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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  • "Tommy La Stella (hamstring) will remain on his minor league rehab assignment through at least Friday."

    should be an interesting roster shuffle once these guys trickle back in. i imagine patton or peralta are on the hot seat for la stella's return.

    crunch 15 min 24 sec ago view
  • 6 pitches, 2 run lead.

    neat.

    crunch 1 hour 24 min ago view
  • So am I. Point remains.

    Old and Blue 11 hours 13 min ago view
  • Not certain why the site has been slowed. Worked much of Wednesday on it and will continue today. Sorry for the inconvenience. I will probably take it offline for a while, but it will be up before the game against the Mets.

    WebAdmin 19 hours 20 min ago view
  • Mine has been really slow to load -- on different computers from different locations.

    JoePepitone 21 hours 41 min ago view
  • Anybody else have issues accessing the site this afternoon/evening?

    Eric S 22 hours 42 min ago view
  • Boras is 63, maybe he'll be retired or dead by the time Bryant, Russell, Almora, Albertos all hit free agency. Doubt he will be before Jake hits there though.

    cubbies.4ever 1 day 2 hours ago view
  • Interesting choices when guys get healthy.

    LaStella, Fowler & Soler replace Coghlan, Almora and Sczcur? I assume they don't want Almora to sit.

    Despite MIggy's demise, I assume they keep him around to mentor Contreras?

    billybucks 1 day 3 hours ago view
  • I believe Willson now has more CS than MIggy. The kid has an arm. Also, Russell is amazingly good on those plays at 2nd.

    billybucks 1 day 4 hours ago view
  • oh yeah...thanks joe/billy.

    poor outing, still got the win, go cubs.

    crunch 1 day 5 hours ago view
  • Although it felt like it, Jake didn't lose to them -- he got the W. (Assuming you are referring to Monday's game)

    billybucks 1 day 6 hours ago view
  • Arrieta didn't lose to the Reds. He got the win -- he just didn't pitch like we expect him to.

    JoePepitone 1 day 6 hours ago view
  • almora's 1st HR!

    crunch 1 day 6 hours ago view
  • it's not like this CIN team is lost-cause horrible, but aside from defense and power this is a truly horrible team.

    kinda crazy arrieta lost to them and yesterday's game had to go 15 innings for the cubs win.

    crunch 1 day 7 hours ago view
  • It looked like Hamilton got screened by Duvall and that Duvall just barely deflected the ball off of his glove--redirecting it slightly without taking away much of its momentum.

    At least it didn't turn into a Schwarber/Fowler situation. Hamilton and Duvall are both pretty important youngish players for the Reds.

    Charlie 1 day 7 hours ago view
  • he walked off the field on his own. aside from a concussion watch and some attention to his leg/knee that buckled a bit under him, the biggest thing hurt was probably his pride after the ball knocked off his skull.

    crunch 1 day 7 hours ago view