First-Year Player Draft (MLB Rule 4 Draft) Signing Bonus Pool

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 & compensatory draft picks). The higher the slot, the higher the bonus value. (The collective MLB SBP is determined in advance by calculating industry revenues).

The Cubs 2016 Rule 4 Draft SBP is $2.245,100 (it was $7,236,100 in 2015).

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).

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  • The Cubs have released RHRP Scott Frazier (2013 7th round dfraft pick - Pepperdine).

    A Cubs pitching coach told me in Spring Training 2014 that he thought Frazier had the best pure stuff in the organization. Absolutely electric fastball & breaking ball combo. Other pitchers would gather behind the screen just to watch him throw "live" BP. That's how amazing he was. 

    Arizona Phil 6 min 2 sec ago view
  • Got a chance to see Diamondbacks RHSP Zack Greinke (15-day DL - strained oblique) throw a rehab start at Sloan Park Friday night. Four of the first seven AZL Cubs hitters singled and the Cubs did score an unearned run in the bottom of the 1st inning, but then Greinke got serious and struck out five in a row.

    ZACK GREINKE: 3.0 IP, 4 H, 1 R (0 ER), 0 BB, 5 K, 4/0 GO/AO, 49 pitches (34 strikes)

    Arizona Phil 20 min 20 sec ago view
  • Eloy Jimenez grand slam tonight. Hoping Soler power returns and gets hot but future looks bright in the outfield regardless.

    Eric S 4 hours 31 min ago view
  • Have fun - It may be good for Arrieta to be facing a team that doesn't know him as well as the NL teams. A nice shutout would do wonders for his confidence. He is confident in public but baseball is hard and he could use a boost, I'm sure.

    Old and Blue 5 hours 12 min ago view
  • Me too. I'll be at the game tomorrow and would love to see Good Arrieta.

    Brick 5 hours 36 min ago view
  • Last few games have been the April version of the Cubs that disappeared completely the past two months.
    Hope they can sustain it.

    blockhead25 6 hours 3 min ago view
  • Don't sell yourself short, Judge.

    Jackstraw 6 hours 30 min ago view
  • I love this team.

    Looks like Mother Nature is trying to call this fight.

    Rob Richardson 7 hours 58 min ago view
  • Hey! I remember this team!

    billybucks 8 hours 6 min ago view
  • The key for Heyward's offense: get early leads. Heard a stat on Mike & Mike on the way to work that his avg/power much better this year when the Cubs have the lead. And true to form he gets the two run dinger with Cubs winning 3-0 ...

    Eric S 9 hours 33 min ago view
  • I'm sorry - I was probably not looking at the correct line, or spot, or...who knows!

    I could blame it on the weed, but I stopped smoking many years ago.

    Fortunately, I can rely on the rest of you sober and astute folks to bring the correct info forth.

    The E-Man 10 hours 44 sec ago view
  • Oh yeah! It just felt like one for some reason.

    Old and Blue 11 hours 6 min ago view
  • Agreed. I was not including Fowler or Heyward.

    I'm just not a fan of 2016 Coghlan.....

    Dusty Baylor 11 hours 13 min ago view
  • @Dusty Contreras if it's a Lester or Arrieta start. TLS is good PH too. You also forgot about Heyward, assume Fowler is CF.

    chitownmvp01 11 hours 14 min ago view
  • I expect Soler to get optioned as well when activated and Cahill to replace Grimm. It wouldn't surprise me if Coghlan and/or Soler is included in a trade.

    Maybe Coghlan is up to see if he can get on track before someone acquires him.

    This move could also be to assure that we have as much OF depth as possible to maximize Joe's ability to rest players in September once we've clinched.

    chitownmvp01 11 hours 16 min ago view
  • Maddon basically said as much...Fowler still kind of sore, they're being proactive, etc.

    Tito 11 hours 18 min ago view