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MLB Releases 2016 Draft Bonus Slots

By Jeff Todd | April 5, 2016 at 8:45am CDT

Major League Baseball has released the final draft bonus slots to teams, and MLB.com’s Jim Callis provides the figures. As he explains, and the attached table reflects (mobile link), the Reds have the highest total draft spending power and are one of five clubs with over $10MM in bonus pool money.

2016drafttotalpool

Among the other interesting notes in the post, Callis says that the total draft pool this year adds up to $234,331,200. Last year, he adds, a cool $248,831,830 was spent on bonuses — nearly $40MM of which came outside the top ten rounds.

Having the largest amount of cash to distribute is one thing, but teams still need to be able to put it to strategic use. Last year, the Astros showed the power of the pool money by convincing Daz Cameron to convince other teams he was uninterested in signing because Houston had a big bonus sitting for him (ultimately, $4MM) with the 37th pick. The Diamondbacks, meanwhile, left a significant portion of their total spending capacity untapped, though senior VP DeJon Watson explained that the club got the players it wanted and also felt it would have been difficult to get a player to wait until the 43rd selection (Arizona’s second pick).

In that regard, the volume of top selections matters, too, because it increases an organization’s flexibility — especially as the always fluctuating draft board begins to unfold. The Phillies don’t make their second choice until the first pick of the second round, while the Reds sit at 35th.
2016draftfirstround

In terms of actual bonus allocations for each pick, you’ll need to check out the full piece from Callis to see all of the first ten rounds. But we’ve compiled a table for the first round, at right (mobile link).

Other teams stand out with interesting early pick combinations, including the White Sox (#10, #26); Cardinals (#23, #33, #44); and Dodgers (#20, #32, #36). While it’s certainly possible to simply take the best players on the board and sign them for close to the pool money, these are among the organizations that will have more elbow room to pursue creative combinations.

If you’re in need of a refresher for how draft bonus caps work, MLBTR’s Steve Adams has broken things down, making clear why teams have never yet gone more than 5% past their spending allotment. As Steve wrote:

All bonus money directed toward a player selected in the Top 10 rounds of the draft counts against a team’s bonus pool, as does any bonus money that exceeds $100K to players selected in rounds 11 through 40 (for example, a $180K bonus to a team’s 11th-round pick would result in $80K being removed from its draft pool). As a reminder, the penalties for exceeding draft bonus pools are as follows:

  • Exceed by 0 to 5 percent: 75 percent tax on the overage.
  • Exceed by 5 to 10 percent: 75 percent tax on the overage plus the loss of a first-round pick in the following year’s draft.
  • Exceed by 10 to 15 percent: 100 percent tax on the overage plus the loss of a first- and second-round pick in the following year’s draft.
  • Exceed by more than 15 percent: 100 percent tax on the overage plus the lost of a first-round pick in the following two drafts.
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2016 Amateur Draft

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Comments

  1. johnsilver

    5 years ago

    Slotting is nonsense and needs to be done with. Yet another example:

    Boston has 6.9m total. They have no penalties, as in lost no picks this year. 3.2m of that total is the 12th pick in the draft, so picks 2-9 etc.. make up the rest.. What is up with that??

    Enough of the small market, non spending teams complaining and I don’t mean ones like Pittsburgh that always did know how to draft and scout talent, I mean the Oakland and Tampa’s of the league.. Either raise these ridiculous totals, or dump the system altogether.

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    • JT19

      5 years ago

      If they get rid of slotting, then they would have to enforce a strict rookie scale wage pay…as in players can only make a certain amount (similar to what the NFL and NBA does). Otherwise, getting rid of the slotting with no other protective measures means prospects will just go to whoever is offering them the most money.

      Like
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      • mike156

        5 years ago

        johnsilver can comment more, but I don’t think he was saying get rid of the draft.
        just the slotting $

        Like
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        • johnsilver

          5 years ago

          Thank you. Sometimes don’t make myself plain when post. Without a draft, as existed before it started? Brooklyn and NYY amassed most all talent then and had farm systems better than some MLB teams.. A draft is essential.

          Slotting. or at the least.. Amounts for those slots if it has to exist is the problem.

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          Reply
    • mike156

      5 years ago

      I’m with you on this–it’s silly, leads to distortions in the market, and creates unfair situations. And, while we are at it, I would get rid of the loss of college eligibility rules at the same time. A high school player should have the same option as any talented person–go pro, or go to college.

      Like
      Reply
  2. Los Calcetines Rojos

    5 years ago

    Really hoping Corey Ray can come home to Chicago!

    Like
    Reply
  3. piratesdbackfan

    5 years ago

    Incase you all forgot it was because of the small market teams that this was done — the situation was that the red sox were going to draft OF Josh Bell but he told them he was honoring his scholarship to Texas( I think) So they passed and the Pirates in a smart move drafted Bell and paid him well over what a 2nd rd pick (61st overall) should get – signed for 5 m— red sox complained and that’s what lead to the slot system

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    Reply
  4. Brixton

    5 years ago

    I heard that Groome asked for 6.5M, the Sox draft pool is 6.95M, i don’t think he’ll sign.

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