You Can't Win If You Don't Play

UPDATE: The MLB Rule 4 Draft Competitive Balance Lottery has been postponed until Wednesday 7-18.


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The Rule 4 Competitive Balance and Forfeited Draft Pick lotteries will be held next Monday, and while it does not appear that any MLB club will be forfeiting a 1st round pick as the result of exceeding its Signing Bonus Pool by 5%+ (although it could  still happen), 12 MLB clubs will definitely be awarded Competitive Balance draft picks in next June's Rule 4 Draft (First-Year Player Draft).



At stake in the lottery are six draft picks between the 1st and 2nd rounds and six more between the 2nd and 3rd rounds.


The six Competitive Balance lottery picks between the 1st and 2nd rounds will be slotted immediately after any Article XX-B Compensation picks awarded to teams who lose an MLB Article XX-B free-agent post-2012 after extending a "Qualifying Offer" to the player.


NOTE: A "Qualifying Offer" is a one-year guaranteed contract with a salary at least equal to the average salary of the 125 highest MLB aalaries from the previous season. This is the mechanism negotiated in the new CBA that replaces clubs offering salary arbitration to Type "A" and Type "B" free-agents in order to receive compensatory draft pick(s) should the player sign with snother club. 


The six Competitive Balance lottery picks between the 2nd and 3rd rounds will be slotted immediately after the 30th pick of the 2nd round.


Only MLB clubs that are in the bottom ten smallest-markets and MLB clubs that receive revenue sharing are eligible to participate in the Competitive Balance Lottery, and no team can be awarded more than one Competitive Balance draft pick in a given season. 


Competitive Balance draft picks can be traded beginning next Tuesday (the day after the lottery) up through the last day of the 2012 MLB regular season, and then again beginning on MLB Opening Day 2013 up until next June's Rule 4 Draft. (The draft picks cannot be traded during the off-season).


Also, a Competitive Balance draft pick can be traded only once (by the team to which it was awarded), so it can't be flipped to a third team later, and the pick cannot be sold for cash. If the pick is traded, it must be exchanged for a player or player(s).


There are 13 MLB clubs that qualify to participate in this year's Competitive Balance Lottery (most of the teams qualify because they both are a small market team and because they receive revenue sharng):


AZ, BAL, CIN, CLE, COL, KC, MIA, MIL, OAK, PIT, SD, STL, and TB.


Some of the teams that will be receiving Competitive Balance draft picks next Monday are contenders (one is even in 1st place in its division) and are expected to be "buyers" as the trade deadline nears, so don't be surprised if the Cardinals, Pirates, Rays, Reds, Orioles, Diamondbacks, and/or Indians trade their Competitive Balance draft pick before the July 31 trade deadline.


It could be that some of the teams looking to move assets (like the Cubs, for instance) are waiting for the Competitive Balance picks to be awarded before makng trades, since a Competitive Balance draft pick (especially one between the 1st and 2nd rounds) could actually have more value to a seller than the prospects being made available by the buyer.


If it turns out there are any forfeited lottery draft picks as the result of a club or clubs exceeding its 2012 Rule 4 Signing Bonus Pool by more than 5%, all MLB clubs will be eligible to participate in the lottery to receive the forfeited pick, except for those clubs that exeeded their assigned SBP (as the Cubs did when they signed 1st round pick Albert Almora).  


The Competitive Balance lottery will be weighted in favor of those clubs that finished with the worst records in the 2011 season, and the Forfeited Draft Pick lottery is weighted in favor of teams receiving revenue sharing.

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Comments

As always Phil-thanks for educating us about things many of us didn't know.

Friday is the deadline for signing players selected in last month's First-Year Player Draft (Rule 4 Draft) as wells as the deadline for signing players who were eligible for selection in the draft but were not drafted (NDFA).

The Cubs have signed their top 18 picks, plus nine more players selected in rounds 21-40, and three Non-Drafted Free-Agents (NDFA).

Any bonus amount in excess of $100,000 given to a player selected below Round 10 or to a Rule 4 eligible NDFA is deducted from the club's Rule 4 Signing Bonus Pool, so don't expect the Cubs to give more than $100,000 to any of their unsigned draft picks (should any more be signed).

Although the deadline for signing Rule 4 Draft picks is this Friday, there is an important exception to the rule.

Unsigned college seniors with no college eligibility left can be signed at any time up until one week prior to next year's draft, so Cubs 2012 29th round pick RHP Austin Pentecost (Lewis-Clark State) will remain on the Cubs Negotiation List (with the Cubs retaining exclusive negotiation rights to Pentecost) until that time.

Also, any college senior with no eligibility left who was not drafted in last month's draft can be signed as a NDFA up until one week prior to next year's draft.

Wonder when they will promote Tim Saunders. 500+ BA can't be all luck.

from the "i never cared in the first place" department:

AAA black hole of lost hope mike macdougal has been released...he's looking "done."

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  • Reds pitching meeting tomorrow:

    "Hey coach...maybe we should walk Bryant?"
    "No...keep challenging him with fastballs! What kind of man are you?! The Cubs walked Harper, and look what happened there! They got teased for it, by one of the Nat players! Is that what you want?"

    billybucks 7 hours 54 min ago view
  • How can I get that feature? I think it woudl be a win-win for all involved.

    billybucks 7 hours 58 min ago view
  • Ian Happ is hitting.733 after 5 games at Tennessee. He went into tonight's game hitting .667 -- and went 3-for-3 to raise his average.

    2-for-3, including a bomb, for LaStella at Iowa. Pierce Johnson very bad -- 2IP, 5ER. Pitching prospects not looking so hot -- Underwood has been awful.

    Did Jiminez get hurt? I noticed he came out early yesterday.

    billybucks 8 hours 46 min ago view
  • Contreras keeps hitting/walking like this, and Miggy keep up the poor D and lack of offense - the kid could be the #1 catcher very soon.

    billybucks 8 hours 52 min ago view
  • it doesn't hurt that the Cardinals lose the KC and the Pirates lost too.

    Cubster 8 hours 52 min ago view
  • ...still trying to process what I just saw. From both KB and Jake. Walking Billy Hamilton twice is a cry for help. I think the nudie photos are messing with Jake's head.

    billybucks 8 hours 55 min ago view
  • Hopefully Peralta's time on the Cubs roster will be shorter than R. Soriano's.

    Cubster 9 hours 11 min ago view
  • it took 9 pitches for peralta to give up his 1st cubs homer. neat.

    crunch 9 hours 16 min ago view
  • damn...totally missed that ruben quevedo died on june 7th. he was only 37...heart attack.

    he threw some really horrible games for the cubs in 2000 and followed it up by doing the same for 3 season for the brewers.

    crunch 9 hours 23 min ago view
  • Holy Kris Bryant what?!

    Ryno 9 hours 25 min ago view
  • Hitting 3 HR, 2 doubles in a game. Never been done in mlb history per Len/Bob.

    Cubster 9 hours 36 min ago view
  • walks? this is baseball, not a nature hike. he needs to get his head in the game.

    in my opinion, he would have been better off hitting 2 homers rather than walking twice. /moneyballs

    crunch 9 hours 39 min ago view
  • Rizzo: 2-3, homer, double, 2 walks - meh

    Eric S 9 hours 42 min ago view
  • in other news, the site seems to be eating about 50% of my comments...which is probably a good thing in hindsight.

    Rob G. 9 hours 44 min ago view
  • The Tucker Barnhart reactions after each Kris Bryant HR are kind of priceless.

    Rob G. 9 hours 47 min ago view
  • ...but, he's also good at home runs, too.

    also, rizzo.

    crunch 9 hours 51 min ago view