Crane Kenney Explains Disparity Between Cubs' Revenue, Payroll -

"Much has been made about the Cubs having MLB's third-highest revenue and just the 14th-highest player payroll, a disparity that angered many fans throughout the season. Then there's that oft-cited BrooksGate graphic showing that the Cubs ranked 26th in terms of the percentage of their reported gross revenue dedicated to payroll last season (36.4%). They fell right between Cleveland and Pittsburgh, teams that generated roughly $250 million less than the North Siders."

"This topic has gained steam in light of the recent announcement that Marquee Sports Network has let several employees go in light of financial issues with its digital offerings. Between that and the prospect of a work stoppage in 2027 creating another wave of biblical losses, there is plenty of reason to believe ownership will keep the purse strings relatively tight this winter."

"Let me just say it's really hard to compare one team to another - I mean, I'll get into it as much as you want - but I don't pay a lot of attention to it. There are so many factors, even within the same market, that are different. Let's just start - the revenue line that I see most often is pre-revenue sharing. You guys know how revenue sharing works, but not everybody does. Every team gives about 48% of their revenue to the league, large markets and small, and then the league returns to each of the 30 teams an equal amount. So if you're a large market, you obviously get back less than you put in,"

The Cubs reported MLB's third-highest revenue while carrying only the 14th-highest player payroll. The team ranked 26th in percentage of reported gross revenue devoted to payroll (36.4%), positioned between Cleveland and Pittsburgh despite generating roughly $250 million more. Marquee Sports Network recently cut several employees due to digital financial issues. The prospect of a 2027 work stoppage raises the likelihood of significant losses. Ownership appears inclined to limit offseason spending. Team leadership explained that revenue-sharing requires teams to contribute about 48% of revenue to the league, making large-market clubs net payors and reducing apparent available payroll funds.

Read at Cubsinsider