International Signing Bonus Pool

There is a maximum limit on the aggregate amount of money each MLB club can pay as signing bonuses to international first-year players before penalties begin to accrue.

Each MLB club is assigned an International Signing Bonus Pool (ISBP) for each International Signing Period (ISP). A club’s ISBP is based upon the club’s winning percentage from the previous season. (Clubs that finish with lower winning percentages will receive a larger ISBP than clubs with higher winning percentages, with the ISBP increasing inverse to the previous season’s standings). In the case of two clubs finishing with the same winning percentage the previous season, league standings from two seasons back will be used to break the tie. If the clubs are still tied, league standings from three seasons back, four seasons back, etc, will be used to break the tie.

The Cubs ISBP for the 2016-17 ISP is $2,063,100 (it was $3,230,700 in the 2015-16 ISP), and because the Cubs exceeded their 2015-16 ISBP by more than 15%, they will not be allowed to sign any international free-agent subject to ISBP signing bonus limits to a contract with a signing bonus in excess of $300K in both the 2016-17 and 2017-18 ISP.    

A club's ISBP consists of four separate "Signing Bonus Values" (SBV) plus an additional $700,000. Each SBV corresponds to a particular "slot," and each slot is assigned a specific cash value (TBA prior to the start of the ISP).  

A Signing Bonus Value (SBV) can be traded, but with some restrictions:

1. An SBV can only be traded during the International Signing Period (ISP) to which the SBV was assigned (July 2nd through June 15th of the following year);

2. An SBV cannot be sold for cash. However, cash can be exchanged if it is used to offset the salary or salaries of a player or players acquired in return for the SBV;

3. An SBV cannot be substituted for a "Player to Be Named Later" (PTBNL);

4. The entire SBV must be assigned to the other club when it is traded;

5. A club may not acquire an SBV in a trade if the club has already paid signing bonuses equal to or in excess of its ISBP;

6. Once acquired, an SBV can be traded ("flipped") to a third club, as long as the third club has not already paid signing bonuses equal to or in excess of its ISBP;

7. A club's originally assigned ISBP can be increased by a maximum of 50%. If a club acquires an SBV in a trade that causes the club's ISBP to increase to an amount that is more than 50% above the club's originally-assigned ISBP, the portion of the SBV that caused the club's ISBP to increase to an amount that is more than 50% above the club's originally-assigned ISBP is subtracted from the SBV. 

A signing bonus paid to a first-year international player age 23 or older who has spent all or part of at least five seasons playing in an MLB-recognized foreign professional or "major" league does not count against the club’s ISBP. (A signing bonus paid to a first-year Cuban international player age 23 or older who has spent all or part of at least three seasons playing in Serie Nacional does not count against the club’s 2013-14 ISBP, then beginning with the 2014-15 ISP, a signing bonus paid to a first-year Cuban international player age 23 or older who has spent all or part of at least five seasons playing in Serie Nacional does not count against the club’s ISBP).

Also, a club’s six highest signing bonuses of $50,000 or less and ALL signing bonuses of $7,500 or less that are paid to first-year international players do not count against the club’s ISBP. (Beginning in July 2014, only signing bonuses of $10,000 or less that are paid to first-year international players will not count against a club’s ISBP).

The penalty for a club paying signing bonuses in excess of its ISBP is a tax (no draft picks are forfeited) and a restriction on bonuses that can be paid to international players during the next ISP:

1. A club that pays signing bonuses that exceed its ISBP by 5% or less must pay a 75% tax on the ISBP overage, but there are no restrictions on bonuses in the next ISP.

2. A club that pays signing bonuses that exceed its ISBP by 5-10% must pay a 75% tax on the ISBP overage, and is permitted to sign only one international first-year player to a bonus of $500K or more in the next ISP.

3. A club that pays signing bonuses that exceed its 2013-14 ISBP by 10-15% must pay a 100% tax on the overage, and is prohibited from paying a bonus in excess of $500K to any international first-year player in the 2014-15 ISP; then beginning with the 2014-15 ISBP, a club that pays signing bonuses that exceed its ISBP by 10-15% must pay a 100% tax on the ISBP overage, and no player may be signed to a bonus of $300K or more in the next ISP. 

4. A club that pays signing bonuses that exceed its 2013-14 ISBP by 15%+ must pay a 100% tax on the overage, and is prohibited from paying a bonus in excess of $250K to any international first-year player in the 2014-15 ISP; then beginning with the 2014-15 ISBP, a club that pays signing bonuses that exceed its ISBP by 15%+ must pay a 100% tax on the ISBP overage, and no player may be signed to a bonus of $300K or more in the next two ISPs. 

Money collected from the tax on clubs that exceed their ISBP will be used to further the development of international baseball.  

A player subject to ISBP restrictions cannot be signed to a Major League contract. 

 

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  • rain delay...bah.

    crunch 27 min 3 sec ago view
  • Indians extend their streak.

    Darwin Barney gets tagged with the loss.

    Mornington Crescent 34 min 3 sec ago view
  • delayed until 7:20 -EST- (tarp off the field)...

    CLE/TOR in the top 18th in case you're bored. 2nd baseman r.goins pitching for TOR...hit 90mph so far. 1ip 2h 1bb 0k, 0 r/er (bb was ibb). he threw a fastball/change mix. crowd loved it. d.ross is not impressed.

    d.barney strands j.lake at 2nd in the bottom 18 for the cubs bluejays...to the 19th!

    -cubs game has begun-

    crunch 48 min 39 sec ago view
  • BRADSBEARD: Javier Assad was still pitching into the 6th inning, and the first batter he faced reached base on an E-4 (that was Assad's 70th and final pitch of the game). Then Leathersich relieved Assad and retired the second batter 4-3 on the first pitch of the AB (the runner at 1st base advanced to 2nd on the play), and then on an 0-1 pitch the third batter in the inning (second one faced by Leathersich) lined into an inning-ending 6-4 DP (baserunner doubled off 2nd base). When calculating GO/AO, double plays and triple plays count as only one out. 

    Arizona Phil 1 hour 4 min ago view
  • Wow. The site actually loaded without an error! Happy 4th all, and Go Cubs!

    The E-Man 2 hours 24 sec ago view
  • OK -- my 4th of July resolution is to try to stay more positive. So -- 10 games to the AS break, meaning the Cubs will be in first place at the break! First time since...2008? Also, hopefully, Willson, KB and Javy learned something about Familia yesterday that they can use in the future.

    billybucks 2 hours 35 min ago view
  • Hmmm, my math might be fuzzy but if he retired 3 batters with 3 pitches, how did he get a 1/1 GO/AO ratio?

    bradsbeard 4 hours 21 sec ago view
  • Pls DFA Peralta when Richard comes back. Richard 1 IP, O R, O ER, 0 BB, 2 Ks in first rehab appearance. We really need to trade for a LHRP.

    chitownmvp01 4 hours 17 min ago view
  • "The Boston Red Sox were banned from signing any international players for the next year and had five of their teenage prospects declared free agents on Friday after a Major League Baseball investigation showed they circumvented signing-bonus rules last year, a source familiar with the situation told Yahoo Sports."

    https://www.yahoo.com/sports/news/source-red-sox-b...

    Rob Richardson 7 hours 56 min ago view
  • The thing with Heyward is its not just free agency. He is way under performing his career #s. He's making the same % of contact but his soft contact is much higher and hard contact much lower than all his previous years so there is something very specifically going on this year causing the issues. Chances are he will eventually get back to his previous #s and it's better to get the slump now and get that hot run later but I wish I knew what is different about this year. He's either just not seeing the ball as well or a swing change is causing it.

    johann 8 hours 12 min ago view
  • Only 3 pitches for Leathersich. Not much of a rehab outing.

    Thanks for the reporting Phil.

    QuietMan 8 hours 24 min ago view
  • He's the nastiest pitcher I've seen in awhile. I'm gonna give them all a mulligan on this one.

    Coghlan's strike out was more disappointing. He was fighting off a lot of pitches and not swinging at crap, and on the last pitch, he swung at stuff he was laying off, and struck out.

    And Heyward, too. I don't blame Heyward - I blame free agency. I hate it. You almost never get a valid return on the investment.

    I look forward to the day when ball players own the teams. The current economics are not sustainable.

    Old and Blue 9 hours 25 min ago view
  • Oh, I'm sure you're right. He's not 27-27 in saves for nothing. But, man, I hope they learned last night that he didn't throw a single pitch in the zone to KB, Contreras or Baez, and they all just kept swinging.

    billybucks 11 hours 33 min ago view
  • Sounds like a much better game than last night's fiasco in Flushing.

    Old and Blue 11 hours 50 min ago view
  • I'm pretty sure it looks like a sweet pitch on the way in. How many sinkers like that are there at 98 mph? I agree that they should just do a Lackey and stand their with their bat on their shoulders until he throws a strike next time, but I can see how that's hard to do.

    The bullpen, on the other hand, is a mess, and Heyward is starting to piss me off.

    Old and Blue 11 hours 51 min ago view
  • I noticed that too. He's getting to everything, but when he gets right under it on a high flyball he looks uncomfortable

    cubbies.4ever 20 hours 25 min ago view