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 2015 Rule 4 Draft SBP is $7,236,100.

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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  • Phil, it looks like Kevonte Mitchell has made some progress this Spring. Your thoughts please, thanks.

    Hagsag 2 min 14 sec ago view
  • so far ryan williams (AAA) is the only system prospect on the "could be ready soon" horizon doing well...that said, he's not very exciting and he's assumed to be an end-rotation talent at best.

    paul blackburn is getting great early returns in AA, but he's getting surprisingly low K numbers doing it. he throws lot of low/sinking stuff with good control...also assumed to be an end-rotation guy, but he's got room to be better, especially given his control as base to build on.

    crunch 5 hours 18 min ago view
  • Speaking of pitching -- another ugly outing for Underwood at AA. Through 6 starts: 5.19 ERA, WHIP 1.69. Yikes!

    Man, do we need starting pitching depth. Our best hopes are still hanging with AZ Phil in Arizona. Very scary.

    billybucks 6 hours 16 min ago view
  • jeebus... that's terrible.

    Ryno 7 hours 17 min ago view
  • *clap* *clap* *clap*

    Brick 9 hours 18 min ago view
  • Thanks AZ. If you like him, I like him.

    Old and Blue 10 hours 12 min ago view
  • Awesome report, and good to see Beeler on his way back.

    I'm also very happy to hear about the bi-level bump for Daniel Lewis. In the Name of Theo, he was the Last of the Full-Season Cuts, and There Will Be Blood for those who unnecessarily slow his development. Sure, he might end up in independent ball pitching for Lincoln. But if everything breaks right, he may even have a shot at joining up with the Gangs of Chicago. I wouldn't bet My Left Foot on it, though.

    John Beasley 10 hours 39 min ago view
  • CHARLIE: The Cubs did the same thing with LHSP Eric Jokisch last month, and it has nothing to do with needing the player's 40-man roster slot. 

    The hope is that another MLB club will claim the player, so that you aren't on the hook for any termination pay (which you would be if you release him) AND you pick up $20,000 from the claiming team, all for a guy you don't want going forward anyway.  

    Arizona Phil 10 hours 41 min ago view
  • Moosetacos, I like it. All I can think of is a bearded lumberjack dude operating a Mexican style taco truck with a Canadian accent.

    Sonicwind75 11 hours 17 min ago view
  • How strange is this for May? Is it insignificant, or does it suggest some sort of trade might be in the works?

    Charlie 11 hours 23 min ago view
  • The Cubs have sent LHRP C. J. Riefenhauser outright to Iowa. 

    Cubs MLB 40-man roster now stands at 37 (three slots open). 

    Arizona Phil 12 hours 6 min ago view
  • yow...the a.gordon/m.moustakas collision now makes the schwarb collision look minor in scope.

    gordon broke his wrist, expected to miss 4+ weeks...and today moosetacos has been diagnosed with a torn ACL. fun times in KC.

    crunch 13 hours 39 min ago view
  • dodgers calling up julio urias for tommorow's game. neat.

    fernando-mania might have a new heir...dude is 19 (turns 20 in august) and he's got a legit argument for being MLB-ready.

    crunch 14 hours 30 min ago view
  • jacos 15 hours 50 min ago view
  • Happ was the #9 pick last year, and he moved from OF to 2B in the same offseason that Castro was traded.

    Gleyber also in the picture at second.

    VirginiaPhil 19 hours 19 min ago view
  • jacos 19 hours 38 min ago view