I believe E Jax is being paid $8m in bonus for 2013 + $11m = $19m. Why prorate his bonus?
For comparison purposes mainly. This is the likely amount reported on the Cubs taxes and used in budgets, the amount the MLPA releases every year, the data used in USA Today's salary database, and other (not all) statistics pages.
WrigleyField 22 wrote:
Prorating is probably what makes sense from an accounting standpoint, but payroll figures are likely much more set by cash flows. Although we've been told the cubs will essentially operate ln a multi-year budget in regards to payroll. So it probably doesn't matter as long as the method is consistent.
Payroll is likely to be impacted by cash flow problems (see Frank McCourt) but that doesn't seem to be an issue for the Cubs. They have stated they will reinvest profits back into the team, so I think revenues is key. Increasing advertising revenues and new local TV revenues (though the big one isn't until 2019). Then it's a question of where they decide to spend it. Expand the front office and scouting; lose a few million a year in players. Spend $300 million on Wrigley renovations, less for player payroll. All necessary, but that will determine player budget. Obama raises taxes, less profits to reinvest (this is dedicated to the Politics thread).