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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  • Maddon shore isn't afraid to bat a rookie 4th in the order.

    Old and Blue 1 hour 11 min ago view
  • how many pairs of dice did dusty leave hidden around the park when he left the cubs?

    crunch 2 hours 5 min ago view
  • Line-up shakeup, going all-2015 with pitcher batting 8th, Bryant 2nd

    J-Hey, Bryant 1B, Zobrist, Willson, Coghlan, Baez 3B, Russell, Hendricks, Almora

    Eric S 2 hours 30 min ago view
  • The Cubs are currently down Schwarber, Fowler, Soler, and Rizzo and Montero appear to be day-to-day. Maybe not surprising that they are struggling a bit as they rely more than expected on Baez, Russell, Almora, Contreras, and Szczur to provide offensive value.

    Charlie 5 hours 9 min ago view
  • Joe: "I loved the way we brought it today, man. We'll take this every night and win a lot of ballgames like that. Losing 4 in a row...that's nothin'."

    The E-Man 19 hours 43 min ago view
  • 9 runs in 4 games. Zobrist slumping. Russell having a tough time. Almora not a contact guy. They miss Fowler big time.

    Bring the A-Team back.

    The E-Man 19 hours 48 min ago view
  • poop.

    4 losses in a row for the 1st time this season.

    crunch 19 hours 54 min ago view
  • DRAMA!

    crunch 20 hours 30 sec ago view
  • RIP 2016 cubs.

    i'll never forget clayton richard throwing that 1 inning that didn't suck.

    see you guys next season.

    crunch 20 hours 6 min ago view
  • Yeesh. Shut down innings a thing of the past for the Cubbies

    Not the best of nights for Russell - should of nailed Stanton at second on Ross's throw but mishandles it ... so of course Stanton comes around and scores as well

    Eric S 20 hours 8 min ago view
  • Guys, I've decided to focus on the first awesome two and a half months instead of this disastrous end to the season. Remember Arrieta's no-no, Contreras's first-ever-pitch HR, all the amazing defensive gems by Baez?

    We'll get 'em next year!

    Brick 20 hours 8 min ago view
  • David Fuckin Ross!!!

    That Baez almost-out defensive play was bonkers.

    Rob G. 20 hours 38 min ago view
  • 1- brilliant
    2- if miami was a team with decent runners i'd be more scared...or if they get guys on 1st and 2nd with less than 2 outs
    3- yes...he could use a roid re-up

    wow...miami's running game is even weaker than i thought. stolen bases is a lazy way to gauge running quality, but tonight's lineup has 7 SBs on the year and it's only 2 guys. they have 19 total SB and 6 of those are d.gordon...and 6 are ichiro. only 4 guys on the roster all season have successfully stolen a base and 1 is suspended.

    crunch 22 hours 6 min ago view
  • Just brainstorming:
    1) If Cubs are going to play a catcher at 1B, why not just gear him up and call it second home plate and see if they can trick Lester into throwing there every now and again.
    2) Between Lester on the mound, and a catcher at 1B, bunting might be lucrative for the Marlins.
    3) Barry Bonds looks deflated. I mean physically.

    Jackstraw 22 hours 22 min ago view
  • Smokies lineup sure could use the help. Promotions of Candalario and Zagunis to Iowa crippled the offense - McKinney's continued power outage not helping things.

    Eric S 22 hours 24 min ago view
  • wow happ...i thought they'd "go slow" with his development because of the lack of need and giving him time to try to stick at 2nd. neat.

    he turns 22 in a couple months.

    crunch 23 hours 13 min ago view