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Lets say you get drafted and decide to leave school and try MILB after JR year

1. How does the signing bonus come and do u then income average over several years?

2. Assuming your pay is very little do u try to live on it or eat into your bonus?

3. What are the stipulations to keep that bonus?

4. Are most contracts covering return to college later?

5. How long do u contract to stay?

6. Realistically how long do u try MILB?

7. How did u pick and agent and when?

If u cannot answer some, just choose the ones u can.

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#1 The signing bonus, depending on about how much, is made in 2 payments, less federal and state taxes. One in fall, one the following in spring.  If an agent is involved, he will advise you to speak with an investment counselor.

#2 Player gets paid a salary, and housing is covered.  Each time a player move up a level, his salary increases.

#3 You have to stay in milb for a certain period of time to keep your bonus $$.

#4 The player will be enrolled in the MLB scholarship program and the drafting team covers the amount which is tuition only. Many college teams, have programs to assist.  Clemson's was the Tiger Fund.

This has been discussed here recently.

#5 Not sure what you mean, but there is no time limit assigned. Player has to move through each level within a certain time period or he could be released. In other words you can't be 26 still in rookie or  single A ball. Every year when new players arrive many are released.

#6 I don't know, every situation is different. But you better work your but off, or you will be released sooner than later.

#7 my opinion, don't decide on an advisor unless you are a prospect and will get a significant signing bonus, agents are expensive.

Last edited by TPM

Most of the questions have factual answers TPM provided. How long someone sticks with the minors and making it depends on the person.

A friend’s younger brother decided he didn’t want to sign despite being an 8th round pick offered slot money. He decided to graduate and go into dad’s business before taking over. He saw it as an easier avenue to happiness than busting it hoping to make it through the minors to MLB. My friend was a doctor in residency. She wasn’t interested in dad’s business.

Another friend’s son played minor league ball until he was thirty-four. He was waiting for an organization to ask him to become a coach. He’s now been a minor league coach for four years. Income isn’t an issue. Dad is wealthy. He will inherit half with a brother.

Covid may have put a wrinkle in the following philosophy. It used to be if in AA at 26 you better move up quickly or you’re done. Most of the players I’ve known gave up if still in the minors after 26-28. The pitchers were more likely to be the ones hanging on through 28.

Last edited by RJM

I'm not gong to try to answer all the questions — I was just as interested in TPMs answers as you were probably.

But, the thing that surprised me most was that once the weirdness of the actual draft was over, it's very much like any other new job. Someone contacted son about when to show up and travel arrangements, where to go and once he got there he had paperwork to fill out, information on retirement, benefits, etc., and classes on the organization, their expectations. In other words, it seemed to be very much like any other job on boarding process.

I will say that we worked with an advisor, although son didn't get a huge signing bonus. Although TPM was a HUGE help in explaining how the draft worked, we didn't know how or what to do about working with teams, promoting him, etc. Duncan had teammates who had worked with a specific firm so he went with them too.

They were very helpful just as a reassuring word and were pretty honest with him about his prospects and who they thought was interested and why. I wouldn't say that he wouldn't have gotten drafted without. them, but they were a plus for our mental health, which made it worthwhile.

And finally, I kind of feel like if you go into this worrying about when you're going to get out, you may have the wrong attitude.

1. We were caught in the weird COVID years where the bonus got split out over three years. A portion when he signed and the other two installments (evenly split) in July of the next two years.

2. They actually provide decent meals on game days (6 days a week). They also now cover housing and minor league salaries start in the low 20k's. If you are very careful you can make it during the season without touching your signing bonus. Summers are more complicated as teams have very different philosophies about how much they bring minor leaguers together to work out (with housing and food paid). Most dip into savings during the offseason to cover expenses/workouts OR they give lessons to cover costs.

3. See TPM

4. See TPM

5. You have to pay a portion back if you chose to leave the team prior to the completion of four full seasons unless it's due to injury.

6. Entirely a personal question and very dependent on the organization and the player's situation. Son just played against a bunch of 24-27 year olds in high A (Yankees organization--oldest was 33 I believe) while his team is much younger.

7. We picked several months prior to the draft and went through several rounds of interviews and discussions.

Last edited by PTWood
@TPM posted:

#1 The signing bonus, depending on about how much, is made in 2 payments, less federal and state taxes. One in fall, one the following in spring.  If an agent is involved, he will advise you to speak with an investment counselor.  The amount of the bonus may determine how many payments/over 1-2-3 years. 

#2 Player gets paid a salary, and housing is (now) covered (thank goodness).  Each time a player move up a level, his salary increases.  I strongly suggested that son try to live on what he was paid.  It is a good life lesson.  Yes, it meant cramming 4-5 players into a rental unit, but that goodness that has changed now.  I also *made* him invest in an IRA/ROTH each year.  He will thank me later.

#3 You have to stay in milb for a certain period of time to keep your bonus $$.  This  will be spelled out in the contract.  I am pretty sure the higher the bonus amount, the longer you stay.  I know of a player that got $2000 and played for a few months. 

#4 The player will be enrolled in the MLB scholarship program and the drafting team covers the amount which is tuition only. Many college teams, have programs to assist.  Clemson's was the Tiger Fund.  The scholarship program is in a separate contract so be sure to have it included.  Son did not have a fund to help pay, but larger schools may.  The scholarship fund is a specific amount based on the school his currently attends at the current rate.  By the time he uses it, tutition and R&B will have gone up.  Plus, it is considered taxable income.

This has been discussed here recently.

#5 Not sure what you mean, but there is no time limit assigned. Player has to move through each level within a certain time period or he could be released. In other words you can't be 26 still in rookie or  single A ball. Every year when new players arrive many are released.  I think son's contract said 7 years.  But it really is a one way contract.  They can release you at any time.  Also, if you want to "retire", I think you can at any time.

#6 I don't know, every situation is different. But you better work your but off, or you will be released sooner than later. "You play until they rip the jersey off your back"

#7 my opinion, don't decide on an advisor unless you are a prospect and will get a significant signing bonus, agents are expensive.  Son hired his advisor/agent after he was getting interest fall his Junior year.  He was drafted in the 5th round.  Many scouts will share what rounds of the draft your son is expected to go.

@TPM posted:

@keewart

Love #6!

As an FYI, most P5s that have these programs cover just about everything for all athletes coming back to graduate. The nice part is that a player who is out of affiliated ball for more than required is not penalized.

Also, the scholarship program is only good for 10 years, and there is an end date in the contract.  So, if you play longer than 10 years, and in the MLB, they assume you can afford to pay your own way.  If you are still in MiLB after 10 years, you better have saved some of the bonus money for college.  (if not one of the big schools that has a program that will pay for players to come back....it helps their graduation rates.)

@keewart posted:

Also, the scholarship program is only good for 10 years, and there is an end date in the contract.  So, if you play longer than 10 years, and in the MLB, they assume you can afford to pay your own way.  If you are still in MiLB after 10 years, you better have saved some of the bonus money for college.  (if not one of the big schools that has a program that will pay for players to come back....it helps their graduation rates.)

I thought it was 10 years that you have for living expenses to expire not tuition. I also thought that you must begin classes 3 years within leaving. Or is that negotiable?

@TPM posted:

I thought it was 10 years that you have for living expenses to expire not tuition. I also thought that you must begin classes 3 years within leaving. Or is that negotiable?

I just looked over his 2017 contract (which I think is a standard contract):

In The Continuing Education Program (not scholarship)  it is the living expenses (room and board) which are good for eligible semesters which commence by the 10th  year end date (from the singing of the contract).   "Studies need ...to commence...within TWO years after the date he ceases to be reserved by a Major league, Minor league, foreign professional, or independent league club, voluntarily retires or reserved on an inactive list.....".  The document is 7 pages long with exclusions, procedures for reimbursement, "when the club is relieved of payment", etc. 

I did not get the impression that any of it was negotiable, that his contract was pretty standard, but I didn't push it.   However, there is a poster on here who's son graduated in 3 years, drafted, and negotiated a year of graduate school (essentially his 4th year of college). 

NOTE:  in the 2017 contract, the Continuing Education amount was broken into a yearly total for tuition, and a separate total for Living Expenses, based on amounts for the current year listed from the college website.  Now, I understand, it is broken up by semester.  How this now could impact you, is that after a few years, everything goes up in price, so you will most likely need to make up the difference each semester.  We were able to use more than half the amount for the first semester, and less the second semester, and still didn't use it all since son took his last 3 classes online from home during Covid. 

Also, federal and state taxes are taken out of the reimbursement (you pay for everything upfront), so the difference will be from out of your pocket. 

Some players, if it was to be evaluated, may find that this CEP is not better deal than their 4th year scholarship award, due to the taxes and inflation of tuition, room and board costs.

.....Unless you go to one of the bigger schools that will scholarship your 4th year from their coffers...

@keewart our son's says you have to start three years after last year playing. The tuition contract is included in his overall contract. And the three year split was definitely a COVID thing. It is no longer the case. Guys drafted last year got theirs all at once and guys drafted in 2021 are still waiting for their final payment.

Totally agree with #2 especially with what they provide for players now.

Qualifier: These are my experiences/observations; Unlike many here my son was not recruited out of HS (’14) (pro or college), he tried out for a Texas Juco and made the roster. Thankfully he didn’t take my advice when I counseled him to start his pro career in ’15 when the Pads called in the late rounds and offered a small bonus. He blew off my start pro ball suggestion again in ’16 when Boston drafted him in the 18th round (he slept through the “Will you sign calls”) and was offered a signing bonus more than my annual salary. As a uniformed parent the allure of pro ball, being drafted and an opportunity at the MLB brass ring clouded my objectivity. In ’17 he played at Arkansas instead of Boston (an experience he loved), the Yankees drafted him in the 3rdround and signed for 5X what Boston offered. He owns his entire path, it’s wonderful it’s worked out and as a parent I’m so glad they were all his choices (good or bad). My hindsight counsel to any parent going through this process, become as informed as possible and be an amazing positive resource for your athlete’s choices without driving them.  

TPM and PTWood have it nailed; I would only add the following:

1 – Figure on getting about 50% of the signing bonus (taxes and agent fees). My kid took it in 2 years (not sure he had an option), but it might have been advantageous if it could have been spread across more years (you’d need to look at the tax tables and balance the reduction in tax rate with expected investment returns). Ball players are W2 employees, and currently agent fees and training cost are not tax deductible (recent change – maybe 2016).

2 – I continued to pay an allowance for a couple years while he kept the signing bonus invested. I did this because I never paid tuition for his college and did for his brother. The goal was for him to have seed money to start his life if baseball didn’t work out.

6 – That’s different for everyone – my suggestion would be a couple years to get on the orgs top 30 list (the internal one, not necessarily the MLB published one). If you’re not on the 40 man by the 5th year and there’s no rule 5 interest it might be time to think plan B.

7 – When his velo picked up in ’16 he had some prospective “advisors” and went with the one that directed him toward Arkansas. That agency split up and he’s now with his 10U hitting coach, a great guy and Aaron Judge’s agent… Baseball is a small world.  

I’ve always felt that being on the field from HS on is a blessing. Nobody has earned all the things required to be successful at HS and above (genetics and luck play a part). If you get the opportunity to play pro ball, I feel like it’s something you should try but you should also have a realistic plan.

#4.  I typed right from son's contract.  It's in quotes.  So plan on tuition to start by 2-3 years after your playing days are done.  Son was drafted as a jr out of college...would that make a difference than drafted out of HS player?  It does give time for the player drafted out of HS to apply to different colleges if he chooses.

And according to his contract, the living expenses "expire" 10 years after his contract is singed.  There was an end date specified.  It is money we wanted to take advantage of. 

***Also, what I didn't type, was in his contract was that if he starts the CEP program, he would need to take more classes within 2 years after the completion of CEP class(es), or "MLB could waive payment."  This was jargon I didn't read, or think it applied, or understand.  It is buried in the explanations.  How this (could have) effected my son was he went back to school and actually lived in the "baseball house"  one fall semester when the season ended (A ball?).  This was Fall 2018.  After that, the baseball season ended to late to start classes.  When Covid happened in the spring 2020, son completed his last 3 classes at two different colleges online to finish up the summer 2020.   So he started the CEP, and completed his degree in two spurts, and did not have that two year gap.

I just realized he may have just dodged a financial bullet. 

Like @JucoDad, many parents of player supplement their sons financially each month.  We did not. He chose his career, and he had a bonus to draw on if needed.  What we DID do, was pay the taxes on the CEP payment since we didn't have to pay for his 4th year of college.  It was a win-win for Son and us.

All this to say, I have read that most players do not take advantage of the CEP benefit. 

@keewart posted:

Thank you @ABSORBER, that is exactly what I was referring to.  Son signed his contract after the draft in 2017.

What isn't included is the "front page" stating the money parts:  tuition, living allowance and when the living allowance must commence.

From what I can read it seems to tie living allowance with attendance of classes--since you have to submit within 90 days of the date of the last class. It further states "that reimbursements under Living Allowance are only available for those classes attended within 10 years of the date that the participant signed his first Minor League Uniform Player Contract."

I do know a few folks who have signed contracts and only know what I have heard from them (as far as money is concerned). One draftee (HS) received a package that equated to the 4-year cost of attendance to the out-of-state university to which he was committed. Based on this info I would certainly expect to negotiate something similar if I was the parent of a HS player. Of course a college junior should negotiate for his last year of school but it seems to me a college graduate could perhaps negotiate some $$ as well (especially if he had remaining years of eligibility and had committed as a grad transfer) but currently don't know any draftees in this category. These players of course are up in years (== less value to team) but that doesn't mean they aren't giving up a potential grad degree when drafted.

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