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Chicago Cubs Barely Avoid 2018 Luxury Tax

The Chicago Cubs may have had one of baseball’s highest payrolls during the 2018 season, but according to new data, they were barely able to slip under the luxury tax threshold.

According to the Associated Press, the Cubs had the fifth-highest payroll in all of baseball, shelling out just over $193.3 million in salaries during the season. That figure includes the team’s entire 40-man roster, the average annual value of contracts, and other benefits, unemployment, and worker’s compensation figures, among others.

The luxury tax in 2018 was assessed on payrolls over $197 million, and only two teams were forced to pay it, as the World Series champion Boston Red Sox and the Washington Nationals were over the threshold.

According to the AP, the Red Sox, will have to pay 20 percent tax on their salary between $197 and $217 million, 32 percent on the salary between $217 and $237 million, and a staggering 62.5 percent on salaries above $237 million.

The Red Sox will also incur a penalty in the MLB Draft for exceeding the tax.

For those curious, the Cubs were well ahead of their next-closest divisional rival, as the St. Louis Cardinals shelled out $175.7 million in salaries.

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