IF MY READING OF THE RULES IS EVEN CLOSE TO CORRECT, IT APPEARS THAT IT WILL TAKE $80 MILLION OR MORE TO ASSIGN YOAN MONCADA TO A MINOR LEAGUE TEAM

I spent some insomniac time researching the international signing bonus “pools” and “slots”–the system mlb and the union have devised to regulate the int’l market for young players until they figure out how to build an extraterritorial draft (or until they figure out a better provisional non-draft system–because this one sucks).  Teams get ranked by record, as in the regular draft, so that the recent winners like the a’s and Giants have less money in their “pool” to pay for signings.  (Teams get sliding-scale “slot” money too, which they can “trade.” Someone else can track that down.)

Anyway, the top “pool,” for Houston or some team like that, was slightly over $5M last year.  “Slot” amounts are lower, so you’re looking at less than $10M max, I guess. There’s a penalty, or tax, imposed if a team blows by its pool amount.  So, not being able to sign 19-year old Yoan Moncada to a major league contract under the new system, a team will need to pay him a $40M (est.) “signing bonus.” That team, apparently, then would have to pay as much as a 100% penalty.  Here’s what I think is the strange part–the tax money goes into an ancillary mlb fund used to develop international operations. Nobody expected that fund to grow large, so it’s not clear what mlb will do with the $40M Moncada windfall.

BaseballAmerica and Fangraphs both have a bunch of detailed articles on this stuff.  I haven’t sorted out how the US government’s relaxed approach to Cuban players (announced last week, I believe) further throws the signing-bonus system out of balance.

$80M–for a 19 year old?  Perhaps there’s a silver lining: maybe after signing he’ll get no more than the mlb minimum $1/2M in salary for a few years, keeping the lucky team under the entirely separate luxury tax cap.  But that’s a guess.

I welcome additional scholarship on these issues.  (This effort cured my insomnia.)

Advertisements
This entry was posted in Uncategorized. Bookmark the permalink.

5 Responses to IF MY READING OF THE RULES IS EVEN CLOSE TO CORRECT, IT APPEARS THAT IT WILL TAKE $80 MILLION OR MORE TO ASSIGN YOAN MONCADA TO A MINOR LEAGUE TEAM

  1. shoelessinbearvalley says:

    As our resident uber-neophyte on the subject of the “International Bonus Pool” and the kind of “100 percent” signing penalties that the Giants, for example, would incur, I respectfully plead guilty for having gone to bed last night at 10:19 after a harrowing day of rescuing my car from a washed out road created by the deluge of rain from the night before.

    I recommend that SandyKoufax aka LADodgerFan take a stab at this kind of somnambulistic but otherwise wholly laudable Late Night with Craig-xoot-Ferguson topic.

  2. shoelessinbearvalley says:

    Well, xoot, it looks like your insomnia is only bettered by an extremely sleepy JDR right now. No matter, thank you for continuing to provide suggested topics open for still more hopeful discussion. After all, Spring Training countdown is now down to 2 days. 🙂

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s