Changes to MLB Roster Rules in 2017

Along with the new CBA, there have been several changes to MLB roster rules this year, some of which you may already be aware, and some you might not know about... 

+ The MLB waiver price was increased from $20,000 to $50,000: 

+ Rule 5 Draft price was increased from $50,000 to $100,000 in Major League Phase and from $12,000 to $24,000 in the AAA Phase, and the AA Phase was eliminated; 
 
+ The price to re-claim a player selected in the Rule 5 Draft was increased from $25,000 to $50,000 (same as the MLB waiver price); 
 
+ Optional Assignment Waivers were eliminated; 
 
+ Designated For Assignment (DFA) period was reduced from ten days to seven days; 

+ A player can be placed on the MLB 10-day DL (formerly the 15-day DL) no earlier than the third day prior to MLB Opening Day, and a player can be placed on the MLB 7-day (acture concussion) DL no earlier than four days prior to MLB Opening Day. As long as the player did not appear in a game during the retroactive period, an MLB 10-day DL assignment can be backdated up to three days, and a 7-day DL (acute concussion) assignment can be backdated up to four days. If a player on an MLB 7-day (acute concussion) FL is not reinstated after spending ten days on the list, he is automatically transferred to his club's 10-day DL. 

+ Per Article XIX-C of the CBA and with the player's consent, a player on the MLB 10-day or 60-day DL may be assigned to a minor league club for rehabilitation purposes for up to 20 days (for position players) and up to 30 days (for pitchers), and a player on an MLB 7-day DL (acute concussion) may be assigned to a minor league club for rehabilitation purposes up to five days (for position players) and up to eight days (for pitchers).

+ With approval of the MLB Commissioner, a player who has undergone elbow UCL reconstruction surgery (so-called "Tommy John Surgery") may have his Minor League Rehab Assignment renewed for up to 30 additional days (in the form of three ten-day renewals).

+ With approval of the MLB Commissioner, if a player incurs a new (different) injury or illness or suffers a recurrence of the previous injury or illness while on a Minor League Rehab Assignment, the player must be recalled from his Rehab Assignment and remain inactive for at least five days (for position players) or seven days (for pitchers) before starting another Minor League Rehab Assignment. 

+ The deadline to sign a player selected in the MLB First-Year Player Draft was moved up a week; 

+ Once notified that he is being outrighted to the minors, a player eligible to elect free-agency if sent outright to the minors must make his decision whether to accept or decline the assignment within three days if he is outrighted during the off-season, or within two days if he is outrighted during Spring Training or during the MLB regular season.(used to be seven days to decide if he was outrighted during the off-season and three days to decide if he was outrighted during Spring Training or during the MLB regular season).  

+ MLB minimum salary is $535K in 2017, $555K in 2018, and $575K in 2019, the minor league "split" minimum salary is $87,200 in 2017, $88,900 in 2018, and $90,400 in 2019, and the minor league "split" minimum salary for players who are on an MLB Reserve List for the first time is $43,600 in 2017, $44,500 in 2018, and $45,300 in 2019.

+ The deadline for a player on an MLB Reserve List (40-man roster) to file for salary arbitration was moved-up a week; 

+ Beginning in September 2017, trades (both MLB and minor league) will now be prohibited over the final seven days of the MLB regular season (startring at 12 PM Eastern on the 7th day prior to the conclusion of the MLB regular season); 

+ Outright Assignment Waivers can no longer be requested on the final weekend (Saturday & Sunday) of Spring Training leading up to MLB Opening Day;   

+ Beginning in 2017, Competitive Balance draft picks can be traded beginning on December 2nd up until two hours before the First-Year Player Draft; 
 
+ A player who received a Prohibited Substance Suspension prior to the start of Spring Training, during Spring Training, during the regular season, or during a post-season series (Wild Card, LDS, LCS, or World Series), is ineligible to play in any MLB or minor league post-season game(s) or series in that season, even if the player has completed serving the suspension.

+ A post-season eligible player who is injured during a post-season series (LDS, LCS, or World Series) can (with the approval of the MLB Commissioner) be replaced during the series by another player, but the injured player is ineligible to be reinstated to his club's Active List (25-man roster) for the balance of that series and the next series (LCS or World Series). Also, a pitcher must replace a pitcher and a position player must replace a position player. However, it is NOT necessary for a catcher to replace a catcher, an infielder to replace an infielder, or an outfielder to replace an outfielder. NOTE: Beginning in 2017, if the injured player suffered an acute concussion, the injured player is eligible to be reinstated to his club's Active List after seven days even if the next post-season series is still in progress.   

+ Beginning with 2017 post-season, a "26th man" (catcher) can be added to a post-season roster at the start of a post-season series (LDS, LCS, and World Series only) to replace a catcher on the 7-day concussion DL and then the injured catcher can be reinstated and replace the 26th man during that same post-season series (he doesn't have to wait until the next series) once he has spent seven days on the DL;

+ A post-season eligible player who is placed on the Bereavement/Family Medical Emergency List or on the Paternity List during a post-season series can (with approval of the MLB Commissioner) be replaced by another player (a pitcher must replace a pitcher and a position player must replace a position player), as long as the absent player is reinstated after no more than seven days (for a player on the Beareavement/Family Medical Emergency List) or no more than three days (for a player on the Paternity List). If the series ends before the player is reinstated, he will automatically be reinstated prior to the next series, even if he has not returned to his club. NOTE: The absent player is not eligible to be replaced during a series if the player is a pitcher who has started a game in the series unless he has not pitched in a game for at least three days.  

+ Beginning with the 2017 off-season, a player can receive no more than one Article XX-B free-agent Qualifying Offer in his career. 

+ Beginning with the 2017 off-season, an Article XX-B MLB free-agent will have ten days (up from seven days) to decide whether to accept a Qualifying Offer; 

+ Beginning in 2018, the MLB regular season will be expanded from 183 to 187 days to accommodate more off-days, and Spring Training will be shortened by two days. However, 172 days will continue to constitute a "full season" for purposes of caculating MLB Service Time (a player can accrue no more than 172 days of MLB Service Tinme in any one season). .   

+ Beginning with the post-2017 off-season (and the 2018 MLB Rule 4 Draft), a club losing a Qualified Player will receive a compensatory draft pick between the 2nd & 3rd rounds (after Competitive Balance Round "B"), and an MLB club that is a Competitive Balance Tax (CBT) payor (club's payroll exceeds the so-called "Luxury Tax") would receive a draft pick between the 4th & 5th rounds. (The Competitive Balance Tax threshold will be $195M in 2017, $199M in 2018, $206M in 2019, $209M in 2020, and $210M in 2021). In addition, an MLB club that receives revenue sharing funds will receive a compensatory draft pick immediately after the conclusion of the 1st round (prior to Competitive Balance Round "A") if the Qualified Player signs a contract worth at least $50M (the club would receive a compensatory draft pick between the 2nd & 3rd rounds and after Competitive Balance Round "B" if the Qualified Player signs a contract worth less than $50M).

+ Beginning with the post-2017 off-season (and the 2018 MLB Rule 4 Draft), an MLB club that signs a Qualified Player forfeits its 2nd highest selection in the draft and $500,000 is subtracted from its assigned International Signing Bonus Pool (ISBP) in the next full International Signing Period (ISP), an MLB club that receives revenue sharing funds would surrender its 3rd highest selection in the draft but nothing is subtracted from the club's ISBP in the next full ISP, and an MLB club that is a CBT payor (club's payroll exceeds the so-called "Luxury Tax") would forfeit its 2nd & 5th selection in the draft and have $1,000,000 subtracted from its ISBP in the next ISP. (The Competitive Balance Tax threshold will be $195M in 2017, $199M in 2018, $206M in 2019, $209M in 2020, and $210M in 2021). Also, the next highest draft pick (or draft picks) will be forfeited if a club signs more than one Qualified Player (one draft pick forfeited for each Qualified Player signed). and a CBT payor (club's payroll exceeds the so-called "Luxury Tax") would forfeit its 3rd & 6th highest selections if the club signs a second Qualified Player, its 4th & 7th selections if the club signs a third Qualified Player, and its 8th & 9th highest selections, 10th & 11th highest selections, et al, for additional Qualified Players signed.

+ THE FOLLOWING CHANGES WILL TAKE EFFECT BEGINNING WITH THE 2017 MLB RULE 4 DRAFT: 

Competitive Balance draft picks will no longer be awarded by lottery. Rather, all clubs who qualify (the ten smallest market clubs and the ten lowest revenue clubs) will receive Competitive Balance draft picks in either Competitive Balance Round "A" (between the 1st & 2nd round) or in Competitive Balance Round "B" (between the 2nd & 3rd rounds), with each club alternating between the two rounds every-other year.

+ THE FOLLOWING CHANGES WILL TAKE EFFECT BEGINNING WITH THE 2018 MLB RULE 4 DRAFT:

1. Article XX-B Qualified Player Compensation draft picks will be slotted between the 2nd & 3rd rounds of the draft (immediately after Competitive Balance Round "B"), or between Rounds 1 & 2 (immediately prior to Competitive Balance Round "A") for any club receiving revenue sharing funds that loses a Qualified Player who signs a major league contract worth more than $50M, or between rounds 4 & 5 for Competitive Balance Tax payors (club's payroll exceeds the so-called "Luxury Tax"). NOTE: The Competitive Balance Tax threshold will be $195M in 2017, $199M in 2018, $206M in 2019, $209M in 2020, and $210M in 2021. 

2. An MLB club that signs a Qualified Player forfeits its 2nd highest selection in the draft and $500,000 is subtracted from its assigned International Signing Bonus Pool (ISBP) in the next full International Signing Period (ISP), an MLB club that receives revenue sharing funds would surrender its 3rd highest selection in the draft but nothing is subtracted from the club's ISBP in the next full ISP, and an MLB club that is a CBT payor (club's payroll exceeds the so-called "Luxury Tax") would forfeit its 2nd & 5th selection in the draft and have $1,000,000 subtracted from its ISBP in the next ISP. 

3. A club's next-highest draft pick (or draft picks) subject to forfeiture will be forfeited if a club signs more than one Qualified Player. 

4. Competitive Balance draft picks will no longer be subject to forfeiture.  

5. Any club with a payroll $40M or more above the Competitive Balance Tax threshold will have its highest draft selection moved down ten slots, unless its first selection is among the top six picks in the draft, in which case it will have its second-highest draft slot moved down ten slots. (In determining whether a club would forfeit its 1st round draft pick, the six "protected" picks at the top of the 1st round would NOT include any compensation draft pick received by a club for failing to sign a 1st round draft pick from a previous draft -- these compensatory draft picks are already "protected").Beginning with the 2018 MLB First-Year Player Draft (Rule 4 Draft), Competitive Balance draft picks will no longer be subject to forfeiture;  

+ Beginning with the 2018 MLB Rule 4 Draft, Article XX-B Qualified Player Compensation draft picks will be slotted between the 2nd & 3rd round of the draft (immediately after Competitive Balance Round "B"), between Rounds 1 & 2 (prior to Competitive Balance Round "A") for any club receiving revenue sharing funds that loses a Qualified Player who signs a major league contract worth more than $50M, and between rounds 4 & 5 for Competitive Balance Tax payors (club's payroll exceeds the so-called "Luxury Tax").

+ Beginning with the 2017 MLB First-Year Player Draft (Rule 4 Draft), Competitive Balance draft picks will no longer be awarded by lottery. Rather, all clubs who qualify (the ten smallest market clubs and the ten lowest revenue clubs, some of which are the same club) will receive Competitive Balance draft picks in either Competitive Balance Round "A" (between the 1st & 2nd rounds) or in Competitive Balance Round "B" (between the 2nd & 3rd rounds), with each club alternating between the two rounds every-other year.

+ Beginning in 2018, Rule 4 SBP Forfeited draft picks can be traded, but only during a period of time extending beginning on December 2nd up until two hours prior to the MLB First-Year Player Daft (MLB Rule 4 Draft), and the pick cannot be traded for cash unless it is a financial adjustment made to offset the salary of one or more of the players involved in the trade. Also, a Rule 4 forfeited draft pick can be traded only once (only by the club that was awarded the pick). Once traded, the pick cannot be "flipped" to a third club. If a club that is awarded a Rule 4 SBP Forfeited Draft pick subesquently exceeds its SBP, the pick will be forfeited and another lottery will be held (date and time TBA by the MLB Commissioner) to alllocate the pick to another club. If a club trades a Rule 4 Forfeited Draft pick to another club, it cannot subsequently sign a player subject to the club's Rule 4 SBP if signing the player causes the club to exceed its SBP.  

+ Beginning in 2017, a high school player eligible for selection in the MLB First-Year Player Draft (Rule 4 Draft) may elect (in advance) to have his name removed from draft eligibility in that particular Rule 4 Draft.

+ Beginning with the 2017-18 International Signing Period (ISP), a signing bonus paid to a first-year international player age 25 or older who has spent all or part of at least six seasons playing in an MLB-recognized foreign professional or "major" league does not count against the club’s ISBP (used to be players age 23 or older).  

+ Beginning in 2017, the MLB Commissioner can order a club to forfeit up to 50% of its assigned ISBP from one or more ISP and/or one or more player contract(s) can be voided if it is determined that a club and/or a player or players attempted to circumvent the international signing bonus rules.

+ Beginning with the 2017-18 ISP, a club can trade up to 100% of its ISBP, and a club can acquire up to 75% of the club's assigned ISBP via trade. (A club can acquire up to 60% of its assigned ISBP via trade or trades beginning with the 2019-20 ISP).  Up to 100% of a club's originally-assigned ISBP (plus up to an additional 75% of the club's originally-assigned ISBP that might be acquired in a trade or trades) can be traded, but with some restrictions:

1. A club's ISBP (or a portion of it) can only be traded during the International Signing Period (ISP) to which the ISBP was assigned (July 2nd through June 15th of the following year);

2. A club's ISBP (or a portion of it) 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. A club's ISBP (or a portion of it) cannot be substituted for a "Player to Be Named Later" (PTBNL);

4. Another club's ISBP (or a portion of it) acquired in a trade can be traded ("flipped") to a third club.

There is a maximum limit on the aggregate amount of money each MLB club can pay as signing bonuses to international first-year players. Beginning with the 2017-18 International Signing Period (ISP), a club cannot exceed its assigned International Signing Bonus Pool (ISBP) plus a maximum additional 75% of the club's assigned ISBP that might be acquired in a trade or trades (a maximum additional 60% of its assigned ISBP that might be acquired via trade or trades starting with the 2019-20 ISP). 

Through the 2016-17 ISP, a tax and a restriction on bonuses that could be paid to international players during the next ISP were assessed if a club paid signing bonuses in excess of its ISBP in a given ISP .

1. A club that paid signing bonuses that exceeded its ISBP by 5% or less was assessed a 75% tax on the ISBP overage, but there was no restrictions on bonuses in the next ISP.

2. A club that paid signing bonuses that exceeded its ISBP by 5-10% was assessed a 75% tax on the ISBP overage, and was permitted to sign only one international first-year player to a bonus of $500K or more in the next ISP.

3. A club that paid signing bonuses that exceeded its ISBP by 10-15% was assessed a 100% tax on the overage, and no player could be signed to a bonus of $300K or more in the next ISP. 

4. A club that paid signing bonuses that exceeded its ISBP by 15%+ was assessed a 100% tax on the overage, and no player could 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.  

NOTE: Despite changes in the 2016-21 CBA, penalties incurred by clubs in the 2015-16 and 2016-17 ISPs will continue in the 2017-18 and 2018-19 ISPs. Because they exceeded their 2015-16 ISBP by more than 15%, the Cubs are not 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 ISPs.