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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  • crunch 1 min 4 sec ago (view)

    the cubs were searching car seats for coins to sign the scraps they managed to get this offseason.  i imagine doing everything "in house" might be on the table.

    the ricketts will need all the money they can spare to dump into GOP elections, too.  priorities.  btw, yes the family has been dumping 100s of thousand (to the tune of millions combined) over the past few months into state elections in areas they don't live in.  wisconsin, nevada, new york, georgia, etc...millions...many millions of dollars all over the country.

     

  • Arizona Phil 27 min 49 sec ago (view)

    jdrnym: Once the MLB regular season starts, the "Practice Squad" will be a sub-group of the Club Player Pool, as will be the MLB Active List roster and the various MLB injured lists. 

     

  • jdrnym 29 min 2 sec ago (view)

    All makes sense, but I think there is one important point of clarification in there -- are you using "practice squad" and "Club Player Pool" interchangeably? If so, I understood the first sentence of your third-to-last paragraph above to mean that Mills/Sadler/Underwood could be outrighted and still be in the Pool, therefore retaining their eligibility to re-selected to the major league active roster later in the season.

     

  • Arizona Phil 29 min 16 sec ago (view)

    jdrnym: Zack Short is still on Optional Assignment to the minors (as are Alzolay, M. Amaya, R. Garcia, Maples, T. Miller, Norwood, Rea, M. Rodriguez, and Steele), but he can be recalled at any time without restriction (no "ten-day rule") because he was optioned to the minors prior to the transaction freeze in March. 

     

  • crunch 40 min 35 sec ago (view)

    angels are missing 10-ish players from today's workout and mike trout isn't sure he'll participate this year (pregnant wife, newborn on the way).  welcome to the angels, maddon.

     

  • Hagsag 10 hours 16 min ago (view)

    Are ther any FA starting pitchers that would be an addition to take a starting spot?

     

  • QuietMan 22 hours 29 sec ago (view)

    I'm thinking players should demand that this be added to their list.  "Sorry Honey, can't do it."

    Thanks Phil.

     

  • crunch 23 hours 1 min ago (view)

    or washing the dishes turns out to be popping wheelies on a motorcycle riding around scottsdale...

    jeff kent deserves to be in the HOF...lou whitaker needs to get in first...

     

  • Arizona Phil 1 day 42 min ago (view)

    Q-MAN: Yes, unless "washing the dishes" is listed as a forbidden off-field activity in his contract 

     

  • crunch 1 day 1 hour ago (view)

    oh boy...chatwood and a.mills in the rotation...because the minor league system sure as hell don't have much to offer for competition.

     

  • QuietMan 1 day 1 hour ago (view)

    Non Baseball related injury.  Does he still get paid?

     

  • Ryno 1 day 2 hours ago (view)

    A digital nerve sounds like something that would be repaired with a copper wire and solder.

     

  • Cubster 1 day 2 hours ago (view)

    Per Sun-Times: Jose Quintana out two weeks after cutting a digital nerve in his pitching  left thumb and requiring microsurgery to repair the nerve, from a kitchen dishwashing accident last week. Hard to say what impact that might have on his repertoire. The sensation can take 2-3 months to return if the repair is successful.

     

  • crunch 1 day 20 hours ago (view)

    the toles update is worse than his troubled past.  toles has been diagnosed bipolar + schizophrenia and has been in/out of institutions over the past couple years.  he can't seem to stick to any program long enough to get good treatment.

    hope he turns whatever corner he needs to in order to get enough treatment to decide what kind of future he'd like to have.

     

  • Dolorous Jon Lester 1 day 23 hours ago (view)

    Those two are definitely on more precarious ground once the roster is trimmed to 26, I would say.

     

  • jdrnym 1 day 23 hours ago (view)

    Right, just went through the roster quick. Underwood, Sadler, same deal.