2020 Cubs MLB First-Year Player Draft Ticker-Tracker
7/31 UPDATE
CUBS 2020 MLB RULE 4 NDFA SIGNINGS:
Bradlee Beesley, OF
R/R, 5'10 180, Age 22
Cal Poly
COLLEGE SR
AREA SCOUT: Tom Myers
COMMENT: Speedy glove-first CF with enough arm to play RF... probably projects as a "4th OF" at the pro level... hit 286/352/380 with 4 HR & 91 RBI, 45 doubles, and 21 SB (eight CS) in 180 college games over the course of four seasons at Cal Poly...
Matt Burch, INF
L/R, 5'7 170, Age 22
Old Dominion U.
COLLEGE SR
AREA SCOUT: Billy Swoope
COMMENT: Plays 2B-3B but played mostly 2B in 2019-20... hit 282/351/350 with 2 HR & 32 RBI, 13 doubles, and 25/47 BB/K in 74 NCAA D-1 games (309 PA) over the course of three seasons.. graduated from Warren Township HS in Gurnee, IL... spent freshman season at U. of Arkansas and then transferred to Wabash Valley JC (hit 384/480/557 in 56 games) before landing at ODU...
Angel Gonzalez-Martinez, RHP/OF
R/R, 6'1 168, Age 17
Emilio R. Delgado HS (Corozal, PR)
HIGH SCHOOL
AREA SCOUT: Edwards Guzman
COMMENT: Two-way player in HS but projects as a pitcher (only) in pro ball... features a 94 MPH FB and a CH... had signed an NLI with Northwest Florida College (JC) before changing his mind and signing with the Cubs...
Scott Kobos, LHP
L/L, 6'2 200, Age 22
Coastal Carolina
5th YEAR COLLEGE (REDSHIRT SR)
AREA SCOUT: Tom Clark
COMMENT: Earned a spot in the Chanticleers 2020 starting rotation after a strong showing in fall ball and went 1-3 with a 5.59 ERA and 1.45 WHIP in five games (four GS) before the season was canceled... went 3-2 with a 6.61 ERA and 1.29 WHIP over the course of three seasons at CCU... was a two-way player (LF-LHP) prior to 2018... spent freshman year redshirting at UNC - Asheville... then transferred to St. John's River State College (JC) where he was the Vikings' Friday starter, going 6-3 with a 3.01 ERA, 23/68 BB/K, and 61 hits allowed in 71.2 IP for SJRSC in 2017... was selected by Cleveland Indians in 38th round of 2017 draft but did not sign... underwent elbow UCL transplant (TJS) in 2018...
Graham Lawson, RHP
R/R, 6'2 229, Age 24
U. of South Carolina
5th YEAR COLLEGE (REDSHIRT SR)
AREA SCOUT: Tom Clark
COMMENT: Bullpen piece but not a closer... went 3-2 with a 5.27 ERA, three saves, 26/53 BB/K, and .250 OppBA (nine HR allowed) in 41 career games (56.1 IP) for Gamecocks... was selected by Washington Nationals in 12th round of 2018 draft but did not sign... missed 2019 season after undergoing UCL transplant (TJS)... spent freshman year at Spartanburg Methodist College before transferring to South Carolina... was named to SEC Academic Honor Roll in both 2018 and 2019...
Ben Leeper, RHP
R/R, 6'0 194, Age 23
Oklahoma State
5th YEAR COLLEGE (REDSHIRT SR)
AREA SCOUT: Ty Nichols
COMMENT: Cowboys closer... went 4-4 with a 4.31 ERA and seven saves, 23/43 BB/K, and 24 hits (three HR) allowed in 29 games (31.1 IP) in 2019... was off to a strong start in 2020 (14 K in just 7.1 IP) before season was canceled... missed 2017 season after undergoing his second elbow UCL transplant (TJS).. . also underwent TJS in 2015... went 20-5 with a 1.15 ERA and was an honorable mention Perfect Game All-American in both his sophomore and junior years in HS...
Scott McKeon, INF
R/R, 6'0 185, Age 22
Coastal Carolina
COLLEGE SR
AREA SCOUT: Tom Clark
COMMENT: Hit 341/401/488 with 4 HR & 38 RBI, 18 doubles, five triples, and 22/55 BB/K in 62 games (284 PA) for Chanticleers in 2019.. After hitting just six HR in 133 college games through 2019 season, he clubbed four HR in 16 games in 2020 prior to season being canceled... spent two seasons at Brunswick CC prior to tranferring to Coastal Carolina... was selected first-team NJCAA Division II All-American at BCC in 2018... has the defensive skills necessary to play SS but probably projects more as a utility infielder at pro level... was selected in 21st round of 2019 draft by Detroit Tigers but did not sign...
Matt Mervis, 1B-3B/RHP
L/R, 6'4 225, Age 22
Duke
COLLEGE SR
AREA SCOUT: Billy Swoope
COMMENT: Two-way player... team captain... hit .278/380/456 with 9 HR & 46 RBI, 14 doubles, 31/56 BB/K and 13 HBP in 119 games (301 PA) as a position player and went 6-2 with a 5.49 ERA and 1.59 WHIP, .262 OppBA (four HR allowed), and 34/52 BB/K in 50 games (59.0 IP) as a pitcher in four seasons at Duke... was rated the #19 college senior by Perfect Game going into the 2020 college baseball season... led team in hits & HR and hit safely in all games played in 2020 prior to the season being canceled... selected in 39th round of 2016 draft by Washington Nationals out of Georgetown Prep but did not sign...
Sheldon Reed, RHP/OF
L/R, 6'3 205, Age 22
Clemson
5th YEAR COLLEGE (REDSHIRT SR)
AREA SCOUT: Keith Lockhart
COMMENT: Bullpen arm but not a closer... hit 448/508/697 with 11 HR & 47 RBI, six doubles, and 22/40 BB/K in 51 games as an OF at Spartanburg Methodist College in 2016-17... he was converted to a RHP in 2018 after transferring to Clemson... 6.00 ERA and 2.00 WHIP, with six hits allowed and 6/8 BB/K in just 6.0 IP for Tigers 2019-20...
Bailey Reid, RHP
R/R, 6'2 205, Age 21
Westmont College
COLLEGE SR
AREA SCOUT: Tom Myers
COMMENT: Warriors closer... hard to hit but has difficulty throwing strikes... did not allow an earned run in 2019 or in 2020 (22.1 IP) and held opponents to an .082 BA (combined) in 2019-20... went 3-1 with 13 saves, 45/78 BB/K, 9 HBP, 12 WP, and .103 OppBA (no HR allowed) in 41 games (47.2 IP) over the course of four seasons at Westmont...
Sam Thoresen, RHP
R/R, 6'3 210, Age 21
U. of Minnesota
COLLEGE JR
AREA SCOUT: John Pedrotty
COMMENT: A project... hard to hit but has much difficulty throwing strikes (85 BB in 91 IP in three years at Minnesota, and more walks than IP in two summers spent pitching in collegiate wood bat leagues)... went 6-6 with a 5.74 ERA, 85/118 BB/K, 16 HBP, nine WP, and a .196 OppBA (four HR allowed) in 34 games (19 GS) and 91 IP for Golden Gophers 2018-20... pitched in summer collegiate wood bat leagues in both 2018 and 2019... went 1-3 with a 5.66 ERA, 12 hits allowed, and 19/28 BB/K in 20.2 IP and five games (4 GS) for Hyannis Harbor (Cape Cod League) in 2019, and 2-2 with a 5.20 ERA, 33/22 BB/K, and 19 hits allowed in nine games (5 GS) and 27.2 IP for Waterloo (Norhwoods League) in 2018... was a 2017 Rawlings Honorable Mention All-American as a senior at Minnetonka HS...
Jacob Wetzel, OF
L/L, 5'11 215, Age 20
Frederick CC
JC SOPH
AREA SCOUT: Billy Swoope
COMMENT: Speedy CF and lead-off hitter... hit a robust 367/509/638, with 6 HR & 62 RBI, 13 doubles and 13 triples, 51/37 BB/K, and 16 SB (3 CS) in 50 games (combined) in 2019-20 and set numerous offensive records for the Cougars over the course of two seasons... transferred to FCC from Old Dominion after freshman year...
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6/11 ORIGINAL POST
CUBS 2020 MLB FIRST-YEAR PLAYER DRAFT PICKS
DAY ONE (6/10)
1st ROUND (16)
Ed Howard IV, SS
R/R, 6'2 185, Age 18
Mt. Carmel HS - Chicago, IL
COLLEGE COMMIT: U. of Oklahoma
AREA SCOUT: John Pedrotty
COMMENT: The top high school shortstop prospect in the 2020 draft... outstanding defensive SS... has plus range, soft hands, a quick release, and a strong arm... also has plus bat-speed and makes hard-contact so projects to have above-average power (for a shortstop) in pro ball... swing & miss is a problem, however... has decent speed (average for a SS) but is an outstanding base-runner... played in the Under Armour All-America game at Wrigley Field in 2019... also played for the Chicago Jackie Robinson West team that went to the Little League World Series representing the Great Lakes region in 2014... grew up on the south side of Chicago and he said in an interview prior to the Under Armour game that he is a White Sox fan... was given the nickname "Silk" by mentor Barry Larkin (because he is so smooth in the field)...
BONUS SLOT VALUE: $3,745,500
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DAY TWO (6/11):
2nd ROUND (51):
Burl Carraway, LHP
L/L, 6'0 173, Age 21
Dallas Baptist University
COLLEGE JR
AREA SCOUT: Todd George
COMMENT: Patriots closer... also pitched for Team USA in 2019... rated by Baseball America as the top pure relief prospect in the 2020 draft... 2019 first-team All-MVC... went 4-2 with six saves and a 2.81 ERA, 1.24 WHIP, .195 OppBA (one HR allowed), 22/72 BB/K in 41.2 IP (28 games) for DBU in 2019... features a 93-96 MPH FB (T-98) and a 76-77 MPH knee-buckling CV... both pitches have a high spin-rate... struck out over 50% of LH hitters he faced in 2019... has a violent max-effort crossfire delivery with an inconsistent release point... throwing strikes has been a problem throughout his HS and college career... close to being MLB ready if he can throw strikes more-consistently...
BONUS SLOT VALUE: $1,436,900
3rd ROUND (88):
Jordan Nwogu, OF
R/R, 6'3 235, Age 21
U. of Michigan
COLLEGE JUNIOR
AREA SCOUT: Jacob Williams
COMMENT: 1st team All-Big Ten as a DH in 2019... hit 335/442/577 with 18 HR & 72 RBI, 21 doubles, five triples, 56/80 BB/K and 16 HBP, and 27 SB (five CS) in 105 games (430 PA) for Wolverines 2018-20... reached base in 30 consecutive games at one point during 2019 season when he led Michigan to a berth in the College World Series... was named to All-Big Ten Freshman Team in 2018... played CF and batted lead-off for Wolverines in 15 games in 2020 before season was canceled... he is an aggressive base-runner with plus speed and big-time HR power but he has a below-average arm and has difficulty reading and tracking fly balls so he projects (at best) as a LF or maybe even a DH in pro ball... crushes fastballs with plus bat-speed and a high exit-velocity but struggles with breaking balls and off-speed pitches... played both baseball and football (OLB/DE) at Pioneer HS in Ann Arbor and he received football scholarship offers from Eastern Michigan and Kent State but he opted to stay home and play baseball (as a walk-on) at UM... is a member of the National Honor Society and was named an Academic All-Big Ten (computer science) in 2019...
BONUS SLOT VALUE: $678,600
4th ROUND (117):
Luke Little, LHP
L/L, 6'8 225, Age 19
San Jacinto College - North
JC SOPH
AREA SCOUT: Trey Forkerway
COMMENT: Gators closer... supposedly threw a 105 MPH FB in a bullpen session shown on Twitter but velo was not independently confirmed by scouts... otherwise FB sits 96-97 (T-100-101)... also features a low 80's SL and an upper 70's CV and a CH that is a work-in-progress... walked more batters than innings pitched in 2019 (36 walks in 35.1 IP) but he also struck out 69 (that's 17.6 K per 9) with a .159 OppBA (one HR allowed) and a 2.04 ERA... strike-throwing showed improvement in 2020 (3/17 BB./K in 9.0 IP) prior to season being canceled... missed a month with a back injury in January... lost 30 pounds (he weighed 250+) after graduating from HS... will transfer to U. of South Carolina if he does not sign with Cubs...
BONUS SLOT VALUE: $492,700
5th ROUND (147):
Koen Moreno, RHP
R/R, 6'2 170, Age 18
Panther Creek HS - Cary, NC
HIGH SCHOOL
COLLEGE COMMIT: East Carolina
AREA SCOUT: Billy Swoope
COMMENT: Rated the #1 high school pitching prospect in North Carolina by Baseball America... Went 5-3 with a 1.62 ERA, .153 OppBA (one HR allowed), and 17/80 BB/K in 47.2 IP for the Catamounts in 2019... was on the varsity baseball squad all four years at PCHS... a multi-sport athlete, he also played basketball and ran track... features an 87-93 MPH FB (T-94), a swing & miss CH, and a promising but inconsistent mid-70's CV...
BONUS SLOT VALUE: $367,900
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CUBS SIGNING BONUS POOL (AGGREGATE BONUS SLOT VALUES FOR THE FIVE ROUNDS): $6,721,600
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SPECIAL RULES IN PLACE FOR 2020 MLB FIRST-YEAR PLAYER DRAFT:(only):
Per an agreement between MLB and the MLBPA that was signed in March, the 2020 MLB First-Year Player Draft will be reduced from 40 rounds to five rounds and will be held (remotely) on June 10th (1st round) and June 11th (rounds 2-5).
A player eligible for selection in the 2020 MLB First-Year Player Draft who is not selected can be signed by any MLB club as a Non-Drafted Free-Agent (NDFA) with a maximum bonus of $20,000 beginning at 9 AM (Eastern) on June 14th, but clubs are not permitted to discuss with a draft-eligible player the possibility of signing the player as a NDFA prior to the draft, during the draft, or anytime after the conclusion of the draft prior to 9 AM on June 14th. This temporary rule change will also be in place for the 2021 draft, although the date of the 2021 draft and the date when a club can begin to negotiate with and/or sign a NDFA will be different that it is in 2020.
The deadline to sign a player selected in the 2020 MLB First-Year Player Draft (as well as a NDFA who was eligible for selection) who has college eligibility remaining is August 1st. The deadline to sign a player selected in the 2020 MLB First-Year Player Draft (as well as a NDFA who was eligible for selection) who has no college eligibility remaining is one week prior to the 2021 MLB First-Year Player Draft.
If a player selected in one of the five rounds does not sign, the BONUS SLOT VALUE for that slot will be subtracted from the club's SBP.
If a player selected in the third round of the 2020 draft does not sign, the club will receive a compensation pick in the 2021 draft one slot lower than where the club picked in 2020. (Prior to this temporary rule change, a club that failed to sign a player selected in the third round would receive a compensation pick after the conclusion of the third round in the next year's draft).
If a player signs for less than the BSV for that slot, the left-over BSV assigned to that slot can be added to the club's aggregate SBP, but any left-over BSV from one of the five rounds cannot be added to the $20,000 maximum signing bonus allowed for a NDFA.
Only $100,000 of a draft pick's signing bonus will be paid in 2020. The balance will be deferred and paid in equal installments in 2021 and/or in 2022. (This rule will also be in place for the 2021 draft).
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So noting and keeping in mind the exceptions in place for 2020 listed above...
MLB FIRST-YEAR PLAYER DRAFT (MLB RULE 4)
The MLB First-Year Player Draft (or "MLB Rule 4 Draft") is normally held annually over a three-day period in June.
There are normally 40 rounds (there were 50 rounds prior to 2012), and draft order is based upon the inverse order of winning percentages from the previous season. If the winning percentages of two or more clubs are the same, the club with the lowest winning percentage from the previous season picks first. If two or more clubs are still tied, league standings from two years back (or three years back, four years back, etc) are used to break the tie.
Competitive Balance Rule 4 Draft picks are slotted in two groups (Competitive Balance Round "A" is slotted after the 1st Round, and Competitive Balance Round "B" is slotted between the 2nd and 3rd rounds).
NOTE: Beginning with the 2017 Rule 4 Draft, Competitive Balance draft picks will no longer be awarded by lottery. Rather, all clubs who qualify (the ten smallest market clubs and the ten lowest revenue clubs) will receive Competitive Balance draft picks in either Competitive Balance Round "A" (between the 1st & 2nd round) or in Competitive Balance Round "B" (between the 2nd & 3rd rounds), with each club alternating between the two rounds every-other year.
If an Article XX-B Qualified Player subsequently signs a Major League contract with another (different) MLB club prior to the MLB Rule 4 Draft (MLB First-Year Player Draft), the player's former club (the club that lost the Qualified Player) normally will receive a compensatory draft pick in the MLB Rule 4 Draft between the 2nd & 3rd rounds (after Competitive Balance Round "B").
EXCEPTIONS: An MLB club that receives revenue sharing funds would receive a compensatory draft pick immediately after the conclusion of the 1st round (prior to Competitive Balance Round "A") - IF - the Qualified Player signs a contract worth at least $50M (the club would receive a compensatory draft pick between the 2nd & 3rd rounds and after Competitive Balance Round "B" if the Qualified Player signs a contract worth less than $50M), and an MLB club that is a Competitive Balance Tax (CBT) payor (club's payroll from the previous season exceeded the so-called "Luxury Tax") would receive a draft pick between the 4th & 5th rounds.
NOTE: If more than one club receives the same type of compensatory pick, the draft order for the comp picks is the same as it is for all other rounds in that draft (clubs select in inverse order of league standings from the previous season, and in the case of two clubs finishing with the same record the previous season, league standings from two seasons back will be used to break the tie, and if If the clubs are still tied, league standings from three seasons back, four seasons back, etc, will be used to break the tie).
An MLB club that signs an Article XX-B player who was extended a Qualifying Offer from his previous club forfeits its 2nd highest selection in the next MLB Rule 4 Draft and $500,000 is subtracted from its assigned International Signing Bonus Pool (ISBP) in the next full International Signing Period (ISP).
EXCEPTIONS: An MLB club that receives revenue sharing funds would surrender its 3rd highest selection in the draft but nothing is subtracted from the club's ISBP in the next full ISP, and an MLB club that is a CBT payor (club's payroll from the previous season exceeded the so-called "Luxury Tax") would forfeit its 2nd & 5th selection in the draft and have $1,000,000 subtracted from its ISBP in the next ISP.
NOTE: The Competitive Balance Tax threshold will be $195M in 2017, $197M in 2018, $206M in 2019, $208M in 2020, and $210M in 2021.
The next highest Rule 4 Draft pick (or draft picks) will be forfeited if a club signs more than one Article XX-B player who was extended a Qualifying Offer from his previous club (one draft pick forfeited for each Qualified Player signed).
NOTE: A CBT payor (club's payroll from the previous season exceeded the so-called "Luxury Tax") would forfeit its 3rd & 6th highest selections if the club signs a second Qualified Player, its 4th & 7th selections if the club signs a third Qualified Player, and its 8th & 9th highest selections, 10th & 11th highest selections, etc, for additional Qualified Players signed.
Draft picks subject to forfeiture include the club's own Rule 4 Draft picks, compensatory draft picks awarded to the club after losing an Article XX-B Qualified Player, and draft picks awarded as the result of the Rule 4 SBP Forfeited Draft Pick lottery (including draft picks that were subsequently acquired in a trade). Competitive Balance draft picks (including Competitive Balance draft picks acquired in a trade) and a compensatory draft pick awarded to a club for failing to sign a pick from a previous Rule 4 Draft are - NOT - subject to forfeiture.
NOTE: Prior to the 2018 MLB Rule 4 Draft, Competitive Balance draft picks were subject to forfeiture.
A Rule 4 Draft pick forfeited as the result of a club signing an Article XX-B player who was extended a Qualifying Offer from his previous club is not transferred to any other club (it just disappears).
Beginning with the 2018 Rule 4 Draft, any MLB club that had a payroll from the previous season that was $40M or more above the Competitive Balance Tax threshold will have its highest draft selection moved down ten slots, unless its first selection is among the top six picks in the draft, in which case it will have its second-highest draft slot moved down ten slots.
NOTE: In determining whether a club would have its highest or second-highest draft pick moved down ten slots, the six "protected" picks at the top of the 1st round would NOT include any compensation draft pick received by a club for failing to sign a 1st round draft pick from a previous draft -- these compensatory draft picks are already "protected."
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MLB FIRST-YEAR PLAYER DRAFT (MLB RULE 4) ELIGIBILITY
An individual is eligible for selection in the MLB First-Year Player Draft (MLB Rule 4 Draft) if the person is at least 17 years old, has not previously signed an MLB or minor league contract, and is either a resident of a U. S. state or territory or Canada and has been for at least one year, or is not a resident but was enrolled in a high school (known as "secondary school" in Canada) or college in a U. S. state or territory or Canada within the previous year, and...
1. Player has graduated from high school and has received a diploma (if the player graduates early from high school and receives a diploma prior to turning 17, the player is eligible for selection if he turns 17 no later than 45 days after the draft and the player submits written notice of early graduation to the MLB Commissioner by January 15th); or
The player's high school class has graduated (12th grade) and
2. Player has not yet graduated from high school but player's high school athletic eligibility has expired; or
3. Player dropped out of high school at least 365 days prior to the draft; or
4. Player attended a junior college the previous school year; or
5. Player is attending a four-year college and the school has no baseball program, or
6. Player is attending a four-year college and player has completed at least junior year of athletic eligibility, or
7. Player is attending a four-year college and is age 21 or older (or will turn 21 within 45 days of the draft); or
8. Player withdrew from a four-year college at least 120 days prior to the draft.
A player dismissed from a four-year college for academic reasons prior to the draft is eligible for selection only with the consent of the MLB Commissioner.
For purposes of draft eligibility, a GED is not considered a high school diploma.
NOTE: Prior to the 2017 draft, a GED was considered equivalent to a high school diploma for purposes of draft eligibility.
A club is not permitted to select a player in the Rule 4 Draft two years in a row, unless the player gives his approval in advance.
A high school player eligible for selection may elect (in advance) to have his name removed from draft eligibility in that particular Rule 4 Draft.
Prior to the draft, the MLB Commissioner's office will designate what it considers to be the Top 300 players in the draft, and offer each of the players an opportunity to furnish in advance of the draft access to the player's certified medical history available to be reviewed by all 30 MLB clubs. Players are not required to participate in the program, but if a player declines to participate, the player may not furnish medical records to any club or clubs prior to the draft.
From among the Top 300 players, the MLB Commissioner's office will designate what it considers to be the Top 50 pitchers in the draft, and offer each of the pitchers an opportunity to submit a recent certified MRI of the pitcher's shoulder, elbow, or any other part of the body that has received medical treatment during the course of the previous season, available for review by all 30 MLB clubs prior to the draft. Pitchers are not required to participate in the program.
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MLB FIRST-YEAR PLAYER DRAFT (MLB RULE 4) NEGOTIATION LIST
Players selected in the MLB First-Year Player Draft (MLB Rule 4 Draft) are placed on a club's Negotiation List.
In most cases, a player selected by a club in the Rule 4 Draft will remain on the club's Negotiation List until either the player signs or until the signing deadline (whichever comes first), and if a club does not sign a Rule 4 Draft pick by the deadline (5 PM Eastern on the Friday that falls during the week July 6-12), the player is removed from the club's Negotiation List and becomes eligible for selection again in the next Rule 4 Draft in which the player would be eligible for selection. The exception to this rule is any college senior with no baseball eligibility left. This class of player remains on the club's Negotiation List until the player signs or until one week prior to the next Rule 4 Draft (whichever comes first).
A player selected in the Rule 4 Draft will be declared a free-agent if he is not offered a contract by the signing deadline.
A player eligible for selection in the Rule 4 Draft who is not drafted ("Non-Drafted Free-Agent" or "NDFA") can sign with any club after the conclusion of the draft any time up until one week prior to the next Rule 4 Draft, unless and until the NDFA enrolls in a junior college or four-year college, in which case MLB Rule 4 Draft eligibility rules apply.
A player selected in the MLB Rule 4 Draft or a Rule 4 eligible NDFA cannot be signed to a Major League contract.
A player selected in the MLB Rule 4 Draft or a Rule 4 eligible NDFA can be "Signed for Future Service" (contract is for the following season) if the player signs a contract during the period of time extending from July 2nd through December 31st.
NOTE: The Cubs signed 32 of their 42 2018 draft picks, including their first twenty picks and 23 of their first 24. They also signed three NDFA.
CUBS 2019 MLB RULE 4 DRAFT NEGOTIATION LIST: (updated 6-3-2019):
TBA
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MLB FIRST-YEAR PLAYER DRAFT (MLB RULE 4) SIGNING BONUS POOL (SBP)
There is a maximum limit on the aggregate amount of money that each club can pay as signing bonuses to players selected in a First-Year Player Draft (MLB Rule 4 Draft) before penalties begin to accrue.
Prior to the Rule 4 Draft, each MLB club is assigned a “Signing Bonus Pool” (SBP) equal to the aggregate pre-assigned bonus value of all of the club’s draft slots in the first ten rounds (including supplemental & compensatory draft picks). The higher the slot, the higher the bonus value. (The collective MLB SBP is determined in advance by calculating industry revenues).
If a club fails to sign a player selected in the first ten rounds (including supplemental draft picks), the value of that slot is deducted from the club’s SBP. There is no bonus value assigned to draft slots after the 10th round, but if a club pays a signing bonus in excess of $125,000 to a player selected in the 11th round or later or to a player eligible for selection who was not drafted, the amount of that bonus in excess of $125,000 is deducted from the club’s SBP.
If a club exceeds its SBP in a given Rule 4 Draft, a tax will be assessed and future Rule 4 Draft picks could be forfeited, depending on how much the club exceeded its SBP. (The club’s 1st Round draft pick in the next Rule 4 Draft is forfeited if the club exceeds its SBP by 5-10%, its 1st & 2nd round draft picks in the next Rule 4 Draft are forfeited if the club exceeds its SBP by 10-15%, and the club’s 1st Round picks in the next two Rule 4 Drafts are forfeited if the club exceeds its SBP by more than 15%).
Money collected from the tax on clubs that exceed their SBP will be distributed to qualifying clubs as Revenue Sharing funds, and forfeited draft picks will be reassigned by lottery. (Any club that exceeds its SBP is excluded from the lottery).
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MLB RULE 4 COMPENSATION DRAFT PICKS
A Rule 4 Draft compensation pick is awarded to a club if the club is unable to sign a player selected in one of the first three rounds of the MLB Rule 4 Draft (including compensation draft picks between rounds 1-2, 2-3, and 3-4, Competitive Balance draft picks, draft picks awarded to a club after the club loses an Article XX-B MLB Free-Agent Qualified Player, and draft picks assigned to clubs from the SBP forfeited draft pick lottery).
A club must offer a drafted player at least 40% of the slot value in order to be eligible to receive a compensation draft pick if the player does not sign.
EXCEPTION: A club is not required to offer a drafted player at least 40% of the slot value in order to be eligible to receive a compensation draft pick if the player does not sign if the drafted player is one of the Top 50 pitchers designated by the MLB Commissioner's office prior to the draft and the pitcher declined to submit an MRI
If a player selected prior to the 3rd round of the Rule 4 Draft does not sign, the club receives an extra compensation selection in the next Rule 4 Draft, one slot lower than where the club selected the previous season.
If a player selected in the 3rd round of the draft does not sign, the club receives an extra compensation selection after the 3rd round in the next Rule 4 Draft, with clubs selecting in inverse order of league standings from the previous season. (In the case of two clubs finishing with the same winning percentage the previous season, league standings from two seasons back will be used to break the tie. If the clubs are still tied, league standings from three seasons back, four seasons back, etc, will be used to break the tie).
A club would receive another compensation pick in the next Rule 4 Draft after that if a player selected with an extra compensation pick does not sign (same slot as the extra compensation draft pick for a player not signed after being selected prior to the 3rd round, and between the 3rd round compensation picks and the 4th round for a compensation draft pick not signed after being selected after the 3rd round), but there is no additional compensation pick awarded the following season (three years removed from the original draft pick) if a club is unable to sign that player.
A compensation draft pick awarded to a club after the club is unable to sign a player selected in a previous draft is NOT subject to forfeiture if that club signs an Article XX-B player who was extended a Qualifying Offer from another club.
Beginning with the 2018 MLB Rule 4 Draft, Article XX-B Qualified Player Compensation draft picks will be slotted between the 2nd & 3rd round of the draft (immediately after Competitive Balance Round "B"), between Rounds 1 & 2 (prior to Competitive Balance Round "A") for any club receiving revenue sharing funds that loses a Qualified Player who signs a major league contract worth more than $50M, and between rounds 4 & 5 for Competitive Balance Tax payors (club's payroll exceeds the so-called "Luxury Tax").
If a player selected with a draft pick awarded as the result of a club losing a Qualified Player does not sign, the club receives a compensation selection in the next Rule 4 Draft, one slot lower than where the club selected the previous season. There is no further compensation if a player selected with that compensation draft pick does not sign.
A compensation draft pick awarded to a club after losing an Article XX-B Qualified Player to another club is subject to forfeiture if that club signs a player who was extended a Qualifying Offer from another MLB club.
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MLB RULE 4 COMPETITIVE BALANCE DRAFT PICKS
"Competitive Balance" Rule 4 Draft picks are slotted between the 1st and 2nd rounds (Competitive Balance Round "A") and between the 2nd and 3rd rounds (Competitive Balance Round "B").
Beginning with the 2017 Rule 4 Draft, Competitive Balance draft picks will no longer be awarded by lottery. Rather, all clubs who qualify (the ten smallest market clubs and the ten lowest revenue clubs, some of which are the same club) will receive Competitive Balance draft picks in either Competitive Balance Round "A" (between the 1st & 2nd rounds) or in Competitive Balance Round "B" (between the 2nd & 3rd rounds), with each club alternating between the two rounds every-other year.
Beginning with the 2018 Rule 4 Draft, Competitive Balance draft picks will no longer be subject to forfeiture by clubs signing a Qualified Player.
A Competitive Balance draft slot can be traded only during a period of time starting on December 2nd and extending up until two hours prior to the MLB First-Year Player Draft (MLB Rule 4 Draft). The slot cannot be traded for cash unless it is a financial adjustment made to offset the salary of one or more of the players involved in the trade. Also, a Competitive Balance draft slot can be traded only once (only by the club that was awarded the pick). Once traded, the slot cannot be "flipped" to a third club.
NOTE: 2020 and 2021 Rule 4 Competitive Balance draft picks cannot be traded beginning on March 28, 2020, and extending through the conclusion of the 2021 draft.
If a player selected with a Competitive Balance draft pick does not sign, the club receives a compensation selection in the next Rule 4 Draft, one slot lower than where the club selected the previous season. There is no further compensation if a player selected with a Competitive Balance compensation draft pick does not sign.
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MLB RULE 4 SBP FORFEITED DRAFT PICKS
A Rule 4 SBP Forfeited draft pick that is forfeited because a club exceeded its Rule 4 Draft Signing Bonus Pool limit will be reassigned to another club by lottery to be held on the Wednesday following the MLB Rule 4 Draft signing deadline. All MLB clubs that have not exceeded its SBP limit as of that point in time are eligible to participate in this lottery.
As with Competitive Balance draft picks, Rule 4 SBP Forfeited draft picks can be traded, but only during a period of time beginning on December 2nd and extending up until two hours prior to the MLB First-Year Player Draft (MLB Rule 4 Draft), and the pick cannot be traded for cash unless it is a financial adjustment made to offset the salary of one or more of the players involved in the trade. Also, a Rule 4 forfeited draft pick can be traded only once (only by the club that was awarded the pick). Once traded, the pick cannot be "flipped" to a third club.
If a club that is awarded a Rule 4 SBP Forfeited Draft pick subsequently exceeds its SBP, the pick will be forfeited and another lottery will be held (date and time TBA by the MLB Commissioner) to allocate the pick to another club.
If a club trades a Rule 4 Forfeited Draft pick to another club, it cannot subsequently sign a player subject to the club's Rule 4 SBP if signing the player causes the club to exceed its SBP.
If a player selected with a Rule 4 Draft SBP forfeited draft pick does not sign, the club receives a compensation selection in the next Rule 4 Draft, one slot lower than the forfeited draft pick slot from the previous season. There is no further compensation if a player selected with a compensation Rule 4 Draft SBP forfeited draft pick does not sign.
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