Major League Baseball announced today that owners of all 30 clubs have ratified a new posting system between MLB and Japan’s Nippon Professional Baseball. The two sides also agreed to an extension of the previous posting system through Nov. 1, 2018, and MLB formally announced within its release that Shohei Otani will be posted by the Hokkaido Nippon Ham Fighters today. The release fee on Otani has been set at the maximum $20MM. Additionally, the Seibu Lions will post submarine right-handed reliever Kazuhisa Makita on or before Dec. 31, MLB announced. A release fee has not yet been set for Makita.
Beginning today, any team that is willing to meet the Fighters’ release fee ($20MM) will be allowed to negotiate with Ohtani and his agent, Nez Balelo of CAA Baseball. Only the team that ultimately secures a contract with Ohtani will be required to pay that $20MM out to the Fighters, however. The negotiation window will run through 11:59pm ET on Dec. 22, according to the league’s release, giving teams three weeks to negotiate.
As for Ohtani, his age means that he falls under the collective bargaining agreement’s designation as an international amateur, meaning he’ll be subject to international bonus pools. At present, the Rangers’ remaining pool of $3.535MM is the largest amount he can be paid. The Yankees ($3.5MM) and Twins ($3.245MM) are next in line. The Pirates can offer north of $2MM, while other suitors for Ohtani’s services like the Mariners and Angels can offer better than $1.5MM.
Ultimately, it seems unlikely that Ohtani’s free agency will come down to a simple matter of the highest bid, though. By coming to the United States right now, he’s forgoing the chance to sign a free-agent contract that could have been worth more than $200MM by simply waiting another two seasons. Balelo has already submitted a memo to all 30 teams asking for presentations including details on evaluations of Ohtani as a pitcher and hitter; player development and medical facilities; Spring Training facilities; cultural assimilation for Ohtani; a “detailed” plan for integrating Ohtani into the organization; a sales pitch on the city itself and what makes it desirable; as well as relevant marketplace characteristics.
Unlike Otani, the 32-year-old Makita is not a young star headed into his prime. Rather, he’s long been a successful starter and reliever. Makita is still subject to the posting system, though, because he did not begin his pro career in Japan until the age of 26, thus leaving him shy of the requisite nine years of service time to be considered a free agent under Japan’s rules. However, under MLB’s collective bargaining agreement, Makita is considered a professional. In other words: he’s subject to the posting system but not to international bonus pools.
Makita owns an excellent 2.83 ERA in 921 1/3 career innings. After moving to the bullpen full time in 2016, he’s posted a minuscule 1.91 ERA in nearly 150 innings. Makita’s submarine delivery could well hold appeal to a wide swath of clubs looking to give opponents a different look in the middle and late innings of a game, but his 5.0 K/9 rate will give teams some pause as well.
Beginning next offseason (Nov. 1, 2018), the release fee associated with a posted player will be directly tied to the size of the player’s contract with an MLB club. Per the league’s release, the sliding scale is as follows:
- For Major League contracts with a total guaranteed value of $25 million or less, the release fee will be 20% of the total guaranteed value of the contract;
- For Major League contracts with a total guaranteed value between $25,000,001 and $50 million, the release fee will be: (i) 20% of the first $25 million of the guaranteed total (i.e. $5 million) plus (ii) 17.5% of the total guaranteed value exceeding $25 million;
- For Major League contracts with a total guaranteed value of $50,000,001 or more, the release fee will be: (i) 20% of the first $25 million of the guaranteed total (i.e. $5 million) plus (ii) 17.5% of the total guaranteed value between $25,000,001 and $50 million (i.e. $4,375,000) plus (iii) 15% of the total guaranteed value exceeding $50 million
- For Major League contracts that contain bonus, salary escalators or options (Club, mutual or vesting), the Club may owe a supplemental release fee at a later date equal to 15% of any bonuses or salary escalators actually earned by the player under his contract, and/or 15% of any compensation paid to the player in Club, mutual or vesting option years that were exercised or vested;
- For Minor League contracts, the release fee will be a flat 25% of the signing bonus. (For Minor League contracts of “Foreign Professionals” that contain Major League terms, a supplemental release fee will be owed if the player is added to the 25-man roster.)
Wow!
Finally someone will be able to sign Makita.
Please make this signing quick. At this point I don’t care where he goes. I just want the market to start moving!
Maximum of three weeks. At least the Winter Meetings start in ten days.
“Please make this signing quick. ” You may get your wish…seems he does not want to hold up the market according to an article on Yahoo Japan…here is the rough (Google) translation ……”Otani side who intends to not want to trouble the major transfer market already has information that it limits the candidate to about five teams, and the possibility of early settlement is high.” Another article states he is already in the US
nikkansports.com/baseball/mlb/news/201711300000785…
Feels like an old-timers day lasted all off season
So two years after the Yankees sign half of BA’s top 25 IFAs they are in the #2 position to sign the best IFA arguably ever. Thank goodness the CBA has really balance the playing field.
In pinstripes by 7pm?
10 downvotes by 7pm?
Little over 1.5 hours till 7 eastern! Who will win ????
AND WE HAVE A WINNER!
Wow… what an honor. First, I’d like to thank Kayrall for making this happen. My mom, you the best. Pops, love you. And last but not least…. MLBTR Keep the site going.
I admit it, did not know if I should up vote or down vote to congratulate your honor…. i up voted…..then. Had second thoughts….just can’t decide 🙂
As a Dodger fan, it would be great if they signed him! But, just smells like the Yankees!
My friend, Ohtani smells nothing like the Bronx….that borough has its very own essence….if you will. This is all for show, from Day 1, he’s had his favorite and 1-2 that are close……AND you said it bro LA Dodgers, trot em out to mound every 5th day and get em some ABs in the OF, Dodgers 5 straight NL West titles, ’18 is Win WS or bust…..Yankees don’t even have a manager and all the new hire guys they interviewed….NONE of em can carry Girardi’s managerial jock !!!! Sign the kid and then deal w/Giancarlo wants to come home……GoDodgers !!!!
I sure hope we don’t get Stanton we don’t need another outfielder and we need to save the money for Kershaw’s extension
Put the crack pipe down.
Typical Dodgers fan: too much exposure to smog.
Nobody likes you sammy boi
Why does it smell like the Yankees? I think they Yankees have no shot really
When you look at what the Yankees can offer compared to other teams, the Yankees come out ahead. Of course, they’re not a lock at all, however, to say that they have no shot is a ridiculous, completely unfounded statement.
We already know he’s a Yankee. Next!
Sure: who doesn’t want to play for a team whose fans harass and assault a player’s family members in the stands when the player has a bad outing?
future reds player, calling it, cause why not?
Because…Cincinnati.
Always remember, whatever goes into the river in Pittsburgh will always arrive in Cincinnati. Moral of the story….. stay away from the might Ohio 🙂
Finally 😛
Othani to the San Diego Padres. It makes sense if he wants a massive initial free agent contract when he is eligible. Hideo Nomo is an executive in the Padre front office. PETCO Park is a pitchers park and would benefit Othani’s pitching stats significantly. Furthermore, the Padre Franchise is on the uptrend with one of the top Farm Systems in all of baseball, and have an awesome player development system in place. I heard Othani does not want to play on a Team which already has a Japanese Star —– San Diego does not, lol. Its Padres Baby ———— BOOK IT!
He’s also going to hit… so by extension, Petco would negatively impact that. And what in the world does Hideo Nomo have to do with a potential massive extension down the line? I might be going out on a limb, but I’m guessing that if Ohtani is as good as advertised that even an American-born exec would give him a massive extension…
Nomo has nothing to do with Ohtani’s next Free Agent contract. How would you interpret that from my post. I am saying having Nomo in the Padre FO helps them in getting Ohtani now. The hitting in PETCO Park would be a negative, but it could also be a challenge to Ohtani as well.
So, in your mind, Ohtani wants to have an easy ride as a pitcher, but he wants to be challenged as a hitter?
Makes perfect sense.
Petco isn’t the pitcher spark it used to be. Read up sonny!
“It makes sense if Ohtani wants a massive initial FA contract when he’s eligible. Nomo is an executive in the front office.”
You know why I read it like that? It’s because you made a wild opening statement, implying that his best bet to make a ton of money with his next contract is to sign with SD. So I suppose I wrongly assumed that you followed that wild statement with supporting facts… such as Nomo being in the front office
As it turns out, it appears you just made a wile statement and let it hang out there without support.
Priggs….you are dripping sarcasm all over our nice clean floor. Please clean it up before you leave. Thanks! 😉
He ain’t travelin all the way from the Rising Sun to play for Padres ! Sorry…..are u high…?
Make sure you are around when Ohtani signs with the Padres!
I’ll make you a deal, Yoda. If Ohtani signs with SD, I’ll buy his jersey and post a photo of me wearing it as my Twitter profile pic.
But when he doesn’t sign with SD, you have to sell me whatever you’re smoking at a discount.
I just read an article by a local sportswriter saying that Ohtani “.is seeking a team that is ready to win now in markets where Japanese players have succeeded before.” I laugh. This writer, like other around the country, is basing on nothing other than that’s what he thinks Ohtani would want. From what we’ve read from people with more knowledge he doesn’t want to go a team ready to win now and isn’t swayed by Japanese players being there before.
We don’t know that he won’t go to a winner or a team that has had successful Japanese players, but the nuggets that are out there at the very least don’t indicate the teams the writer identifies are the favorites. I’d agree they probably would be for other Japanese stars but Ohtani seems to be going a different route.
Coast1….He is a rare individual it seems. If you haven’t read the NYDN article someone mentioned one the earlier Ohtani article you should. I think you will like it.
nydailynews.com/sports/baseball/yankees/japanese-r…
Hard to believe that the Braves ratified this agreement, having taken it in the posterior from the biased commissioner. They can’t participate why help others? #bringbackwren
Ohtani’s age limits his signing bonus, but what about the actual contract? Is it just a typical amateur, two-way deal for the big league minimum/six years of control?
Yep…he signs a minor league contract and can then be promoted. Six years of control unless the team extends him after a reasonable time.
In Theo we trust and he will deliver CUBBY BLUE