Cubs Offers to Steele & Assad Expose Financial Strategy: Investing in Pitching Core While Saving for Big Swings.vc
CHICAGO, IL – The Chicago Cubs’ offseason took a revealing turn when the club made their tender decisions on arbitration-eligible players. While the moves to tender contracts to pitchers Justin Steele and Javier Assad appeared routine, the underlying financial calculus has become a crucial window into the front office’s long-term budget strategy for 2026 and beyond.
What looked like standard negotiations suddenly exposed a careful financial balance: preserving the rising pitching core while maintaining the flexibility required to chase major free-agent talent in the coming years.
Investing in the Pitching Core
The contracts tendered to Steele and Assad demonstrate the Cubs’ willingness to commit valuable payroll dollars to internal pitching development, even in the face of uncertainty.
- Justin Steele: Stability at the Top. Steele, the Cubs’ one-time ace, is expected to miss a significant portion of the 2026 season while recovering from elbow surgery (not Tommy John). By tendering him a contract—projected to be around $6.55 million—the Cubs make a clear investment in his long-term recovery and value. Steele represents stability at the top of the rotation once he returns, and the team is prioritizing retaining him through his arbitration years rather than non-tendering and saving money in the short term.
- Javier Assad: Valuable Versatility. Assad, projected for a modest $1.9 million salary, brings invaluable versatility. The right-hander has proven to be a reliable depth starter and a capable long reliever, and he retains minor-league options—a significant asset for roster management. Securing Assad at a combined projected cost of roughly $8.45 million for both pitchers is a low-risk, high-reward move for the pitching staff.
The Clear Message: Flexibility for Future Swings
For fans eager for a championship contender, these negotiations say more than the numbers on the table. By non-tendering other arbitration-eligible players like catcher Reese McGuire and pitcher Eli Morgan, the Cubs signaled a commitment to efficiency and flexibility.
The front office is carefully mapping its payroll:
- Low Payroll Floor: After accounting for the tenders and the acceptance of Shota Imanaga’s qualifying offer, the Cubs’ active payroll remains well below the initial Competitive Balance Tax (CBT) threshold (projected near $170 million).
- Future Flexibility: With several large veteran contracts set to expire after the 2026 season, the Cubs are preserving enough financial capital and non-taxed payroll space to avoid boxing itself out of future big swings on high-impact free agents or massive trade acquisitions.
The message is clear: Chicago plans to invest smartly in its homegrown pitching core but will keep its financial powder dry for the right opportunity. The careful management of the Steele and Assad negotiations has revealed the blueprint for the Cubs’ competitive window.
