2018 MLB Contract Tender Day Tomorrow
12/1 UPDATE: The Cubs have tendered 2018 contracts to 27 of the 29 unsigned players on their MLB reserve list (40-man roster).
RHRP Hector Rondon and C-1B-3B Taylor Davis were non-tendered and are now unrestricted free-agents, free to sign a 2018 major league or minor league contract with any club (including the Cubs).
Rondon could not be tendered a 2018 contract with a salary less than $4.64M (and that's with the maximum 20% cut from his 2017 salary), but he was likely to get somewhere north of $6M if he had taken the Cubs to an arbitration hearing, and the Cubs obviously weren't interested in going there. Now that he has been non-tendered, Rondon's 2018 salary is no longer restricted by the maximum 20% cut rule, so the Cubs (or any other club) could sign him for any amount (but no less than the MLB minimum salary if it's a major league contract).
It's very possible that the Cubs will try and re-sign T. Davis to a minor league contract (for MLB "split contract money" and an NRI to Spring Training), preferably after the MLB Rule 5 Draft a week from Thursday. Because T. Davis was an MLB Rule 6 Draft Excluded Player, he could not be sent outright to the minors during the off-season.
So the Cubs MLB reserve list now stands at 34 (six slots are open).
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11/30 ORIGINAL POST:
LHRP Dario Alvarez (a post-2017 minor leaguer 6YFA who was signed to a 2018 Major League contract by the Cubs yesterday), OF Jason Heyward (signed through 2023 with player opt-out options post-2018 and post-2019), LHSP Jon Lester (signed through 2020 with an automatic vesting option or else club option for 2021), LHSP Jose Quintana (signed through 2018 with club options for 2019 and 2020), 1B Anthony Rizzo (signed through 2019 with club options for 2020 and 2021), RHRP Pedro Strop (signed through 2018 with a club option for 2019) , and IF-OF Ben Zobrist (signed through 2019) are the only players on the Cubs MLB Reserve List (40-man roster) who are signed for 2018, so the Cubs have until 8 PM (Eastern) tomorrow (Friday 12/1) to decide whether to tender contracts to the 29 unsigned players on their 40-man roster.
Contract Tender Day is unique in that it is the one day during the year when an unsigned player under club control (that is, not an MLB Article XX-B free-agent) can be removed from a club's MLB 40-man roster without exposing the player to Outright Assignment or Outright Release waivers.
Non-tendering an unsigned player and then re-signing him either to a major league or minor league contract is the one way a club can cut a player's salary more than the maximum-allowable 20% from the player's previous-season's salary. This is often the way a club will remove an injured unsigned player (or rehabbing player) or a player who is out of minor league options from the 40, while still retaining the player on a minor league contract for the next season.
This time last year the Cubs took advantage of the opportunity and non-tendered four players: LHRP Gerardo Concepcion (to remove him from the 40-man roster and cut his 2016 $1M salary more than 20%), RHRP Conor Mallee (to remove him from the 40 while he continued his rehab from ulnar nerve surgery), LHRP Zac Rosscup (to remove him from the 40 while he continued shoulder surgery rehab), and 3B Christian Villanueva (out of minor league options and not likely to make the Cubs MLB Opening Day 25-man roster, but valued as AAA depth for 2017). As it turned out, Concepcion, Mullee, and Rosscup re-signed with the Cubs (all three signed 2017 minor league contracts), while Villanueva signed a 2017 minor league deal with the San Diego Padres (where he felt he would have a better chance to get to the big leagues).
Contract Tender Day is also the one day during the off-season when a player who cannot (by rule) be outrighted to the minors during the off-season (all players with MLB Rule 6 Draft-Excluded status and unsigned players with MLB Rule 55 Player status) can be removed from the 40 (and then possibly be re-signed to a minor league contract, preferably after the conclusion of the MLB Rule 5 Draft). Players in this class would include C-1B-3B Taylor Davis (Draft-Excluded Player) and LHRP Randy Rosario and RHRP Cory Mazzoni (both MLB Rule 55 players)
The approach of Contract Tender Day can also serve as an impetus to immediately sign - or else TRADE - an arbitration-eligible player the club may not want to risk facing in an arbitration hearing (like RHRP Hector Rondon, RHRP Justin Grimm, and/or LHRP Justin Wilson).
ROSTER STATUS OF UNSIGNED PLAYERS ON MLB RESERVE LIST (40-MAN ROSTER):
After the conclusion of the MLB season, only those players on a club's MLB Reserve List (40-man roster) who have contracts for the following season are considered "signed players," but the other players on the 40-man roster are still under club control (they are "reserved").
Unsigned players on an MLB club's Reserve List (40-man roster) would include any player who was added to an MLB Reserve List (40-man roster) after the conclusion of the MLB regular season, any player who can have his contract unilaterally renewed by his club, any player who is eligible for salary arbitration, and any player eligible to be an MLB free-agent per Article XX-B of the CBA.
TENDERING CONTRACTS TO UNSIGNED PLAYERS ON MLB RESERBE LIST (40-MAN ROSTER)
If an unsigned player is not tendered a contract by 8 PM (Eastern) on December 2nd (or December 1st if December 2nd falls on a Saturday, or November 30th if December 2nd falls on a Sunday), the player is said to be "Non-Tendered," he is immediately removed from his club's MLB 40-man roster, and he becomes an unrestricted free-agent, free to sign a major league or minor league contract with any club, including the club that non-tendered the player. A "Non-Tendered" player receives no termination pay, and the player's former club receives no compensation if the player subsequently signs with another club.
Each unsigned player on an MLB 40-man roster who is tendered a contract must be offered at least the MLB minimum salary ($535K in 2017, $555K in 2018, and $575K in 2019) and (with a couple of exceptions) at least 80% of the player's previous season's salary, and at least 70% of the player's salary from two seasons back.
Some players have a "minor league split" salary in their contract which they are paid if they are sent to the minors. In most cases, a player's minor league "split" salary must be at least 50% of the player's salary (as was actually paid to the player) from the previous season. The one exception is if a free-agent signs a major league contract with a minor league "split" salary, the "50% rule" does not apply
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.
TENDERING CONTRACTS TO UNSIGNED PLAYERS ELIGIBLE FOR SALARY ARBITRATION:
An unsigned player under club control who has accrued at least three but less than six years of MLB Service Time is automatically eligible for salary arbitration. Also, any unsigned player with at least two years but less than three years of MLB Service Time who accrued at least 86 days of MLB Service Time the previous season can qualify for salary arbitration as a so-called "Super Two" if the player is among the top 22% in MLB Service Time of players in that group.
The "Super Two" cut-off for 2018 (post-2017) is 2+123,
CUBS SALARY ARBITRATION ELIGIBLE PLAYERS POST-2017: (last updated 11-6-2017)
Kris Bryant, INF ("Super Two")
Justin Grimm, RHP
Kyle Hendricks, RHP
Tommy LaStella, INF
Hector Rondon, RHP
Addison Russell, INF ("Super Two")
Justin Wilson, LHP
If a club and a player eligible for salary arbitration cannot agree on a contract, the player can request the Major League Baseball Players Association (MLBPA) to file for salary arbitration. The MLBPA is responsible for delivering all requests for salary arbitration to the MLB Labor Relations Department (MLB LRD) on the Tuesday immediately prior to the Friday that falls during the week January 10-16. Once salary arbitration has been requested, the player submits his desired salary to the MLBPA, the club submits its salary offer to the MLB LRD, and the MLBPA and MLB LRD exchange the two figures on the Friday that falls during the week January 10-16. The MLBPA and MLB LRD then schedule a hearing with a three-person arbitration panel. Hearings are held on various dates during the first three weeks of February.
The club's offer must be at least the MLB minimum salary, and, in most cases, must be at least 80% of the player's previous year's salary and at least 70% of the player's salary from two seasons back. However, if the player received a raise in excess of 50% by a salary arbitration panel the previous season, a 20% maximum salary reduction from the previous season and a 30% maximum salary reduction from two seasons back does not apply, and the club only has to offer at least the MLB minimum salary.
After arbitration has been requested, the player and the club can continue to negotiate back & forth, and the player can withdraw from the process any time up until the hearing. And in fact this frequently happens, as the player and the club will often agree to just "split the difference" (something the panel cannot do). If the matter does go to a hearing, the arbitration panel must choose either the club's offer or the player's figure.
Win or lose, the player is awarded a standard one-year MLB contract with no "minor league split" salary or incentive/performance bonuses. Also, the contract is not guaranteed, so if the player is released during Spring Training, the club would only owe the player 30 days or 45 days salary as termination pay, depending on when the player is released. (A player on an MLB 40-man roster receives 100% of what remains of his salary if he is released during the regular season).
NOTE: The Major League Baseball Players Association (MLBPA) is very sensitive about salary arbitration, so if a player is victorious at an arbitration hearing and is awarded a contract by an arbitration panel and then is subsequently released by his club prior to or during Spring Training, the MLBPA will almost always file a grievance on behalf of the player, claiming the player was released for economic reasons only (which is not permitted), and asking that the released player receive 100% of his salary as termination pay. In that situation, a club would have to show (by submitting official Spring Training game stats) that the released player was out-performed in Spring Training games by another player (or players) competing for that roster spot.
TENDERING CONTRACTS TO PLAYERS NOT YET ELIGIBLE FOR SALARY ARBITTRATION:
An unsigned player under club control who does not yet qualify for salary arbitration ultimately has to either accept the club's offer or just not play.
A club will negotiate with the player up to a point, but if the player has not signed a contract for the current season by March 1st, the club has the right to unilaterally dictate the player's salary and renew the player's contract from the previous season (albeit for an amount not less than the MLB minimum salary, and not less than 80% of the player's salary from the previous season and not less than 70% of the player's salary from two season's back).
These players are the ones who have a "minor league split" salary in their contract, which the player is paid if he is sent to the minors. A player's "minor league split" salary must be at least equal to the 2018 MLB "minor league split" minimum salary and must be at least 50% of the player's salary from the previous season.
NOTE: If a free-agent signs a major league contract with a minor league "split" salary, the "50% rule" does not apply.
CUBS PRE-ARBITRATION/AUTO-RENEWAL PLAYERS POST-2017 (last updated 11-30-2017)
Albert Almora, Jr, OF
Dario Alvarez, LHP (free-agent signed by Cubs 11-29-2017)
Adbert Alzolay, RHP
Javy Baez, INF
David Bote, INF
Eddie Butler, RHP
Victor Caratini, C
Willson Contreras, C
Taylor Davis, C-1B
Oscar de la Cruz, RHP
Carl Edwards, Jr, RHP
Luke Farrell, RHP
Ian Happ, IF-OF
Dillon Maples, RHP
Cory Mazzoni, RHP
Alec Mills, RHP
Mike Montgomery, LHP
Randy Rosario, LHP
Kyle Schwarber, OF-C
Jen-Ho Tseng, RHP
Duan Underwood Jr, RHP
Mark Zagunis, OF
Rob Zastryzny, LHP
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