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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  • Yes!!!

    Thanks crunch!!

    It's mesmerizing

    jacos 2 hours 30 min ago view
  • 5 HR in his last 5 games (3, 1 run...1, 2 run)

    sure, 3 HR were in colorado, but 2 were in night games in SD. that evens out somehow.

    crunch 3 hours 19 min ago view
  • Good work!

    John Beasley 4 hours 52 min ago view
  • crunch 11 hours 30 min ago view
  • My guy Addy

    jacos 11 hours 30 min ago view
  • oh, another a.russell HR...whatever.

    crunch 11 hours 44 min ago view
  • Dylan Cease throwing gas tonight for the Emeralds. In first three innings, has hit 100 mph six times, averaging 98 mph

    Eric S 12 hours 3 min ago view
  • Can I get a gif of Joe West's jowls waving as he chews gum?

    /Asking for a friend

    jacos 12 hours 27 min ago view
  • my gawd...that castillo-to-bryant pickoff was a thing of beauty. the knock on him in the minors being slow out of the crouch is looking less like a thing.

    crunch 12 hours 39 min ago view
  • bless your heart. *pinches cheeks*

    crunch 17 hours 36 min ago view
  • real shame I missed this week's episode of The Crunch Reporter.

    It's highly unusual.

    It does matter a little.

    It matters much less than you think.

     

     

    Rob G. 17 hours 38 min ago view
  • four winds field is awesome. it's crazy how minor league parks have "grown up" since the 80s/90s and that park was one of the late-80s models that showed a low-capacity ballpark could look like you're at something other than a highschool baseball game.

    crunch 18 hours 44 min ago view
  • On another topic....I returned to South Bend last night for the 2nd time this season (still haven't tried either the deep-fried mac & cheese sandwich nor "The Porknado", as the drive home is over an hour and that could get ugly), and was pleasantly surprised to find D. Underwood pitching in a rehab start. He looked good -- although, to be fair, these are low-A hitters -- fastball consistently at 94-95 (if the SB scoreboard is to be believed -- several pitches were clocked in the 30s...) and with good location.

    billybucks 19 hours 52 min ago view
  • he gains nothing, no advantage, no saving of resources, nothing...there is not a cost/benefit tradeoff...him letting the running game go on around him for others to control isn't gaining him an advantage elsewhere. it's putting him at a disadvantage even if it's not cashed in with a run.

    crunch 22 hours 32 min ago view
  • And out of respect for the rest of TCR, I'm done on this. I'm sure I'm not the only one in the other camp, but time to let it go. (Until the next Lester start. I kid.)

    #baseballtalk

    Tito 22 hours 35 min ago view
  • He is putting himself at a disadvanage. But how much of one relative to the rest of his game? He's not Justin Germano -- he's inarguably one of the best SPs in baseball, issue or not. It would be more of thing to discuss ad nauseum if it constantly caused him to give up runs and lose games. But it doesn't.

    #baseballtalk

    Tito 22 hours 45 min ago view