More CBA goodies

I’m not sure if I’m in the whole “the more I found out, the less I know” area with all of this stuff, but I might be close. But I do have more information on how some of this Collective Bargaining Agreement stuff will work in terms of the Draft. Stay tuned to a series of stories over on MLB.com in the coming days to explain it in more detail, with reaction from people in the industry. For now, some more nuts and bolts:

  • If a Club does not sign a pick, its signing bonus pool is reduced by the amount of the pick.  So, for example, if a Club does not sign its first round pick, and its first round pick had a slot of $1.5 million, the Club’s signing bonus pool would be reduced by $1.5. This is true of any unsigned pick, not just those covered by compensation. The main idea here was to not create incentive for a team to NOT sign a pick. Without this safeguard, a team could “punt” a pick in order to divert those funds to another pick later on, which could result in a Draft that would look a lot like the old ones. In the next year’s draft, the Club would receive a compensation selection for failing to sign its first, second or third round selections, and the slot assigned to the compensation selection will be added to its signing bonus pool.
  • In the new system, the total aggregate pool in the 10 slotted rounds will be $185 million. With an estimate of $20 million spent after the 10th round (remember, bonuses up to $100,000 do not count toward a team’s aggregate pool), that means teams could spend a combined total of $205 million without getting penalized. That total of $205 million is higher than every Draft from 2004-2010.  Spending in past years: $159 million (2006); $155 million (2007); $198 million (2009) and $200 million in 2010.

Some context to consider:

  • Signing bonus inflation since 2006 has certainly impacted teams picking at the top of the Draft. In 2011, 23 players got bonuses higher than what Tim Lincecum got ($2.025 million) as the No. 10 overall pick in 2006. 11 players in 2011 got more than Evan Longoria’s bonus as the No. 3 selection that year ($3 million).
  • Four Clubs that spent the most money in excess of MLB’s slotting recommendations from 2007-2010 were the Nationals (Strasburg, Harper), Tigers, Red Sox and Yankees. That does offset the notion that the small-market/small-revenue clubs have used the Draft system the most, though when you look 2009-2011, the Royals and Pirates climb into that upper group. Still, not quite the slam-dunk people have said it was in terms of the new system hurting the smaller clubs.

First story in in the series on MLB.com will be explaining in detail how this Competitive Balance Lottery will work.

 

4 Comments

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Pingback: MLB CBA: Draft Rules Essentially Amount To A Cap On Each Pick | Pittsburgh PA DIRECTV Service

Ugh. More like: “More CBA Baddies.” What’s the point of a 10-round “pool” if every time you fail to sign a player, the “pool” drops by the slot? Does MLB really think kids (and their agents) are going to regularly sign for less than slot? Because, unless that happens, the whole “pool” concept is a fiction.

Pingback: More Details on that Painful New Collective Bargaining Agreement | Bleacher Nation | Chicago Cubs News, Rumors, and Commentary

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