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!

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In reply to by Hagsag

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. 

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. 

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In reply to by Arizona Phil

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. 

Cubs MLB Roster

Cubs Organizational Depth Chart
40-Man Roster Info

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37 players are on the MLB RESERVE LIST (three slots are open)  

Last updated 11-18-2022
 
* bats or throws left
# bats both

PITCHERS: 20
Adbert Alzolay
Javier Assad 
Ben Brown
Jeremiah Estrada
Kyle Hendricks
Codi Heuer 
* Brandon Hughes
Ryan Jensen
Caleb Kilian 
Mark Leiter Jr
Ethan Roberts 
Manuel Rodriguez
Michael Rucker
Adrian Sampson
* Justin Steele 
Marcus Stroman
Keegan Thompson
Erich Uelmen 
Hayden Wesneski
Rowan Wick

CATCHERS: 3 
Miguel Amaya
Yan Gomes
P. J. Higgins 

INFIELDERS: 8
Rylan Bannon 
Nico Hoerner
Nick Madrigal
* Miles Mastrobuoni
* Zach McKinstry
Christopher Morel
* Alfonso Rivas
Patrick Wisdom

OUTFIELDERS: 6
Kevin Alcantara 
Alexander Canario
Brennen Davis
# Ian Happ
Seiya Suzuki 
Nelson Velazquez

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Rule 5 Draft 
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