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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  • Maybe they have a bad owner, I don't know, but they still have players and fans and a franchise, all devastated by this loss of life. Plus, everybody who follows baseball is a fan of a guy like this. It's why I used the word tragedy, which other people throw around but I try to be careful with.

    I'm at an age where I remember old incidents better than recent ones, but I have to go back to Herb Score for something as disturbing.

    VirginiaPhil 8 min 59 sec ago view
  • That was Dee Gordon's only HR this year. Wow.

    billybucks 10 min 52 sec ago view
  • Thank you PHIL.

    Glad you avoided temps in the 100s.

    I remember you mentioning Dewees needng plenty of work in th IF. How are his OF instincts?

    Also, did see much of Satchel McElroy? Only Satchel I have heard about other than the "orignal" and one of Woody Allen's kids.

    The E-Man 2 hours 56 min ago view
  • Hate to give the Mets credit, but they did everything right tonight in what had to be a very tough game for them to play. As Hollandsworth said on the Cubs post-game -- if you watched the game, you saw Mets players consoling Marlins players who were in tears during the game. Between that and the way Molina handled the Ross farewell -- maybe the Mets and Cardinal players aren't pure evil. Just the fans.

    billybucks 10 hours 27 min ago view
  • New York Mets @Mets
    Dee Gordon lead-off home run. #AintEvenMad #BiggerThanBaseball 1-0 Miami.
    7:25 PM - 26 Sep 2016

    https://twitter.com/Mets/status/780548827963133953

    crunch 11 hours 4 min ago view
  • Amazing effort by Gordon -- truly remarkable.

    billybucks 11 hours 26 min ago view
  • Cubs get 100, KB gets 100, Hendricks gets below 2.00, Cards get absolutely destroyed by the Reds -- all good, other than some Rondon concern. Hopefully, he can get a few outings in this week and find his groove. Also, I guess Soler is still struggling with his right side. Hmmmm. Too bad Joe didn't let Addy bat with the bases loaded in the 7th -- great RBI opportunity.

    I assume all the relievers are on a set schedule this week, but it seems strange Chapman pitched back-to-back.

    billybucks 11 hours 28 min ago view
  • Barry Rozner article interviewing Greg Maddux (with comments on Kyle Hendricks).

    http://www.dailyherald.com/article/20160925/sports...

    "I like watching him pitch," Maddux said of Hendricks. "I like guys that rely on movement and location. I can relate to him. That's what I had to do. "I'd rather watch him pitch than some lefty throwing 95 mph."

    Cubster 11 hours 49 min ago view
  • cubs win #100. neat.

    crunch 11 hours 57 min ago view
  • Chapman in to stop the bleeding.

    Brick 12 hours 5 min ago view
  • they're falling apart late in WAS...damn.

    crunch 12 hours 36 min ago view
  • Wilson Ramos may be hurt badly. Carried off the field. Looks like the knee.

    John Beasley 12 hours 38 min ago view
  • Hendricks 6 shutout innings, ends night with an ERA of 1.99

    Cubster 12 hours 48 min ago view
  • in case it hasn't been mentioned yet, Twins are hiring Indians 32-year old Derick Falvey from the Cleveland Native Americans organization.

    Suppose McLeod could still be asked by another organization but likely staying put.

    Rob G. 13 hours 47 min ago view
  • Well put, both your remark, and Crunch's.

    Transmission 13 hours 48 min ago view
  • I saw the Gordon HR. It was like a funeral where the mourners were made to play baseball. So sad...

    CTSteve 13 hours 52 min ago view