The First-Year Player Draft (or "MLB Rule 4 Draft") is held annually over a three-day period in June. There are 40 rounds (there were 50 rounds prior to 2012), and draft order is based upon the inverse order of winning percentages from the previous season. If the winning percentages of two or more clubs are the same, the club with the lowest winning percentage from the previous season picks first. If two or more clubs are still tied, league standings from two years back (or three years back, four years back, etc) are used to break the tie. Article XX-B Free-Agent Compensation draft picks are scheduled in the Supplemental 1st Round (between the 1st and 2nd round).
Any individual who has not previously signed an MLB or minor league contract, and who is either a resident of a U. S. state or territory or Canada, or who is not a resident but was enrolled in a high school or college in a U. S. state or territory or Canada within the previous year, and:
1. Has graduated from high school; or
2. High school athletic eligibility has expired; or
3. Dropped out of high school at least 365 days prior to the draft; or
4. Attended a junior college the previous school year; or
5. Is attending a four-year college and has completed at least junior year of athletic eligibility, or
6. Is attending a four-year college, has completed at least sophomore year of athletic eligibility, and is age 21 or older (or will turn 21 within 45 days of the draft); or
7. Was dismissed from a four-year college for academic reasons; or
8. Withdrew from a four-year college at least 120 days prior to the draft.
Players selected in the MLB First-Year Player Draft (MLB Rule 4 Draft) are placed on a club's Negotiation List.
In most cases, a player selected by a club in the Rule 4 Draft will remain on the club's Negotiation List until either the player signs, or until 5:00 PM (EDT) on the Friday that falls during the week July 12-18 (whichever comes first), and if a club does not sign a Rule 4 Draft pick by the deadline, the player is removed from the club's Negotiation List and becomes eligible for selection again in the next Rule 4 Draft in which the player would be eligible for selection. The exception to this rule is any college senior with no baseball eligibility left. This class of player remains on the club's Negotiation List until the player signs or until one week prior to the next Rule 4 Draft (whichever comes first).
Also, any player eligible for selection in the Rule 4 Draft who is not drafted ("Non-Drafted Free-Agent" or "NDFA") can sign with any club at any time up until one week prior to the next Rule 4 Draft, unless the NDFA has college baseball eligibility remaining AND is presently enrolled in a junior college or four-year college or enrolls in a junior college or four-year college subsequent to the Rule 4 Draft, in which case the July signing deadline applies.
A player selected in the MLB Rule 4 Draft or a Rule 4 eligible NDFA cannot be signed to a Major League contract.
A club is not permitted to select a player in the Rule 4 Draft two years in a row, unless the player gives his approval in advance.
CUBS NEGOTIATION LIST (updated 6-8-2013):
1. Kris Bryant, 3B (U. of San Diego) - JR
2. Rob Zastryzny, LHP (U. of Missouri) - JR
3. Jacob Hannemann, OF (BYU) - draft-eligible FR
4. Tyler Skulina, RHP (Kent State) - JR
5. Trey Masek, RHP (Texas Tech) - JR
6. Scott Frazier, RHP (Pepperdine) - JR
7. David Garner, RHP (Michigan State) - JR
8. Sam Wilson, LHP (Lamar CC) - JC3
9. Charcer Burks, OF (William B. Travis HS - Richmond, TX) - HS (NOTE: U. of Florida recruit)
10. Zack Godley, RHP (U. of Tennessee) - SR - NO COLLEGE ELIGIBILITY LEFT
11. Jordan Hankins, C (Austin Peay) - JR
12. Trevor Clifton, RHP (Heritage HS - Maryville, TN) - HS (NOTE: U. of Kentucky recruit)
13. Trevor Graham, RHP (Franklin Pierce) - JR
14. Daniel Poncedeleon, RHP (U. of Houston) - JR
15. Michael Wagner, RHP (U. of San Diego) - JR
16. Cael Brockmeyer, C (Cal State - Bakersfield) - JR
17. Kelvin Freeman, 1B (North Carolina A&T) - SR - NO COLLEGE ELIGIBILITY LEFT
18. Giuseppe Papaccio, SS (Seton Hall) - SR - NO COLLEGE ELIGIBILITY LEFT
19. Will Remillard, C (Coastal Carolina) - JR
20. Zak Blair, 2B (Mercyhurst College) - SR-5th - NO COLLEGE ELIGIBILITY LEFT
21. Josh McCauley, RHP (Shepherd U.) - SR - NO COLLEGE ELIGIBILITY LEFT
22. Kevin Brown, LF (Bryant U.) - SR - NO COLLEGE ELIGIBILITY LEFT
23. Tyler Ihrig, LHP (Marin CC) - JC2
24. Tyler Alamo, C (Cypress HS - Cypress, CA) - HS (NOTE: Cal State - Fullerton recruit)
25. Marcus Doi, OF (Mid-Pacific Institute - Honolulu, HI) - HS (NOTE: U. of Hawaii recruit)
26. Carlos Pena, C (Southwest Miami HS - Miami, FL) - HS
27. Tyler Sciacca, 2B (Villanova) - SR - NO COLLEGE ELIGIBILITY LEFT
28. Brad Renner, RHP (Florida State College) - JC2
29. John Garcia, CF (Denbigh HS - Newport News, VA) - HS
30. Zak Hermans, RHP (Princeton) - SR - NO COLLEGE ELIGIBILITY LEFT
31. Sean Johnson, RHP (Iowa Western CC) - JC1
32. Keaton Leach, RHP (Glendale CC) - JC1 (NOTE: Fresno State recruit)
33. Chris Madera, CF (Northwest Florida State College) - JC2
34. Jake Thompson, RHP (Siuslaw HS - Florence, OR) - HS (NOTE: Oregon State recruiit)
35. Ramsey Romano, SS (Valhalla HS - El Cajon, CA) - HS (NOTE: U. of Michigan recruit)
36. Derek Campbell, SS (U. of California) - JR
37. Jeremy Martinez, C (Mater Dei HS - Santa Ana, CA) - HS (NOTE: USC recruit)
38. Zack Brown, RHP (Seymour HS - Seymour, IN) - HS (NOTE: U.of Kentucky recruit)
39. Josh Greene, CF (Forest HS - Ocala, FL) - HS (NOTE: High Point U. recruit)
40. Bubby Riley, LF (Delgado CC) - JC2 (NOTE: NC State recruit)
There is a maximum limit on the aggregate amount of money that each club can pay as signing bonuses to players selected in a First-Year Player Draft (MLB Rule 4 Draft) before penalties begin to accrue.
Prior to the Rule 4 Draft, each MLB club is assigned a “Signing Bonus Pool” (SBP) equal to the aggregate pre-assigned bonus value of all of the club’s draft slots in the first ten rounds (including supplemental draft picks); the higher the slot, the higher the bonus value. (The collective MLB SBP is determined in advance by calculating industry revenues). If a club fails to sign a player selected in the first ten rounds (including supplemental draft picks), the value of that slot is deducted from the club’s SBP. There is no bonus value assigned to draft slots after the 10th round, but if a club pays a signing bonus in excess of $100,000 to a player selected in the 11th round or later or to a player eligible for selection who was not drafted, the amount of that bonus in excess of $100,000 is deducted from the club’s SBP.
If a club exceeds its SBP in a given Rule 4 Draft, a tax will be assessed and future Rule 4 Draft picks could be forfeited, depending on how much the club exceeded its SBP. (The club’s 1st Round draft pick in the next Rule 4 Draft is forfeited if the club exceeds its SBP by 5-10%, its 1st & 2nd round draft picks in the next Rule 4 Draft are forfeited if the club exceeds its SBP by 10-15%, and the club’s 1st Round picks in the next two Rule 4 Drafts are forfeited if the club exceeds its SBP by more than 15%).
Money collected from the tax on clubs that exceed their SBP will be distributed to qualifying clubs as Revenue Sharing funds, and forfeited draft picks will be reassigned by lottery. (Any club that exceeds its SBP is excluded from the lottery).
If a player selected in the 1st or 2nd round of the Rule 4 Draft does not sign, the club receives an extra compensation selection in the next Rule 4 Draft, one slot lower in the 1st or 2nd round than where the club selected the previous season. If a player selected in the 3rd round of the draft does not sign, the club receives an extra compensation selection between the 3rd & 4th rounds in the next Rule 4 Draft. A club would receive another compensation pick in the next Rule 4 Draft after that if a player selected with an extra compensation pick does not sign, but there is no additional compensation pick awarded the following season (three years removed from the original draft pick) if a club is unable to sign that player.
Compensation draft picks awarded to clubs for losing an Article XX-B MLB Free-Agent will be slotted between the 1st and 2nd rounds of the next MLB Rule 4 Draft, with clubs selecting in inverse order of league standings from the previous season. (In the case of two clubs finishing with the same winning percentage the previous season, league standings from two seasons back will be used to break the tie. If the clubs are still tied, league standings from three seasons back, four seasons back, etc, will be used to break the tie). A draft pick awarded to a club for losing an Article XX-B Free-Agent can be used only in the next Rule 4 Draft. There is no further compensation if a player selected with the compensation pick received as the result of losing an Article XX-B Free-Agent does not sign.
Beginning in 2012, six "Competitive Balance" Rule 4 Draft picks will be awarded by lottery between the 1st and 2nd round, and six more will be awarded by lottery between the 2nd and 3rd round. The lottery will take place on the Monday following the Rule 4 Draft signing deadline. Only MLB clubs that receive revenue sharing and clubs from the ten smallest markets will be eligible to participate in the lottery for Competitive Balance picks.
Once awarded, these draft picks can be traded, but only during the MLB regular season, and the pick cannot be traded for cash unless it is a financial adjustment made to offset the salary of one or more of the players involved in the trade. Also, a Competitive Balance draft pick can be traded only once (only by the club that was awarded the pick), and a Competitive Balance Rule 4 Draft pick can be used only in the next Rule 4 Draft. There is no compensation if a player selected with a Competitive Balance draft pick does not sign.
A club could forfeit its 1st round draft pick or its 1st and 2nd rounds draft picks if the club exceeds its pre-assigned Rule 4 Draft SBP limit in a given year or over multiple years. A Rule 4 Draft pick forfeited because a club exceeded its Rule 4 Draft bonus limit will be reassigned to another club by lottery held on the same day as the Competitive Balance draft pick lottery. All MLB clubs that did not exceed its SBP limit are eligible to participate in this lottery.
As with the Competitive Balance draft pick lottery, Rule 4 forfeited draft picks can be traded, but only during the MLB regular season, and the pick cannot be traded for cash unless it is a financial adjustment made to offset the salary of one or more of the players involved in the trade. Also, a forfeited Rule 4 draft pick can be traded only once (only by the club that was awarded the pick), and a forfeited Rule 4 draft pick can be used only in the next Rule 4 Draft. There is no compensation if a player selected with a forfeited Rule 4 draft pick does not sign.
The "International Signing Period" extends from July 2nd through June 15th of the following year.
Any individual who is age 17 or older, has not previously signed an MLB or minor league contract, resides outside the U. S., Canada, and Puerto Rico, and has not been enrolled in a high school or college in the U. S., Canada, or Puerto Rico within the previous year, can be signed during the ""International Signing Period."
Also, a 16-year old international player can be signed if the individual will turn 17 prior to September 1st or prior to the conclusion of the minor league season (whichever comes first).
In addition, a 16-year old international player who otherwise would not be eligible to be signed can be "Signed for Future Service" (that is, signed for the next season) July 2nd through August 31st.
No international player can be signed during the period of time extending from June 16th through July 1st
Beginning in July 2012, there will be a maximum limit on the aggregate amount of money that each club can pay as signing bonuses to international first-year players before penalties begin to accrue.
Each MLB club will initially be assigned an International Signing Bonus Pool (ISBP) of $2.9M the first year, and then beginning in July 2013, each club’s ISBP will be based upon the club’s winning percentage from the previous season. (Clubs that finish with lower winning percentages will receive a larger ISBP than clubs with higher winning percentages, with the ISBP increasing inverse to the previous season’s standings). In the case of two clubs finishing with the same winning percentage the previous season, league standings from two seasons back will be used to break the tie. If the clubs are still tied, league standings from three seasons back, four seasons back, etc, will be used to break the tie.
Beginning in July 2013, a club's ISBP will consist of four separate "signing bonus values" (specific amount of each "signing bonus value" TBD) plus an additional $700,000. An MLB club can trade a "signing bonus value" to another club, but the entire "signing bonus value" must be assigned to the other club when it is traded. A club may not acquire a "signing bonus value" in a trade if the amount is more than 50% above the club's originally assigned ISBP for that year, or if the club has exceeded its ISBP for that year.
A signing bonus paid to a first-year international player age 23 or older who has spent all or part of at least five seasons playing in an MLB-recognized foreign professional or "major" league (all or part of at least three seasons playing in Serie Nacional for Cubans who are age 23 and older) does not count against the club’s ISBP. Also, a club’s six highest signing bonuses of $50,000 or less and ALL signing bonuses of $7,500 or less that are paid to first-year international players will not count against the club’s ISBP. (Beginning in July 2014, only signing bonuses of $10,000 or less that are paid to first-year international players will not count against a club’s ISBP).
The penalty for a club exceeding its ISBP in a given year (July 2 – July 1) is a tax (no draft picks are forfeited) and a restriction on bonuses that can be paid to international players over the next year. (A club that exceeds its ISBP by 5-10% would be permitted to sign only one international first-year player to a bonus of $500K or more, a club that exceeds its ISBP by 10-15% would be prohibited from paying a bonus in excess of $500K to any international first-year player, and a club that exceeds its ISBP by 15%+ is prohibited from paying a bonus in excess of $250K to any international first-year player).
Money collected from the tax on clubs that exceed its ISBP will be distributed to qualifying clubs as Revenue Sharing funds.
A player subject to the ISBP cannot be signed to a Major League contract (same as a player selected in the MLB Rule 4 Draft or NDFA who was eligible for selection in the Rule 4 Draft).
There are two Japanese major leagues, the Pacific League and the Central League. Together they are known as "Nippon Professional Baseball" (or "NPB").
A Japanese player who is not under contract to an NPB club can sign with any MLB club.
A player who is under contract to an NPB club may ask his club for permission to sign with an MLB club anytime during a four-month period extending from November 1st to March 1st. If the NPB club agrees to the request, the player is said to be "posted," and MLB clubs have four business days to decide whether to extend a transfer fee offer to the player's NPB club. The transfer fee offers are delivered to the MLB Commissioner in the form of sealed bids.
Once the auction has been closed, the MLB Commissioner notifies the NPB club whether any bids were received, and if so, the amount of the highest bid, but not the identity of the MLB club that submitted it. The NPB club then has four business days to decide whether to accept the bid. The MLB club that submits the highest bid is the only club that can sign the player, and that's only if the player's NPB club accepts the bid.
If no bids are received, or if bids are received but the NPB club rejects the highest one, the player remains with the NPB club and cannot be posted again until November 1st.
If the NPB club accepts the bid, the MLB club that submitted it is awarded exclusive negotiating rights with the player for 30 days. If the MLB club signs the posted player, the NPB club receives the transfer fee from the MLB club. If the MLB club does not sign the posted player within 30 days, the MLB club retains the transfer fee, and the player cannot be posted again until November 1st.