Episode Summary: Welcome to episode two of The Signs, a new podcast where I dive into interesting numbers, trends, and plays related to the Chicago Cubs. I'm your host, Mike Waller, and today I'm breaking down the Competitive Balance Tax (CBT) and how it affects the Cubs' spending decisions.

Key Points Discussed:

1. Introduction to the Competitive Balance Tax (CBT):

• I explain what the CBT is, how it's calculated, and why it matters to the Cubs and other MLB teams. Contrary to popular belief, the CBT is not a salary cap, but it does influence how teams like the Cubs manage their payroll.

1. CBT and the Cubs’ Payroll:

• I discuss Jed Hoyer's recent comments about the Cubs potentially exceeding the CBT threshold this year. I break down what this means for the team's financial strategy and how it aligns with their performance on the field.

1. The Cubs' Payroll History:

• A look back at the Cubs' payroll and CBT history since Tom Ricketts bought the team. I cover how the Cubs have approached spending in recent years, including the challenges they've faced with retained salaries and guaranteed contracts.

1. Impact of Retained Salaries:

• I delve into the specifics of retained salaries and how they’ve impacted the Cubs' ability to stay under the CBT threshold. I highlight the inefficiencies in spending, such as the costs associated with players like Trey Mancini, Jan Gomes, and Tucker Barnhart.

1. Future Spending and the Cubs' Strategy:

• Looking ahead to 2025, I discuss the Cubs' future payroll commitments and the potential strategies they might employ to stay competitive while managing their CBT obligations. I also touch on the possibility of big-name signings like Juan Soto and how that could impact the team's financial strategy.

1. My Take on the Cubs' Spending:

• I share my personal thoughts on the Cubs' spending habits, the importance of efficient budgeting, and the need for the team to make smart financial decisions that align with their goals of returning to playoff contention.

Conclusion: In this episode, I explored the intricacies of the CBT and how it shapes the Cubs' financial decisions. Whether the Cubs go over the threshold this year or not, what matters most is how they spend in the years to come to build a winning team for the fans. Thanks for tuning in, and as always, Go Cubs!

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