Author Topic: Draft signing bonus changes  (Read 2393 times)

Navin R Johnson

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Draft signing bonus changes
« on: November 14, 2011, 08:54:49 am »
Buster is tweeting about possible changes to signing bonuses.

Buster_ESPN Buster Olney :

Some of the broad strokes discussed in labor agreement: Ceilings for draft bonuses based on recommendations of first 10 rounds.

No team required to adhere to individual slot recommendations. If team surpasses 10-round ceiling, would be taxed 1st time.  On 2nd offense of surpassing draft ceiling, team would lose a top pick. Also: 1st-rd. compensation to disappear; negotiations in progress.

One source says there are a handful of issues still pending, but that the talks are at "the 10-yard-line."

Nothing finalized, but it appears MLB will get a system that tamps down draft cost; veteran FAs won't have to deal with compensation issue.
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hostros7

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Re: Draft signing bonus changes
« Reply #1 on: November 14, 2011, 09:53:01 am »
Buster is tweeting about possible changes to signing bonuses.

Buster_ESPN Buster Olney :

Some of the broad strokes discussed in labor agreement: Ceilings for draft bonuses based on recommendations of first 10 rounds.

No team required to adhere to individual slot recommendations. If team surpasses 10-round ceiling, would be taxed 1st time.  On 2nd offense of surpassing draft ceiling, team would lose a top pick. Also: 1st-rd. compensation to disappear; negotiations in progress.

One source says there are a handful of issues still pending, but that the talks are at "the 10-yard-line."

Nothing finalized, but it appears MLB will get a system that tamps down draft cost; veteran FAs won't have to deal with compensation issue.

The timing of this sounds positive for the Astros at least. 

jbm

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Re: Draft signing bonus changes
« Reply #2 on: November 14, 2011, 09:56:53 am »
I wonder how that bonus ceiling/taxing/loss of top pick system will play out.  It is not inconceivable to me that wealthy teams might decide to simply say "screw it" to the cap, and pay the tax.  Sure, the loss of a top pick sounds like a deterrent, but is it really to a team drafting late in the first round?  Those teams can continue to seek out hard-to-sign talent (and therefore bypassed in the early rounds) in later rounds.  

This system might have no effect on the Red Sox or Yankees, and instead only deter poorer franchises that typically go way above slot.  

Why is this positive for the Astros?

hostros7

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Re: Draft signing bonus changes
« Reply #3 on: November 14, 2011, 09:59:23 am »
I wonder how that bonus ceiling/taxing/loss of top pick system will play out.  It is not inconceivable to me that wealthy teams might decide to simply say "screw it" to the cap, and pay the tax.  Sure, the loss of a top pick sounds like a deterrent, but is it really to a team drafting late in the first round?  Those teams can continue to seek out hard-to-sign talent (and therefore bypassed in the early rounds) in later rounds.  

This system might have no effect on the Red Sox or Yankees, and instead only deter poorer franchises that typically go way above slot.  

Why is this positive for the Astros?

My initial thinking was that it would help keep draft bonuses reasonable, but it is entirely possible that in practice this new system just tags the Astros from multiple angles. 

roadrunner

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Re: Draft signing bonus changes
« Reply #4 on: November 14, 2011, 11:04:48 am »
The Astros will also be picking high in the draft for the foreseeable future so there won't be any supplemental picks getting in the way.

A more general baseball concern is that if the MLB starts capping draft bonuses then better athletes will stop skipping other sports out of high school to go play baseball.

astrosfan76

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Re: Draft signing bonus changes
« Reply #5 on: November 14, 2011, 12:31:14 pm »
My initial thinking was that it would help keep draft bonuses reasonable, but it is entirely possible that in practice this new system just tags the Astros from multiple angles. 

I could be reading something that wasn't there, but I had the impression that the Crane regime's early emphasis on building through the farm would mean that they sign the best talent, regardless of cost.  If payroll goes down further and we're (even more strongly) discouraged from making up the difference by going overslot for amateur talent, that's another hit for us.

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Re: Draft signing bonus changes
« Reply #6 on: November 14, 2011, 12:58:00 pm »
I could be reading something that wasn't there, but I had the impression that the Crane regime's early emphasis on building through the farm would mean that they sign the best talent, regardless of cost.  If payroll goes down further and we're (even more strongly) discouraged from making up the difference by going overslot for amateur talent, that's another hit for us.
There's still international signing bonuses, which presumably will remain unrestricted. Of course, those also seem to be getting as crazy or more so than draft bonuses, so perhaps they're not as cost-effective.

I wonder if this new system would result in a lot of "tough sign" kids being taken in round 11 and signed for millions.
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astrosfan76

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Re: Draft signing bonus changes
« Reply #7 on: November 14, 2011, 02:31:41 pm »
There's still international signing bonuses, which presumably will remain unrestricted. Of course, those also seem to be getting as crazy or more so than draft bonuses, so perhaps they're not as cost-effective.

I wonder if this new system would result in a lot of "tough sign" kids being taken in round 11 and signed for millions.

I can see it.  This strategy may help some, but agents will still manipulate it, just like they did with the August 15th deadline.  I do like the loss of 1st-round compensation, though.  Hopefully, they'll make any compensation based on net loss of players and they can curb the number of supplemental picks.

Edit:  Oh, and how fitting that the owner's meetings are in Milwaukee this year.
« Last Edit: November 14, 2011, 02:34:34 pm by astrosfan76 »

astros76

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Re: Draft signing bonus changes
« Reply #8 on: November 16, 2011, 09:39:08 pm »
I could be reading something that wasn't there, but I had the impression that the Crane regime's early emphasis on building through the farm would mean that they sign the best talent, regardless of cost.  If payroll goes down further and we're (even more strongly) discouraged from making up the difference by going overslot for amateur talent, that's another hit for us.

Hopefully it will just mean that the price of top talent goes down a bit. I'm okay with payroll going down in the short term, but it better be invested in the farm. Oh, and we better see $70M invested in the farm in the very near future.

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Re: Draft signing bonus changes
« Reply #9 on: November 16, 2011, 09:49:45 pm »
You're not going to see seventy million dollars invested in the Astros, dude, what the fuck planet are you on?
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Reuben

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Re: Draft signing bonus changes
« Reply #10 on: November 16, 2011, 10:29:50 pm »
You're not going to see seventy million dollars invested in the Astros, dude, what the fuck planet are you on?
If Houston had sports media with any balls they would at least make Crane answer the question of what he's going to do with the $70 mil. I'd like an answer, that's for fucking sure.
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Ebby Calvin

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Re: Draft signing bonus changes
« Reply #11 on: November 16, 2011, 10:35:41 pm »
If Houston had sports media with any balls they would at least make Crane answer the question of what he's going to do with the $70 mil. I'd like an answer, that's for fucking sure.

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astros76

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Re: Draft signing bonus changes
« Reply #12 on: November 17, 2011, 10:19:08 pm »
You're not going to see seventy million dollars invested in the Astros, dude, what the fuck planet are you on?

Mostly sarcasm with a little bit of wishful thinking thrown in for good measure, but thanks for playing