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NIPPON PROFESSIONAL BASEBALL (JAPAN):
There are two Japanese "major" leagues, the Pacific League and the Central League, with each league consisting of six teams. Together the two leagues are known as "Nippon Professional Baseball" (or "NPB").
Unless the player is released or signed by an MLB club after being posted, all NPB players remain under club control (the player is "reserved") for nine seasons. After the 9th season, the player becomes an unrestricted free-gent.
1. An NPB player who is not under the control of an NPB club can sign with any MLB club.
2. With the consent of the NPB club, an NPB player who is under club control can be "posted" (made available to be signed by an MLB club) anytime during a three-month period extending from November 1st to February 1st.
NOTE: Beginning with the post-2018 off-season, an NPB player who is under club control can be "posted" (made available to be signed by an MLB club) anytime during a 35-day period extending from November 1st through December 5th.
3. The NPB club decides in advance on the amount of the release fee it will be paid if the player signs with an MLB club (it can be any amount up to $20M), and all MLB clubs are notified of the posting by the MLB Commissioner.
NOTE: Beginning with the post-2018 off-season, the release fee for NPB posted players will be:
MAJOR LEAGUE CONTRACT: If the guaranteed value of the contract is $25M or less the release fee will be 20% of the guaranteed value of the contract, if the guaranteed value of the contract is $50M or less but more than $25M the release fee will be 20% of the guaranteed value of the contract up through the first $25M and 17.5% of the guaranteed value of the contract for any amount above $25M, and if the guaranteed value of the contract is more than $50M the release fee will be 20% of the of the guaranteed value of the contract for the first $25M, 17.5% of the guaranteed value of the contract for the second $25M, and 15% of the guaranteed value of the contract above $50M. In addition, the MLB club must pay 15% of the value of any bonus earned, salary escalator, and/or option exercised over the length of the contract.
MINOR LEAGUE CONTRACT: The release fee is 25% of the signing bonus, and the MLB club must pay a supplemental fee if the player is subsequently added to the club's MLB reserve list (40-man roster) and is tendered a Major League contract (see "MAJOR LEAGUE CONTRACT" above).
4. Any MLB club willing to pay the release fee can negotiate with the NPB player during a 45-day period starting on the day after the player is posted.
NOTE: Prior to the post-2022 off-season, the negotiation period was 30 days.
5. If an MLB club signs a posted NPB player, the NPB club receives the designated release fee from that MLB club. The release fee can be paid in installments over an 18-month period, with the MLB club required to pay 50% of the release fee within 14 days of the submission of the posted player's contract, 17% of the release fee within six months of the submission of the posted player's contract, 17% of the release fee within 12 months of the submission of the posted player's contract, and 16% of the release fee within 18 months of the submission of the posted player's contract. (The release fee is not considered when calculating the MLB club's payroll).
6. If a posted NPB player does not sign with an MLB club within 45 days after being posted, the NPB club does not receive the release fee, and the player cannot be posted again until the next November 1st (unless he becomes an unrestricted free-agent in the meantime).
KOREA BASEBALL ORGANIZATION (SOUTH KOREA):
The Korea Baseball Organization (KBO) is the South Korean "major" league. With a new club beginning play in 2015, there are now ten teams in the KBO.
Unless the player is released or signed by an MLB club after being posted, all KBO players remain under club control (the player is "reserved") until the player's contract has expired.
1. A KBO player who is not under the control of a KBO club can sign with any MLB club.
2. With the consent of the KBO club, a KBO player who is under club control can be "posted" (made available to be signed by an MLB club) anytime during a three-month period extending from November 1st to February 1st.
NOTE: Beginning with the post-2018 off-season, a KBO player who is under club control can be "posted" (made available to be signed by an MLB club) anytime during a 35-day period extending from November 1st through December 5th.
3. If a KBO club decides to post a player, the KBO club advises the MLB Commissioner of the posting, and then the MLB Commissioner notifies all MLB clubs. Once the posting notification is transmitted, MLB clubs have four days to decide whether to submit a bid. The bid is what the MLB club is willing to pay to the KBO club as a "release fee" if the MLB club signs the posted KBO player.
NOTE: Beginning with the post-2018 off-season, the release fee for KBO posted players will be:
MAJOR LEAGUE CONTRACT: If the guaranteed value of the contract is $25M or less the release fee will be 20% of the guaranteed value of the contract, if the guaranteed value of the contract is $50M or less but more than $25M the release fee will be 20% of the guaranteed value of the contract up through the first $25M and 17.5% of the guaranteed value of the contract for any amount above $25M, and if the guaranteed value of the contract is more than $50M the release fee will be 20% of the of the guaranteed value of the contract for the first $25M, 17.5% of the guaranteed value of the contract for the second $25M, and 15% of the guaranteed value of the contract above $50M. In addition, the MLB club must pay 15% of the value of any bonus earned, salary escalator, and/or option exercised over the length of the contract.
MINOR LEAGUE CONTRACT: The release fee is 25% of the signing bonus, and the MLB club must pay a supplemental fee if the player is subsequently added to the club's MLB reserve list (40-man roster) and is tendered a Major League contract (see "MAJOR LEAGUE CONTRACT" above).
4. The bidding closes at 5 PM (Eastern) on the 4th day following the posting notification. Any interested MLB club may submit a sealed (secret) bid to the MLB Commissioner prior to the deadline. There is no limit on the amount an MLB club may bid. Once the deadline has passed, the MLB Commissioner advises the KBO club if any bids were received, and if so, the amount of the winning bid, but not the identity of the club that submitted it. The KBO club then has three days to decide whether to accept the winning bid. If the KBO club accepts the bid, the MLB club that submitted the highest bid is awarded exclusive negotiation rights to the posted KBO player, but beginning with the post-2022 off-season, the club can negotiate with the player for no more than 45 days (was 30 days post-2018 off-season through post-2021 off-season).
NOTE: Prior to the post-2018 off-season, - ANY - MLB club willing to pay the release fee could negotiate with the KBO player during a 30-day period starting on the day after the player was posted.
5. If an MLB club signs a posted KBO player within the 45-day "window," the KBO club receives the release fee from that MLB club. (The release fee is not considered when calculating the MLB club's payroll).
NOTE: Beginning with the post-2018 off-season, if an MLB club signs a posted KBO player, the KBO club receives the designated release fee from that MLB club. The release fee can be paid in installments over an 18-month period, with the MLB club required to pay 50% of the release fee within 14 days of the submission of the posted player's contract, 17% of the release fee within six months of the submission of the posted player's contract, 17% of the release fee within 12 months of the submission of the posted player's contract, and 16% of the release fee within 18 months of the submission of the posted player's contract. (The release fee is not considered when calculating the MLB club's payroll).
6. If a KBO player does not sign with an MLB club within 45 days after being posted, the KBO club does not receive the release fee, and the player cannot be posted again until the next November 1st (unless he becomes an unrestricted free-agent in the meantime).