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 SBP for the 2015-16 ISP is $3,230,700. 

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. 

 

Recent comments

Subscribe to Recent comments
The first 600 characters of the last 16 comments, click "View" to see rest of comment.
  • In all seriousness the Cubs have the fewest amount of games played in the NL which means they're gonna be facing quite the grind later on including 24 games in a row at the end of June and beginning of July so I hope he does get a few days off.

    johann 1 hour 25 min ago view
  • Meh. He only got one hit today. Maybe give him a rest?

    Old and Blue 2 hours 1 min ago view
  • 34-14...awww yeah.

    crunch 2 hours 57 min ago view
  • Good thing the Cubs have five left-handed batters in the lineup. Velasquez is just tearing thru the righties [edit - doesn't seem to faze Bryant!]

    Eric S 4 hours 18 min ago view
  • ben zobrist gets to ride up front tonight cause he's a good guy at sports.

    cubs with a 5 run lead and a lackey shutout through 3ip \m/

    crunch 4 hours 52 min ago view
  • HAGSAG: I have not seen Joe Nathan out on the field, but he is supposedly at the UAPC. 

    Arizona Phil 7 hours 48 min ago view
  • ERIC S: Best outing I've ever seen from Manny Rondon, and I've seen most of his outings since the Cubs got him from the Angels. 

    M. Rondon is competing with six others (Dylan Cease, Bryan Hudson, Jose Paulino, Pedro Silverio, Jesus Castillo, and Erling Moreno) for a starting slot at Eugene, and (as you can probably tell from the EXST box scores)  the competition has gotten fierce over the last couple of weeks, With the exception of Moreno, the Eugene SP candidates have upped their game lately, and M. Rondon's outing yesterday was especially impressive/dominating. 

    Arizona Phil 7 hours 51 min ago view
  • E-MAN: Pierce Johnsion was mixing a 92-94 MPH fastball with a plus-change-up AND curve, and he threw strike-after-strike-after-strike with all three of his pitches. I believe that was the best command and pitch-efficiency I've ever seen from Johnson, who often pitches from behind in the count and issues too many walks.  

    Of course now he has to avoid a recurrence of the lat strain (whch he has had previously in his career) as well as all of the other miscellaneous physical problems he's had over the last three years (hamstring, quad, back, etc).  

    Arizona Phil 8 hours 1 min ago view
  • PHIL: Any movement on P. Johnsons pitches? What was his "out" pitch? I know he was working on a 4th pitch, so wondering what he is looking like these days. Thanks.

    The E-Man 8 hours 44 min ago view
  • AZ Phil, has Nathan showed up in Mesa yet? Thanks.

    Hagsag 13 hours 29 min ago view
  • Eickhoff looks like a good young pitcher. Lets steal him!

    Hagsag 13 hours 30 min ago view
  • Manny Rondon faced 13 batters ... and got 10 to K. Not a bad day's work.

    Eric S 23 hours 11 min ago view
  • With several other Cubs hitters bailing out on curves today I think overall it wasn't being seen well. It for sure looked silly but a good breaking pitch coming at you and then breaking down isn't the easiest thing to see and has made many hitters look silly. Also Soler should have more walks this year but for quite a few called strikes that were actual balls and even the called strike he bailed on was borderline.

    johann 1 day 2 hours ago view
  • it's not like we're talking about a guy who's never had issues with pitch selection and seeing the ball over here. we're talking about a guy who has some rather legendary swing-and-misses at breaking stuff who's been exploited low. going forward it's worth paying attention to seeing if he can be exploited inside, too. he seriously bailed out of the box on a called strike. sure it was a good curve, but he obviously didn't see that well at all.

    crunch 1 day 2 hours ago view
  • It would seem like he is figuring it out now and it's really coming together. Really happy for him. Joe was really protecting him from the 3rd time through the order, but as you allude to, he is earning trust to go deeper.

    Wondering if has potential to become a #3 pitcher? His current stats certainly support it.

    The E-Man 1 day 2 hours ago view
  • That doesn't count b/c CRUNCH didn't see it on his 60" HDTV 5 times in replay.

    I have seen many players "bail out" when the ball looked like it was gonna hit them.

    Especially with the advent of the splitter and pitchers that can really get the ball to dance. Marmol, Sutter, Pedro Martinez, Curt Schilling, Derek Lowe, Smoltz, Arrietta...

    These guys have made the best bail out only for the ball to come over the plate and be called a strike.

    No shame in that. The same way players whiff hard enough to cause them to drill a hole in the ground from spinning.

    The E-Man 1 day 2 hours ago view