By exercising Cole Hamels‘ $20 million contract option, the Cubs payroll is expected to exceed the 2019 luxury-tax threshold.
With their 2019 payroll expected to spike to a franchise-record level, the Cubs are sending left-hander Drew Smyly and his $7 million salary to the Texas Rangers in a trade Friday designed to help offset the $20 million cost of picking up left-hander Cole Hamels’ contract option for ’19.
A source confirmed the move, which was expected to become official later in the day.
The Cubs acquired Hamels from the Rangers in July, along with cash that included $6 million from the Rangers to cover the buyout on the option if the Cubs chose not to exercise it.
This deal recoups that cash while providing the Rangers with a veteran pitcher who returned from Tommy John surgery last season to perform effectively in a brief minor-league rehab assignment.
Smyly with the Rays in 2016, before Tommy John surgery.
Hamels, 34, is a four-time All-Star, who went 4-3 with a 2.36 ERA in 12 starts for the Cubs after the trade.
The Cubs dealt from a position area of depth. Their projected starting rotation for next year includes Hamels, Jon Lester, Kyle Hendricks, Jose Quintana and Yu Darvish.
That’s in addition to sixth-man Mike Montgomery, who performed especially well in an extended run in the rotation last year, and Tyler Chatwood, who figures to be a trade candidate by the end of spring training.
Despite widespread speculation that the Cubs will dive again into the deep end of the free agent market this winter, their projected payroll – calculated for luxury-tax purposes – already exceeds $204 million even after the trade (counting projected salaries of arbitration-eligible players).
That’s before adding pre-arbitration salaries and annual player-benefit obligations.
Next year’s luxury-tax threshold to avoid paying penalties is $206 million.
