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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  • j.buchanan with a nice start...5ip 2h 1bb 3k, 0r/er

    zobrist with 2HR and a double through 8

    heyward 0-4 :(

    crunch 7 hours 21 min ago view
  • Mark Gonzales @MDGonzales

    Soler likely to return Sunday, Maddon says

    crunch 9 hours 59 min ago view
  • Right now, I'd like to see the Mets first, Giants 2nd.

    I believe that since most of the team from last years' NLCS is on the squad this year, they will really amp their game up even more to kick their ass in payback for 2015.

    The Giants just do not have the depth in years past, and I think all things equal - and at Wrigley - they could handle them.

    I do not want to see the Cards, period. Or their fans, media, or Joe Buck.

    The E-Man 10 hours 18 min ago view
  • I don't want to play Braves in the first round. Any friggin team in the league can win 3 of 5..I hate the first round. Furthermore, I wanted to play the Marlins in 2003 and the Mets over Dodgers last year.

    With that said in reverse order:
    3. Cardinals: It will be devastating to lose in the first round, but even worse to their main rival. It is increased incentive for the Cardinals, especially after last year. Cards would have nothing to lose, Cubs have everything to lose.

    2. Giants: Rotation in the playoffs scare me a bit, but what a lousy team.

    blockhead25 11 hours 1 min ago view
  • 1. Mets--because of the losses in the rotation
    2. Giants--because they're not the team they were BUT they maybe have bullshit even-year magic?
    3. Cardinals--because rivalry and not making the playoffs hurts them more than losing in the NLDS plus getting eliminated by them in the playoffs would make for horrible sports commentary next throughout next season.

    Charlie 12 hours 45 min ago view
  • Who's asking?

    jacos 12 hours 46 min ago view
  • #TeamEntropy

    http://www.si.com/mlb/2016/09/30/team-entropy-update-wild-card-races-al-...

    CLE/DET rained out last night already, possible rain-outs in New York (vs. Baltimore), Boston(vs. Toronto) and Philly(vs. Mets) this weekend too.

    Not only games involving playoff spots that would need to be played, but any that involve home field advantage.

    Rob G. 12 hours 55 min ago view
  • I got the first one! Second one I'm not even sure what even/odd betting is.

    johann 13 hours 42 min ago view
  • any opponent preference for NLDS?

    Mets are down to 1 great pitcher instead of 4. Syndegaard may pitch Sunday which means if Mets win the WC game, he'd be set up for Game 1. There's a chance they clinch a spot by Sunday so he'd pitch the WC and then we'd probably get Colon for Game 1. They've certainly had the hottest bats over the last week and month out of the WC options.

    Rob G. 14 hours 4 min ago view
  • Rob Richardson 19 hours 8 min ago view
  • Can't teach height and thinness

    jacos 21 hours 3 min ago view
  • Hopefully Pirates don't call up A. Lincoln.

    jacos 1 day 6 hours ago view
  • j.buchanan going friday...should be...baseball...or something like it.

    crunch 1 day 6 hours ago view
  • Wow. I didn't know they could do that.

    Nice for Willson, not so much for Addy.

    billybucks 1 day 6 hours ago view
  • Game is officially called...also officially a tie.

    Stats count, no make-up date of course.

     

    Rob G. 1 day 6 hours ago view
  • Yeah -- seeing the weather -- I hope KB and Rizz are inside, wrapped in blankets and drinking hot chocolate.

    billybucks 1 day 7 hours ago view