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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  • Dolorous Jon Lester 20 hours 4 min ago (view)

    I think, in relation to the higher profile guys like Javy or Contreras, they're trying to put some pressure on to sign extensions.

    That said I do think they're listening on everyone with the only name I haven't seen being Rizzo.

     

  • crunch 1 day 12 hours ago (view)

    i wonder where the cubs will go with things.

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    bryant, contreras, schwarber have all been linked to "cubs may be listening" rumors...probably listening to anything on happ, bote, almora, russell, too...

     

  • Hagsag 1 day 12 hours ago (view)

    Even the Cubs should be able to out bid the Marlins!

     

  • crunch 1 day 13 hours ago (view)

    "According to Joe Frisaro of MLB.com, the Marlins are "believed" to have interest in free agent outfielder Nicholas Castellanos."

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  • Arizona Phil 2 days 5 hours ago (view)

    Prior to joining the Cubs in 2012 Scott Harris was Director of Baseball Operations in the MLB office, which means he received, reviewed, and approved all major league and minor league contracts and transactions, as well as providing MLB clubs with schedules, rules updates, and draft information. 

     

  • Cubster 2 days 13 hours ago (view)

    Giants hire Scott Harris, from Cubs front office,  as GM

     

  • Charlie 3 days 15 hours ago (view)

    For anyone else who immediately wonders but is not invested enough to look it up, this is not Chris (Ryan) Young, former Padres starter and fisticuffs partner of Derrek Lee, but rather the two-years younger Chris Matthew Young.

     

  • crunch 4 days 3 hours ago (view)

    rev up those off-season rumor fryers...

    Jeff Passan @JeffPassan
    Multiple teams in search of catching help believe Cubs catcher Willson Contreras will be available this winter. The Cubs will get creative this winter, and with a deep catching free agent market, they could trade Contreras and begin retooling under new manager David Ross.

     

  • crunch 4 days 7 hours ago (view)

    former padres manager andy green is gonna be ross's bench coach.

    green was c.rea's manager in SD, btw.

     

  • Arizona Phil 4 days 13 hours ago (view)

    Last year the Cubs signed four free-agents to minor league contracts prior to the Rule 5 Draft: LHP Alberto Baldonado, OF Wynton Bernard, RHP Corey Black, and RHP Jose Rosario. All four were members of the Cubs organization in 2018 but declined to sign a 2019 minor league successor contract prior to being declared a free-agent, but then came back to the Cubs after briefly testing the free-agent waters. 

     

  • crunch 4 days 18 hours ago (view)

    chris young to be named new bullpen coach (former phillies pitching coach)

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  • crunch 5 days 11 hours ago (view)

    t.clifton straight up falling off a cliff sucked to watch happen last year.

    i had a lot of faith in the guy to at least hold his own in AAA, even if he needed another season or 2 after to get ready for prime time.

    he ended up giving out homers like candy on halloween while retaining his high walk and injury rate.

    that said, his career is far from done.  most likely many other teams willing to give him a minor league deal.

     

  • Arizona Phil 5 days 16 hours ago (view)

    Keep in mind that most free-agents who sign a 2020 minor league contract prior to the Rule 5 Draft are eligible for selection. (The only exception would be a free-agent who is not yet eligible for selection in the Rule 5 Draft, such as a player whose only previous pro experience was in a foreign major league or in an independent minor league, or a player who was released by another MLB organization but is still not yet eligible for selection in the Rule 5 Draft).  

     

  • Arizona Phil 5 days 16 hours ago (view)

    If you're wondering if players who sign minor league successor contracts ever get taken in the Rule 5 Draft, the answer is most definitely - YES -. 

    The Cubs selected RHP Hector Rondon in the 2012 Rule 5 Draft after the Indians signed him to a minor league successor contract, and the Baltimore Orioles selected RHP Pedro Araujo in the 2017 Rule 5 Draft after the Cubs signed him to a minor league successor contract. 

     

  • Hagsag 5 days 16 hours ago (view)

    Got to get Taylor Davis back.

     

  • Arizona Phil 5 days 16 hours ago (view)

    So the Cubs were ultimately able to retain five of their seven most-valuable post-2019 minor league free-agent eligibles (Rea, Pereda, de la Cruz, Lugo, and Burks), losing only Clifton and Leal (both of whom are probably looking for a fresh start in another organization after maybe feeling stalled in the Cubs system).