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NEW YORK -- Boston and the Cubs have submitted written arguments to baseball commissioner Bud Selig on what compensation the Red Sox should receive for allowing Theo Epstein to leave for Chicago.

Epstein quit as Boston's general manager in October to become the Cubs' president of baseball operations, and the teams were unable to reach an agreement by themselves on compensation.

Selig has not given any timetable for a decision.

Cubs spokesman Peter Chase and Red Sox spokeswoman Pam Ganley said their teams had no comment.

CHICAGO -- Commissioner Bud Selig will decide what compensation the Boston Red Sox will receive for Theo Epstein's move to the Chicago Cubs.

Epstein left as Boston's general manager with a year left on his contract to become president of baseball operations for the Cubs.

Epstein got a five-year, $18.5 million deal in late October. But the two teams have not been able to agree on compensation, and now it's up to Selig.

Selig said Friday night he'd like to have it done as quickly as possible. He said he gave the clubs more latitude in hopes they'd reach an agreement, but they couldn't. Selig said now it's his decision and that's OK, all part of the job.

BOSTON -- The stalemate between the Chicago Cubs and Red Sox on determining the compensation the Cubs owe the Sox for losing Theo Epstein continues, with Tuesday the deadline for the clubs striking a deal before commissioner Bud Selig intervenes.

“We’ve always felt like that was a possibility,’’ new Red Sox general manager Ben Cherington said of Selig’s potential involvement as arbiter. “It’s a difficult deal to work out. It’s hard to quantify the value of a Theo Epstein. I have an idea of it, and Theo doesn’t think he’s worth as much as I think he is, and we haven’t bridged that gap.’’

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Jim Hendry was always quite fond of the small front office he had created in his decade-plus as general manager of the Chicago Cubs. While other major league organizations were treating their teams like well-oiled 21st-century mega-corporations, Hendry preferred to stick to his old-school ways. That meant Ari Kaplan -- the sole occupant of the statistical analysis department and a recent hire of chairman Tom Ricketts -- and his new-wave approach to statistics often took a back seat when it came to important baseball decisions.

Enter Theo Epstein, formerly GM in the Boston Red Sox front office that housed at least 14 people in their statistical analysis department. Epstein, who was formally introduced as the Cubs new president of baseball operations on Tuesday at Wrigley Field, stressed that there would be a new philosophy and culture in place now that he was running things.

“The easiest way to start to change the culture is in the front office,” Epstein said. “That essentially involves a lot of hard work. It involves setting high standards. It involves coming together around a common vision for the organization and getting everyone to buy in that it’s the most important thing in the world to us. Essentially working so hard that it creates a culture of responsibility, a culture of achievement, a culture of high standards. If you’re not ready to buy into that, you’re probably not going to be along for the ride.”

Epstein will begin that process by bringing in San Diego Padres GM Jed Hoyer and assistant GM Jason McLeod to hold the same titles with the Cubs. Both Hoyer and McLeod were major parts of Epstein’s large front office in Boston. While Epstein seems quite confident in his abilities, he’s well aware that building a team that will continually compete for a playoff spot is something he can’t do on his own.

“That does not happen overnight and that certainly does not happen because of any one person,” Epstein said. “Over time and together we will build a solid foundation that delivers sustained success for the Cubs.”

That solid foundation began to be laid out this past summer, when Epstein said the Cubs caught his eye, as well as many around baseball, during the June amateur draft. Their aggressive strategy and willingness to draft players who would cost well above slot price was one of the first steps in a new direction for the organization.

“We were looking at each other in our draft room and we said, ‘Hey, they get it, they’re going for it,’” Epstein said of what the Cubs did on draft day. “I think that the dollars that we spend in the draft and the dollars we spend internationally are some of the best dollars that we spend in the industry. It was a clear philosophical change in my opinion and a new direction that they’ve taken over the past six months. I think that got my attention and it got everyone’s attention in the game. It certainly aligns well with my vision for how to run a baseball operation, so I’d say it was a significant moment.”

Part of Epstein’s vision is developing a stronger statistical analysis department for the organization. Teams like the Red Sox, Tampa Bay Rays, Texas Rangers, and Oakland Athletics have been at the forefront of building forward-thinking front offices. Over the past decade, while those teams led the way in that area, the Cubs seemingly stagnated.

While stats will invariably be a larger part of this new Cubs era, Epstein was adamant that the old-school shall not be left behind, saying that scouts are an essential part of building a winning organization.

“You can look at each of those paradigms as a lens to view the players,” Epstein said about mixing scouting and stats. “If you hire the best scouts, put them in a position to see the player at the right time and get good solid accurate scouting reports, you see the player through a strong traditional scouting lens. If you hire the best analysts, get the most accurate data, make the best adjustments, do the most thorough analysis and you come out with the best available statistical information, that’s another lens to which to view the player. The way to see the player most accurately, to get the truest picture of the player, is to put both those lenses together and look through them simultaneously and you get a pretty darn accurate picture of the player. That’s the approach we used with the Red Sox and I’d like to do that same here with the Cubs.”

Much had been made of the computer named ‘Carmine’ that Epstein and his Red Sox cronies used in Boston. Many made it seem as though all of Epstein’s decisions were coming down to what Carmine had to say and that the Red Sox front office was a slave to a computer. Epstein, however, strongly disagreed with that notion.

“Way too much has been made of that,” Epstein said of his rumored reliance on Carmine. “We developed in Boston a program that was essentially an information management system. Every team in baseball has an information management system of some form or another. Every business of a certain size has an information management system that they use to gather their information, consolidate it, analyze it, dig deep and use it as a resource to balance certain variables and not make decisions, but inform decisions that the company eventually has to make.”

In his ten years with the Red Sox, Epstein not only proved himself to the traditional baseball lifer, but he has clearly become a darling in the sabermetric community. After meeting the media in Chicago Tuesday morning, it was easy to see why. A common misconception is that sabermetricians only care about the numbers, but the smart ones know that intelligently applying statistics is only one aspect of analyzing the game and building a strong organization. Epstein undoubtedly falls into the ‘smart ones’ category.

Along with espousing statistics, Epstein also insisted that the Cubs ‘build the best scouting department in the game' and continue last summer's trend of investing in the draft. He pledged to 'dig deep' as the team searched for the next great competitive advantage that would move the Cubs in a direction to join the elite. He pointed out the Cubs’ lack of fundamentals last season and their atrocious defense as things that must improve immediately if they plan on winning in the near future.

“Run prevention as a whole, pitching and defense is essential if you’re going to have a winning club,” Epstein said, before going on to describe a new system that he referred to as the 'Cubs Way'. “(It) touches on all aspects of the game. There will be a player development manual with the appropriate way to play defense at every position and expectations we have, not just offensively, but defensively. Once we build this foundation, that ‘Cubs’ Way’ will be integrated vertically so we’ll be playing the same way at the Dominican Summer League (all the way up to) the big league level.”

Another lesson Epstein has learned along the way is that when paying for free agents, it’s essential that the money is spent on future performance, not past. It was something that Hendry often failed to do and likely led to his ultimate demise. Epstein is hardly immune to getting burned in the free-agent market, doling out large, bad deals to the likes of John Lackey, Edgar Renteria, and Julio Lugo. However, Epstein clearly has acknowledged the issue and seems to have pinpointed a simple plan of action to avoid such deals in the future.

“I think baseball players have a prime age, there’s an age range, starting somewhere around 26-27 and ending somewhere around 31-32 in which you get the best bang for your buck with the player,” Epstein pointed out. “If we do our jobs the right way, we’ll have as many players in their primes, hopefully home-grown, impact-type players who are moving into and still in their prime years. That’s the best formula to building a winning baseball club.”

None of these statements assures that Epstein will avoid any pitfalls along the way. He’s likely to make mistakes as he attempts to build the North Siders back to respectability. But one thing is clear, Cubs’ fans have to be excited about the brain trust that Epstein is already putting together.

No, a World Series victory isn’t going to fall into this team’s lap. Nothing is guaranteed, except that the process towards putting a quality team on the field will be more efficient, progressive, and well-thought-out than it was under previous regimes.

Theo Epstein joins "Pardon The Interruption" to talk about his new role with the Cubs.

ESPNChicago's Marc Silverman is so excited about the Cubs' hiring of Theo Epstein that he does cartwheels down State Street in Chicago.

CHICAGO -- Multiple high-ranking, totally trustworthy Major League sources confirmed Tuesday that Theo Epstein is the new President of Baseball Operations for the Chicago Cubs.

“I’ve waited a few weeks to say this, but it truly feels great to be a Cub today,” said a source close to Epstein.

Oh wait, that was Epstein. He actually said those words to begin his introductory press conference at Wrigley Field.

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CHICAGO -- New Chicago Cubs president of baseball operations Theo Epstein said Tuesday he plans to meet in person with manager Mike Quade, whose future appears uncertain after a disappointing 2011 season resulted in a front-office shakeup.

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CHICAGO -- Chicago Cubs chairman Tom Ricketts introduced former Boston Red Sox general manager Theo Epstein as president of baseball operations during a news conference Tuesday at Wrigley Field.

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CHICAGO -- On his way out of town, Theo Epstein published a very classy thank-you letter to the rabid Boston Red Sox fans in the Boston Globe. He addressed it to "Red Sox Nation."

So that's how I'll begin yet another column/blog post/diary entry advising Epstein on how to handle his new life as President of Being an Awesome Baseball Genius for the Chicago Cubs. There is no Cubs Nation, no Cubbie Exceptionalism.

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At 41, Andy MacPhail was four years older than Theo Epstein when he came to Chicago to run the Cubs in the fall of 1994, but he too was every bit the baseball prodigy.

Like Epstein, MacPhail, a member of baseball's young elite, already had two World Series titles on his resume. MacPhail was also the last executive traded in baseball, arriving in Chicago in exchange for a Class A pitcher sent to Minnesota in compensation for the much-heralded hire by the Cubs.

"There were similarities," MacPhail agreed about him and Epstein, "but it was a different kettle of fish."

He was referring to the fact that when he left the Twins, he was on good terms with owner Carl Pohlad, happy in Minnesota, and left (he walked away from an offer of $4 million and part-ownership of the Twins) only after promising it would not be for the same job.

But there is something else, MacPhail said, that will be different for Epstein.

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Now that Theo Epstein has been announced as president of baseball operations (and with Jed Hoyer expected to join him as GM), here's a list of five must-dos for the new Chicago Cubs brass coming out of the chute:

1. Solidify front office: Epstein has been working on his group of underbosses for the past 10 days. With the help of chairman Tom Ricketts, he is in position to bring in Hoyer as his general manager. The Cubs might have to fancy up Hoyer's job title, which is Executive Vice President and General Manager with the Padres, for the job description. Padres assistant GM Jason McLeod will follow Hoyer to Chicago. Epstein is reportedly trying to bring Red Sox vice president of baseball operations Brian O'Halloran with him to Chicago. Epstein must make decisions on the current group of front office people he inherits. Interim GM Randy Bush and scouting director Tim Wilken each have one year remaining on their contracts. Vice president of player personnel Oneri Fleita was given a four-year extension at the end of the 2011 season. Others on the staff such as director of baseball operations Scott Nelson and manager of baseball information Chuck Wasserstrum have been with the Cubs for over 25 years. Paul Weaver directs international scouting for the team. This is a solid group that Epstein will have to decide how to use. But his main guys are firmly in place.

2. Decide on manager/coaches: Mike Quade has a year remaining on his deal for $1 million. Theo and Co. if must decide if looking past Quade is the way to go. Rumors have had Terry Francona and Ryne Sandberg in the mix as possible replacements. Sandberg's name got out there because Epstein tried to hire him as his Triple-A manager before the 2011 season. A quick decision on Quade and his coaches would be the logical and fair thing to do for the group. Hitting coach Rudy Jaramillo, bench coach Pat Listach and bullpen coach Lester Strode have one year remaining on their deals. Jaramillo, making $875,000, is the second-highest paid coach in baseball (Cardinals pitching coach Dave Duncan makes more than $1 million). Pitching coach Mark Riggins, first base coach Bob Dernier and third base coach Ivan DeJesus are unsigned for 2012.

3. Trade off the vets: Epstein and Co. must put their efforts toward trading troubled pitcher Carlos Zambrano and outfielder Alfonso Soriano. Zambrano should be easier to move than most think. He walked out on the team Aug. 12 and did not return in 2011. Although teams will be concerned with his fiery temperament and loss of focus, the 31-year-old Zambrano pitched without injury in 2011. Teams are always looking for starting pitching depth, and Zambrano at a discounted price from the $18 million the Cubs owe him will be attractive to teams after the winter meetings. Many sources say the Miami Marlins will come calling for Zambrano. Soriano closed out the season with 26 homers and 88 RBIs. The best spot Epstein can find for the 36-year-old Soriano will be with an American League team as a designated hitter. The Cubs will have to pay a large chunk of the $54 million still owed to Soriano over the next three seasons.

4. Address the starting pitching problem: Ace Matt Garza is under contract control for two more years. Epstein and Hoyer must talk to Ryan Dempster and his agent Craig Landis immediately to find out if Dempster is interested in picking up his $14 million player option. Although Dempster's record wasn't very pretty (10-14, 4.80), he can be an asset to Epstein. Dempster threw 200 innings-plus for the fourth straight season. Although he was 0-6 with three no-decisions in his last nine starts, seven of them were quality starts. The rest is up for grabs. Randy Wells, Andrew Cashner, Jeff Samardzija and Casey Coleman are some of the same choices the Cubs had in 2011. The Cubs will have to work hard on signing free agents and making trades. Top free agent C.J. Wilson will be asking for more than $100 million when he hits the market. Trades are going to be the only way they improve their starting pitching.

5. Improve the worst defense in baseball: The Cubs made 134 errors in 2011, by far the most in baseball. Although the Cubs had good infielders, their defense must be improved. First baseman Carlos Pena saved 50 bad throws which he converted to outs, according to ESPN Stats & Info. That number led all of baseball in outs saved. Shortstop Starlin Castro has improved defensively, but his 29 errors led all shortstops. Fourteen errors by third baseman Aramis Ramirez and 12 by catcher Geovany Soto were also NL-highs in errors at those positions. Outfield defense was not much better. Centerfielder Marlon Byrd's hustle made up for a lot of plays he wouldn't normally make. Soriano's play in left field is well-documented. The Cubs were not much better in right field after Kosuke Fukudome was traded to the Cleveland Indians.

Theo and Co., roll up your sleeves and make the same magic happen as in Boston. If you can pull it off, Mayor Emanuel will be naming the streets after you.

The worst-kept secret in baseball is finally, officially out in the open. The Boston Red Sox and Chicago Cubs issued a joint statement Friday night announcing that Theo Epstein has resigned from his post as Boston's general manager to become the Cubs' president of baseball operations.

The move is "effective immediately," according to the statement, although the teams won't hold news conferences until Tuesday, the next off day in the World Series, when the Cubs will presumably introduce Epstein in Chicago, while Red Sox assistant GM Ben Cherington is expected to be named Epstein's successor in Boston.

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The Theo Epstein saga dragged into Friday with conflicting information on the status of talks between the Boston Red Sox and Chicago Cubs.

Sources told ESPNChicago.com Thursday that the sides were finalizing a deal that would make Epstein the Cubs' president of baseball operations. A Red Sox team source told ESPNBoston.com that as of Friday morning, though, compensation for Epstein is still not resolved and there is no timetable on when it might be.

Theo Epstein hasn't even officially begun running the Cubs yet, let alone set up a suggestion box. But this can't wait. At the top of Epstein's to-do list, even before banning in-game beers and fried chicken in the clubhouse, you know what Epstein has to scribble in, right? By the end of this World Series, he has to know every little thing about Albert Pujols, from his favorite at-bat music to what question could've ruined his perfect score on his 2007 U.S. citizenship test. And Epstein has to learn every last detail about Tony La Russa, too, down to whether La Russa's devoted animal-rights activism makes him for or against the catch-and-release of the Rally Squirrel from Busch Stadium to a nice leafy spot somewhere upstate.

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