Cubs Use Araujo to Acquire ISBP Space

The Baltimore Orioles secured Outright Assignment Waivers on RHP Pedro Araujo (who was Designated for Assignment by the Orioles on Wednesday) this afternoon, then he was re-claimed by the Cubs for $50,000 (half the Rule 5 Draft price) and was outrighted back to AAA Iowa (the minor league club from which he was selected by Baltimore in the Major League Phase of the December 2017 Rule 5 Draft), and then the Cubs traded Araujo back to the Orioles for $750K in 2018-19 International Signing Bonus Pool (ISBP) space.

So the Orioles get $50,000 and they get to keep Araujo (but don't need to keep him on their MLB 40-man roster -- he was assigned to AAA Norfolk), and the Cubs get to spend $750K more ISBP money (if they so choose). 

However, it's very unlikely that the Cubs would have paid the Orioles $50,000 to re-claim Araujo and then traded him back to Baltimore just for ISBP space (in other words, the right to spend $750K more money on international free-agents) unless there is a particular international player (like maybe Cuban SS Yolbert Sanchez?) or possibly multiple players (like perhaps two or three of the Mexican IFAs recently declared eligible to sign by MLB, like RHP Jaime Melendez, RHP Jose Angel Valenzuela, and/or C Fernando Villalobos) the Cubs wish to sign prior to the 2018-19 ISP signing deadline on June 15th, and the $750K in ISBP space acquired from the Orioles in the Araujo deal (added to whatever remains from their 2018-19 ISBP space) is the only way they can get it done. 

 

Comments

Hey Phil, can Melendez and Valenzuela pitch in reliief? Sign them and bring them to Chicago now!

If the Cubs use the $750K in ISBP space they acquired from the Orioles in the Araujo trade to sign one or more of the remaining Mexican IFAs (most of whom sign a "future services contract" with a Mexican League club when they are 15 or 16), the Cubs would have to pay an additional 35% of the signing bonus to the Mexican League club as a "release fee," but the 35% release fee paid to the Mexican League club on top of the signing bonus paid to the player does - NOT - count against the MLB club's ISBP. So (for example) if the Cubs were to sign Mexican IFA catcher Fernando Villalobos for $750K, they would have to pay an additional $265K to the the Mexican League club that controls Villalobos, but the $265 paid to the Mexican League club as a "release fee" would not count against the Cubs 2018-19 ISBP. 

Phil, would the Cubs be able to re-sign the pitcher from Mexico they had signed but whose contract was voided? His name is escaping me at the moment.

florencio serrano jr, maybe

RHP Florencio Serrano Jr signed with the Texas Rangers about ten days ago. 

The Cubs have optioned RHRP Carl Edwards Jr to Iowa and have placed LHRP Mike Montgomery (left shoulder inflammation) onto the 10-day Injured List. Their replacements have not yet been announced. 

Since players on the Cubs MLB 40-man roster who were optioned to the minors prior to MLB Opening Day (like Collins, Maples, Norwood, K. Ryan, Wick, etc) cannot be recalled any earlier than the 11th day of the MLB regular season (which is tomorrow -- Sunday April 7th) unless the player is replacing a player who has ben placed onto an MLB inactive list (like the 10-day IL), only one of Saturday night's bullpen reinforcements (the one who replaces Montgomery) can be a pitcher who was already on the MLB 40-man roster.

And so the replacement for Edwards - MUST - be a pitcher who is not on the Cubs MLB 40-man roster (like Allen Webster or Dakota Mekkes), and of course a player will have to be removed from the 40 in order to create a slot for Webster or Mekkes. Possibilities for that move include transferring Morrow, Barnette, or Cedeno to the 60-day IL (which would mean that pitcher cannot be reinstated from the IL until the last week of May), or a DFA of a player on Optional Asignment. 

The Cubs have recalled LHRP Kyle Ryan from Iowa (he replaces Montgomery) and selected the contract of RHRP Allen Webster (he replaces Edwards), and RHSP Jen-Ho Tseng has been Designated for Assignment (which opens up a slot on the 40 for Webster).

hopefully the allen webster era will be good enough to not involve a desire to send him down.  absolutely filthy spring for the dude.

If the Cubs are able to secure Outright Assignment Waivers on Jen-Ho Tseng and outright him to the minors, he does - NOT - have the right to elect free-agency - AND - he will remain under club control through the 2020 season (although he will be eligible for selection in the December 2019 Rule 5 Draft). 

Tseng signed with the Cubs as an IFA out of Taiwan in July 2013 ($1.625M signing bonus) but he was "Signed for Future Service," which means his minor league service time clock didn't start until the 2014 season, and so the Cubs gained an extra year of club control that will carry through the 2020 season. 

miggy montero (who has a wholesome as hell twitter account and seems to still love the cubs) cannot help the cubs current situation...

https://i.imgur.com/GOlp2li.png

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  • JustSayin' 1 day 2 hours ago (view)

     I hear you but welcome to the world of Theo.  The team is always a step or two away from the World Series in his mind, whether that is true or not.  Therefore, the thing to do on the margin is to trade top prospects or younger guys on the roster for that missing puzzle piece, not build for the future.  I had a front-row seat for this as a Red Sox fan.  If Pedro Martinez doesn't insist the Red Sox sign David Ortiz for table scraps and Chris Bryant isn't the no-brainer second pick in the draft, we'd all be wondering what happened to that Theo guy who was in the Red S

     

  • Cubster 1 day 3 hours ago (view)

    Shogo Akiyama is a lefty bat, career BA at.301 w/ Seibu Lions.  Recent OBPs: .419, .385, .398, .403 and .392. HR 20-15 in last 3 seasons Stolen bases, 12 in 2019, 18 in best season (2016). Defense supposedly plus-plus, 7-10 assists (10 in 2016). Clearly a leadoff hitter.

     

  • crunch 1 day 20 hours ago (view)

    christian yelich committed internet homicide on yu darvish...

    https://twitter.com/ChristianYelich/status/1195462...

     

  • Charlie 2 days 51 min ago (view)

    Little in the offseason could make me happier than the Cubs finding ways to retain the good MLB players who came up with them while remaining competitive. This Javy extension talk makes me much happier as a fan than the Bryant and Contreras trade talk.

     

  • crunch 2 days 1 hour ago (view)

    "Javy Baez. The two-time All-Star shortstop and 2018 MVP runner-up already has begun negotiations on a potential long-term extension with the Cubs, according to sources."

    also, some talk of being linked to shogo akiyama (CF, Japan, 32yo in April)

    https://chicago.suntimes.com/cubs/2019/11/15/20966...

     

  • crunch 2 days 21 hours ago (view)

    j.odorizzi accepted his qualifying offer (17.8m) from MIN...so did j.abreu (CWS)....everyone else is gonna play the FA market.

    w.smith (SF) immediately signed with the braves for 3/39 (13m team option/1m buyout on the backend).  braves lose a 2nd round pick...which they'll probably get back when someone signs j.donaldson.

     

  • crunch 3 days 21 hours ago (view)

    nice.

    it's not like i think he's something special, but if he had 5mph more on his stuff he'd probably be a top prospect in the system combined with his command/control.  he's got highly repeatable junk and he's still young enough there might be a little more velocity to discover.

     

  • Arizona Phil 4 days 43 min ago (view)

    CRUNCH: As long as Carrera is placed on the AAA Iowa reserve list on 11/20 he should be safe from selection, and I would say he is in fact close to a lock to be placed on the Iowa roster.

    Presuming he is on the Iowa reserve list going into the Rule 5 Draft, I doubt very much that he would get selected in the Major League Phase because he hasn't pitched above Lo-A. 

     

  • crunch 4 days 54 min ago (view)

    nice info...

    i'm low-key keeping an eye on faustino carrera if he's not protected...which he may not be protected.

    he throws junk, but he throws it well, and with great control.

     

  • Arizona Phil 4 days 1 hour ago (view)

    I've talked to Player Development people over the past many years about the Rule 5 Draft and how an organization goes about deciding whether to protect or not protect a player from selection. 

    STEP 1: How many of your Rule 5 Draft-eligible players are actually legit candidates to get selected in the Major League Phase?. Usually there a dozen or more who could conceivably/realisticaly get selected. You need to identify them and then carefully evaluate them. 
    EXAMPLES: See my lists above. 

     

  • crunch 4 days 3 hours ago (view)

    "There are no untouchables," Epstein said.

    In truth, the Cubs boss has said the same every year, but it certainly sounds like he means it this time. "We're in the 'information collecting' stages of the process," one general manager put it on Tuesday.

    https://www.espn.com/mlb/story/_/id/28066390/there...

     

  • Dolorous Jon Lester 5 days 6 hours ago (view)

    I think, in relation to the higher profile guys like Javy or Contreras, they're trying to put some pressure on to sign extensions.

    That said I do think they're listening on everyone with the only name I haven't seen being Rizzo.

     

  • crunch 5 days 22 hours ago (view)

    i wonder where the cubs will go with things.

    there's a lot pointing to the cubs being expected to listen to offers on almost anyone.  as it is, on paper, the cubs could roll right into 2020 with no changes whatsoever and still field a very competitive team.  the whole "shakeup" thing seems to be a very hot topic from a variety of sources, though.

    bryant, contreras, schwarber have all been linked to "cubs may be listening" rumors...probably listening to anything on happ, bote, almora, russell, too...

     

  • Hagsag 5 days 23 hours ago (view)

    Even the Cubs should be able to out bid the Marlins!

     

  • crunch 5 days 23 hours ago (view)

    "According to Joe Frisaro of MLB.com, the Marlins are "believed" to have interest in free agent outfielder Nicholas Castellanos."

    by interest, i assume they mean they'd like to have some baseball rookie cards or his or maybe a hug from him.  i can't imagine they actually want to spend money on someone they could use to make their team better because that makes no sense.

     

  • Arizona Phil 6 days 15 hours ago (view)

    Prior to joining the Cubs in 2012 Scott Harris was Director of Baseball Operations in the MLB office, which means he received, reviewed, and approved all major league and minor league contracts and transactions, as well as providing MLB clubs with schedules, rules updates, and draft information.