First-Year Player Draft (MLB Rule 4 Draft) Signing Bonus Pool
There is a maximum limit on the aggregate amount of money that each club can pay as signing bonuses to players selected in a First-Year Player Draft (MLB Rule 4 Draft) before penalties begin to accrue.
Prior to the Rule 4 Draft, each MLB club is assigned a “Signing Bonus Pool” (SBP) equal to the aggregate pre-assigned bonus value of all of the club’s draft slots in the first ten rounds (including supplemental & compensatory draft picks). The higher the slot, the higher the bonus value. (The collective MLB SBP is determined in advance by calculating industry revenues).
The Cubs 2023 Rule 4 Draft SBP is $8,962,000 (was $10,092,700 in 2022)
If a club fails to sign a player selected in the first ten rounds (including supplemental draft picks), the value of that slot is deducted from the club’s SBP.
There is no bonus value assigned to draft slots after the 10th round, but if a club pays a signing bonus in excess of $150,000 to a player selected in the 11th round or later or to a player eligible for selection who was not drafted, the amount of that bonus in excess of $150,000 is deducted from the club’s SBP.
NOTE: A player eligible for selection in the MLB First-Year Player Draft who is not selected can be signed by any MLB club as a Non-Drafted Free-Agent (NDFA) beginning at 9 AM (Eastern) on the day after the final day of the draft. However, clubs are not permitted to discuss with a draft-eligible player the possibility of signing the player as a NDFA anytime prior to 9 AM on the day after the final day of the draft.
If a club exceeds its SBP by less than 5% in a given Rule 4 Draft the club must pay a 75% tax on the overage. If a club exceeds its SBP by 5%-10% the club must pay a 75% tax on the overage and the club’s 1st Round draft pick in the next Rule 4 Draft is forfeited, if the club exceeds its SBP by 10%-15% the club must pay a 100% tax on the overage and the club's 1st & 2nd round draft picks in the next Rule 4 Draft are forfeited, and if the club exceeds its SBP by more than 15% the club must pay a 100% tax on the overage and the club's 1st Round picks in the next two Rule 4 Drafts are forfeited.
Money collected from the tax on clubs that exceed their SBP will be distributed to qualifying clubs as Revenue Sharing funds, and forfeited draft picks will be reassigned by lottery. (Any club that exceeds its SBP is excluded from the lottery).
Recent comments
Dolorous Jon Lester (view)
That’s a fantastic deal for SF
crunch (view)
SF snags b.snell...2/62m
Cubster (view)
AZ Phil: THAT is an awesome report worth multiple thanks. I’m sure it will be worth reposting in an “I told you so” in about 2-3 years.
Arizona Phil (view)
The actual deadline to select a post-2023 Article XX-B MLB free agent signed to 2024 minor league contract (Cooper, Edwards, and Peralta) to the MLB 40-man roster is not MLB Opening Day, it is 12 PM (Eastern) this coming Sunday (3/24).
However, the Cubs could notify the player prior to the deadline that the player is not going to get added to the 40 on Sunday, which would allow the player to opt out early. Otherwise the player can opt out anytime after the Sunday deadline (if he was not added to the 40 by that time).
Arizona Phil (view)
Today is an off day for both the Cubs MLB players and the Cubs minor league players.
Arizona Phil (view)
For those of you keeping track, so far nine players have been called up to Mesa from the Cubs Dominican Academy for Minor League Camp and they will be playing in the ACL in 2024:
* bats or throws left
Angel Cepeda, INF
* Miguel Cruz, P
Yidel Diaz, C
* Albert Gutierrez, 1B
Fraiman Marte, P
Francis Reynoso, P (ex-1B)
Derniche Valdez, INF
Edward Vargas, OF
Jeral Vizcaino, P
And once again, despite what you might read at Baseball Reference and at milb.com, Albert Gutierrez is absolutely positively a left-handed hitter (only), NOT a right-handed hitter.
Probably not too surprisingly, D. Valdez was the Cubs #1 prospect in the DSL last season, Cepeda was the DSL Cubs best all-around SS prospect not named Derniche Valdez, Gutierrez was the DSL Cubs top power hitting prospect not named Derniche Valdez, E. Vargas was the DSL Cubs top outfield prospect (and Cepeda and E. Vargas were also the DSL Cubs top two hitting prospects), Y. Diaz was the DSL Cubs top catching prospect, and M. Cruz was the DSL Cubs top pitching prospect.
F. Marte (ex-STL) and J. Vizcaino (ex-MIL) are older pitchers (both are 22) who were signed by the Cubs after being released by other organizations and then had really good years working out of the bullpen for the Cubs in the DSL last season.
The elephant in the room is 21-year old Francis Reynoso, a big dude (6'5) who was a position player (1B) at the Cardinals Dominican Academy for a couple of years, then was released by STL in 2022, and then signed by the Cubs and converted to a RHP at the Cubs Dominican Academy (and he projects as a high-velo "high-leverage" RP in the states). He had a monster year for the DSL Cubs last season (his first year as a pitcher).
Arizona Phil (view)
DJL: The only players who definitely have opt outs are Cooper, Edwards, and Peralta (Opening Day, 5/1, and 6/1), and that's because they are post-2023 Article XX-B MLB free agents who signed 2024 minor league contracts and (by rule) they get those opt outs automatically.
Otherwise, any player signed to a 2024 minor league contract - MIGHT or - MIGHT NOT - have an opt out in their contract, but it is an individual thing, and if there are contractual opt outs the opt out(s) might not necessarily be Opening Day. It could be 5/1, or 6/1, or 7/1 (TBD).
Because of their extensive pro experience, the players who most-likely have contractual opt outs are Alfaro, Escobar, and D. Smith, but (again), not necessarily Opening Day.
Also, just because a player has the right to opt out doesn't mean he will.
Dolorous Jon Lester (view)
I love the idea that Madrigal heads to Iowa in case Morel can’t handle third.
The one point that intrigues me here is Cooper over Smith. I feel like the Cubs really like Smith and don’t want to lose him. Could be wrong. He def seems like an opt out if he misses the opening day roster
Arizona Phil (view)
Childersb3: Both Madrigal and Wisdom can be optioned without any restriction. Their consent is not required.
They both can be outrighted without restriction, too (presuming the player is not claimed off waivers), but if outrighted they can choose to elect free agency (immediately, or deferred until after the end of the MLB season).
If the player is outrighted and elects free-agency immediately he forfeits what remains of his salary.
If he accepts the assignment and defers free agency until after the conclusion of the season, he continues to get his salary, and he could be added back to the 40 anytime prior to becoming a free-agent (club option).
Childersb3 (view)
Phil,
Madrigal and Wisdom can or cannot refuse being optioned to the Minors?
If they can refuse it, wouldn't they elect to leave the Cubs org?