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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  • He reminds me of a little of a young guy currently on the Cubs' DL, who is also tank-like in appearance.

    Old and Blue 8 min 52 sec ago view
  • draft signings are trickling in...rounds 6-9 are signed + a random slew of others.

    http://www.baseballamerica.com/draftdb/index.php

    filter by team.

    crunch 8 hours 56 min ago view
  • Former Major League All-Star Jim Hickman dies at 79

    http://www.tennessean.com/story/sports/2016/06/25/...

    QuietMan 9 hours 59 min ago view
  • Yep...sort of. Matheny says Rosenthal will no longer pitch the 9th, and they will mix/match Oh, Siegrist and Broxton.

    billybucks 10 hours 18 min ago view
  • Duane Underwood now 0-5 with a 5.44 ERA for Tenn. Urp. Warren not sharp at Iowa tonight. When will Cease and Hudson be ready?

    On a positive note, Jiminez with his 10th HR tonight. He has a .924 OPS -- the only player in the league with an OPS over .900. Leads the lead in 2B, SLG and OPS, tied for the league lead in HR and 3rd in Avg. Nice!

    billybucks 10 hours 24 min ago view
  • - The pressure of going for the regular-season wins record is now gone.
    - Joe will come up with more wacky dress-up ideas for the team to wear after they lose their next get-away game.
    - There is more clarity on Spencer Patton.
    - We play the Reds next. They aren't very good.
    - We'll have at least a 9 game lead after today.
    EDIT: - Contreras looks like the real deal.

    Other than that, not much -- nasty stretch. Two ugly losses in the last 4 games.
    Ugh -- give Lackey a 4-1 lead, you hope for better.

    billybucks 12 hours 25 min ago view
  • Joe: "We lost. They beat us. Now where's my '09 Guigal Bordeaux glass...?

    The E-Man 13 hours 22 min ago view
  • I forgot how rail thin skinny Carl Edwards Jr. Is - he threw some nasty stuff - hope that continues

    Eric S 13 hours 27 min ago view
  • HAHAHA! I love it here! Brilliant...

    The E-Man 13 hours 30 min ago view
  • "The pressure of going for the regular-season wins record is now gone."

    Brilliant. Maddon is a genius!

    Brick 13 hours 35 min ago view
  • "Drink copiously but responsibly."

    Done and done. Thanks for that.

    Brick 13 hours 36 min ago view
  • Oil Can Boyd now pitching for the Cubs

    Eric S 13 hours 45 min ago view
  • It's a long season. There will be stretches like this. It's Saturday night. Drink copiously but responsibly.

    Jackstraw 13 hours 52 min ago view
  • That valuable RBIGIDP.

    Brick 13 hours 52 min ago view
  • Someone talk me down here.

    Brick 14 hours 6 min ago view
  • I remember AZ PHIL talking about Bour's power during the Hendry era.

    The E-Man 14 hours 33 min ago view