Major League Baseball teams received a memo Thursday outlining the parameters for this year’s newly created pre-arbitration bonus pool, breaking down payouts based both on Awards voting and based on a new, MLB/MLBPA jointly created version of wins above replacement. Both ESPN’s Jeff Passan and The Athletic’s Ken Rosenthal offer specifics on how the pool will be divided.
The most straightforward path to earning a portion of the pool comes via voting in Rookie of the Year, Cy Young and MVP Awards, as well as the “All-MLB Team” honors created by the league back in 2019. If a player qualifies for two (or more) Awards-based bonuses, he’ll receive the higher of the two bonuses, but not both. The bonuses are as follows:
- Rookie of the Year: $750K for first place, $500K for second place
- MVP and Cy Young: $2.5MM for first place, $1.75MM for second place, $1.5MM for third place, $1MM for fourth or fifth place
- All-MLB: $1MM for being named “First Team,” $500K for being named “Second Team”
Whatever remains of the $50MM pool will be divided, on a percentage basis, among the top 100 players based on the joint MLB/MLBPA-created version of WAR. Put another way: should the total WAR of that 100-player group equal 250, a 2.5-WAR player (accounting for 1% of the group’s total WAR) would receive 1% of the pool’s remainder. Passan and Rosenthal both note that as of Sept. 1, Oakland catcher Sean Murphy was leading pre-arbitration players in the MLB/MLBPA version of WAR. An annual report on the bonus pool and its payouts will be issued in early December, according to Rosenthal, who adds that Yordan Alvarez still qualifies to receive a bonus despite signing a sic-year extension in June that covers the 2023-28 seasons.
That’s not because the extension doesn’t kick in until next season; rather, MLBTR has confirmed with a source that all players who sign extensions will remain eligible for bonuses from the pool during what would have otherwise been their pre-arbitration seasons. For instance, Julio Rodriguez and Michael Harris, who both inked long-term deals earlier this summer, can still receive payouts from the bonus pool not only in 2022 but also in 2023 and 2024. Alvarez would have reached arbitration this offseason were it not for his extension, so this will be the lone season in which he qualifies for the bonus pool.
