conveniently dismissing the fact that many of these franchises appreciate at an impressive rate.
Recent comments by Chicago Cubs owner Tom Ricketts reveal he merely hopes to “break even every year”, and his front office doesn’t have the resources to spend with the Dodgers, Mets and Yankees. Here’s why these types of comments ring empty outside their billionaire coiffures, even though technically he has a point.
To put what we’re about to explore in perspective — and as would be expected, Ricketts’ comments did not go over well within Chicago — one of the largest baseball markets in all of the United States.
And with that in mind, marinate on this: The Tampa Rays have officially outspent the Cubs thus far this offseason. Over the past 20 years, the Rays have averaged 27.4 in yearly MLB team payroll position. Chicago currently sits 12th in payroll at $191M, which is well-below the $237M luxury tax threshold they flirted with last season.
Ken Rosenthal absolutely killing Tom Ricketts and the Cubs for not spending on Alex Bregman pic.twitter.com/WKu0EjfrMv
— Chief (@BarstoolChief) February 18, 2025
It should be mentioned the Cubs have been active, but not via headline-grabbing additions we’ve seen from them in the past, and what the fan base wanted at least one dose of before Opening Day arrives. Even the Athletics may have more expenditures than the Cubs.
Ricketts’ tone of baseball not being profitable enough to justify spending to compete with the usual suspects is a familiar one. Early last season, Yankees owner Hal Steinbrenner said, “I don’t believe I should have a $300 million payroll to win a championship.”
Back in summer 2020, Cardinals owner Bill DeWitt, III — ironically echoing a comment from the same Ricketts — said, “The industry isn’t very profitable, to be honest.”
To this day, those comments still haunt DeWitt III. In the midst of their recent front-office transition, we found out the team had embarrassingly neglected farm, scouting and technology investments.
All this transpired while the DeWitts built a real estate empire adjacent to the stadium. Ballpark Village began phase one in 2014 and followed with phase two in 2017 that included a sprawling 30-story, $260M luxury apartment tower.
What the Ricketts’s and DeWitt’s of the sports ownership world never seem to opine on is the exponential growth of wealth associated with owning these franchises. Yes, they may struggle to turn an operations profit, but these owners are amassing equity wealth—and it’s very real.
Ricketts’ family trust purchased the Cubs in 2009 for $850M, and according to Forbes, the team is now worth a staggering $4.22B.
The DeWitt family bought the St. Louis Cardinals in 1995 for $150M, but later sold two parking garages included in the deal for $50M. Forbes has the Redbirds now valued at $2.55B, and DeWitt’s net worth has soared to over four billion dollars.
If Ricketts is saying he can’t compete with the Dodgers and their billion-dollar TV package, he’s correct; but so is every other owner outside of New York.
Several franchises such as the Red Sox, Giants and Padres have all recently tried to take their foot off the payroll gas. Be that as it may, this is really about a lack of salary constraint and competitive balance that must be addressed by MLB.
Rob Manfred acknowledges baseball has a competitive problem. Too many teams tank. Too many teams don’t spend. Don’t have the resources to spend. Watch. pic.twitter.com/uyU9hUB7fn
— Andrew Fillipponi (@ThePoniExpress) February 16, 2023
If a lack of salary cap has owners to the point they no longer want to pony-up to compete, just say so. But stop bouncing the “P” (profit) word around as you augment extraordinary wealth.
Steve Miller
I’m married and from upstate Missouri. I have a degree in communications. My favorite sports are MLB, PDC Darts and NHRA drag racing, but I maintain an interest in all American leagues
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