It’s a funny situation. When Major League Baseball owners and Major League Baseball players renegotiated the latest collective bargaining agreement between the two sides, they effectively put a limit (not a hard limit, but one with extraordinary penalties if passed) on the amount of money that a team can spend on signing bonuses for newly drafted players. I can’t help but shake the feeling that the MLBPA really didn’t mind making this concession, while the highest ranking executives for the owners would’ve minded quite a bit.
While drafts have come to represent something of a lottery to fans, one in which the results don’t typically become available until years down the road, it represented a place of value to Major League teams smart enough to take advantage of service time rules that permitted the acquisition of talent at a fraction of the cost present in the free agent market.
That’s simply not the case anymore.
Starting this year, each team is told of an amount of money it shall not exceed for signing bonuses given out to draft picks in the first ten rounds (after which, no player can be signed for more than $100,000, unless it comes from the remaining balance of each team’s slot allowance). This amount is based on the team’s position in the draft and the number of picks it has attained in the first ten rounds.
MLB has set a predetermined value for every pick, from $7.2 million for the number one choice to $100,000 for any pick after the 300th. These are the resulting slot allowances, also with the amounts of money that each team spent in the first ten rounds of last year’s draft, as well as the overall amount they spent:
|Team||Picks||Bonus Pool||2011/Top 10||2011/Total|
Information from Baseball America.
Teams that go over slot up to 5% on the draft will face a 75% tax. Teams that go over slot by 5-10% face a 75% tax and the loss of a first rounder. Teams that go over slot by 10-15% face a 100% tax and the loss of a first and second rounder. Teams that exceed slot by 15% or more face a 100% tax and the loss of two first rounders. Teams that don’t exceed their draft spending limit will have a chance to obtain picks from teams that over-spent.
How will this limit on spending affect the draft? There are good guesses out there, but ultimately we don’t know. We’ll have to wait and see how teams react to the new rules, how they might try to acquire the most talent that they can for as cheaply as possible.
This often posted chart weighs heavily with me:
It would seem to me that a smart team would realize the likelihood of the greater majority of value coming from an earlier pick and spending likewise. In other words don’t pinch pennies to be able to afford the player you drafted in the fifth to tenth rounds when the talent is there to be bought in the first five.
However, we’ll have to wait and see how things play out and how team’s order the talent they wish to acquire over the next three days when 1200 players will be selected by Major League teams, starting tonight at 7:00 PM ET.
And The Rest
In case you missed it, Johan Santana threw the first no-hitter in the history of the New York Mets franchise on Friday night. [Getting Blanked]
It was a sad weekend in Toronto, that went far beyond the Blue Jays merely losing two of three against the Boston Red Sox. Third baseman Brett Lawrie was present at a shooting in the city’s largest downtown shopping centre. He informed many of the ultimately fatal incident through his Twitter account. [Getting Blanked]
Edwin Encarnacion is surprisingly alright. [DJF]
What baseball can learn from hockey’s video review war room. [Baseball Nation]
Major League Baseball has officially declared 20 year old Cuban outfielder Jorge Soler a free agent. The last expected big signing before new rules on international free agent signings is implemented in July, Soler must complete a little bit more paper work before he can be signed by a Major League Baseball team. [Baseball America]
There’s a lot of uncertainty for the Boston Red Sox with all of the rumours putting Kevin Youkilis on the trading block. [MLB Trade Rumors]
Bryce Harper’s toughest at bats. [Baseball Prospectus]
New York Mets starter Jon Niese left last night’s game early due to a rapid heart beat, but tests have since indicated that all is well with the pitcher. [New York Times]
The latest from the Rogers Clemens perjury trial. Yawn. [Washington Post]