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

Recent comments

Subscribe to Recent comments
The first 600 characters of the last 16 comments, click "View" to see rest of comment.
  • crunch 45 min 14 sec ago (view)

    d.ross meets the media at winter meetings...video/audio

    https://www.pscp.tv/w/1ypKdBvlvzyJW

     

  • jdrnym 5 hours 2 min ago (view)

    Hey AZPhil, when a player is released with money/years still remaining on his contract, does his next team *have* to give him the prorated major league minimum or can they offer more (meaning the original club owes less) to "outbid" other teams that may have had interest? I'm assuming that's what happened with Brad Brach, where the Mets signed him for 2020 at $850,000.

     

  • crunch 5 hours 45 min ago (view)

    jeremy jeffress agrees.

     

  • Rob Richardson 9 hours 27 min ago (view)

    It's high time if you ask me.

     

  • crunch 9 hours 43 min ago (view)

    as awesome as bryant is, it would probably be good for the cubs to find him a new home before his play at 3rd turns him into a corner OF'r...which seems inevitable sooner than later.

    i'm still impressed how much his D improved since he was drafted, but he's already losing a step at the position early in his career.

     

  • crunch 9 hours 49 min ago (view)

    minor league ballplayers will no longer have to worry about getting suspended for testing positive for weed...it's off the prohibited substances list.

    about time.

     

  • Arizona Phil 20 hours 1 min ago (view)

    3B Alec Bohm and RHSP Spencer Howard would likely be the Cubs asking price and the Phils probably say no, but if they don't say no, that could be a deal. 

     

  • crunch 23 hours 24 min ago (view)

    Bruce Levine @MLBBruceLevine
    Cubs have had talks with Phils on Bryant. Nothing there at the moment. Service time grievance still an issue.

     

  • bradsbeard 1 day 7 sec ago (view)

    Humerous 30 minutes this morning when both Mark Gonzalez and Gordon Wittenmyer tweeted out that the Cubs would be receiving Conor Lillis-White as the PTBNL in the Tommy La Stella trade as if it were just now happening. 

     

  • crunch 1 day 22 hours ago (view)

    marvin miller and ted simmons are part of the next HOF class.

    long time coming for miller.

     

  • crunch 2 days 3 hours ago (view)

    things that are important to good on-field play like buying up all the property around wrigley field, from rooftops to acerage, isn't going to monetize itself.

    i know some people would love to have a top tier pitcher, but i'm looking forward to more control of rooftop advertising and an open air beer garden near the team owned hotel and resturant complexes.

    i know some people want a solid leadoff man, but i'm looking forward to seeing 10-20 concerts on off-days destroying the playing field so that extra revenue can help a polician in Nebraska or Iowa get some ad buys.

     

  • Hagsag 2 days 4 hours ago (view)

    Their friend Donald will come through for them.

     

  • crunch 2 days 4 hours ago (view)

    remember when the billionaire owners got a huge double digit tax cut?

    maybe the city should do them a favor and give them more tax savings help to let them buy and build another 2-3 revenue projects outside of the park.  that might help these struggling heroes find some extra loot.

    i know this rant isn't fair, but my "dan winkler got a MLB contract fever" is dying down a bit.

     

  • crunch 2 days 4 hours ago (view)

    f'real.  i don't even know why they're going to bother playing games.  i'm over here printing Cubs 2020 World Series Champs banners while others are sleeping on reality.

     

  • Dolorous Jon Lester 2 days 6 hours ago (view)

    Just saw a fun report that the Cubs are telling even budget type free agents they can't currently negotiate until they clear some payroll. So that's a fun start to the winter meetings.

     

  • Dolorous Jon Lester 2 days 6 hours ago (view)

    I'm with you 100% on that. Minor league retreads are fine and all but we don't need to be paying premiums for middle relief.