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Out of curiosity, what helps the teams determine how much to give a player for a bonus?  I understand the whole slot thing, but looking through the draft signings, I saw some things that make me wonder. There's a kid my son played against that got drafted in the 6th round. Signed for $1.5 million - $1.23 million over slot. And he's unable to pitch right now due to having had TJ surgery earlier in the year. Then I see other guys signing for hundreds of thousands under slot in the same round. I'm sure there's a rhyme and reason for it, but there's a huge amount of swing in it all.
Originally Posted by bballman:
Out of curiosity, what helps the teams determine how much to give a player for a bonus?  I understand the whole slot thing, but looking through the draft signings, I saw some things that make me wonder. There's a kid my son played against that got drafted in the 6th round. Signed for $1.5 million - $1.23 million over slot. And he's unable to pitch right now due to having had TJ surgery earlier in the year. Then I see other guys signing for hundreds of thousands under slot in the same round. I'm sure there's a rhyme and reason for it, but there's a huge amount of swing in it all.

 

Every draft pick is a vulnerable asset with a certain amount of risk and a certain amount of reward involved. That determines a player's draft position and signing bonus - both relative to his value as determined by the team. Signability is rooted in a similar assessment process, except the player is weighing the opportunity cost of other options (for example: a college scholarship).

 

I can't speak to the specific player you mentioned, but everyone is sort of case-by-case. If something confuses me in the game I usually try to revert back to economic (which was my college degree) terminology. It's tough to think of human beings as assets sometimes, but it's the reality of the business. The economic analysis helps me understand processes like that.

 

Last edited by J H
Originally Posted by TPM:

       
JH and PG may be better to answer that question.
But keep in mind there are many variables.  Age,  future projection, tools, how ready is the player to contribute and other options ( ex.signed at a top bb program).

       

That could be. He was signed to a top baseball school. But still, as he is still recovering from TJ, that seems like a lot. After looking a little, this team signed their 1st round pick for over $1.4 million under slot. That team must have had a bunch of extra slot money sitting around.
Last edited by bballman

bballman,

 

I'm guessing this is the player you are referring to.

http://www.perfectgame.org/Pla...ofile.aspx?ID=336351

 

He was a definite 1st round candidate before the injury.  One of the best arms in the country.  Not your typical 6th rounder.  It was probably going to take a lot of money to sign him.  I'm sure the club knew what their first pick was going to cost and saved money to go well over slot on some high ceiling HS pitchers. The pitcher above has a very high ceiling and could turn out to be a big bargain.  They simply took a chance and got a first round talent in the 6th round and worked it into the budget.

Just thought I'd add a few details on the economic state of players at the low levels who are still in their initial contracts.

 

Courts have held that because players are under multi-year contracts, which require them to be at the beck and call of the clubs 24/7/365, they are not able to claim unemployment during the off season. (Note that one of MLB's defense to the lawsuit is that the industry is "seasonal" and, therefore, exempt from the minimum wage. Compare this result to teachers (who in some states can get unemployment in the summer; life guards and ski instructors who can also receive unemployment in the off season.)) MLB is able to deny unemployment because it's lawyers drafted magic words into the milb contracts for players under their draft contracts.)

 

The inability to get a bridge cash flow (unemployment) is compounded by the difficulty on finding an employer who is willing to hire and train a guy who is only able to work five to six months a year (and who needs to work out two to four hours each day).

 

Host families are entitled, and in many cases, accept rent from players. Clubs set the maximum amounts and host families can decline the payment. So, out of that $1,000 per month in wage (less FICA and Medicare)s, I know of players who are forced to pay $300 per month to their host families. To add to the inconvenience, ATMs dispense

less then that per day, so it takes two days to get that cash. (As a side note, I wonder how much of that rent is declared by the recipients.)

 

Players who do not have generous agents also must supply their cleats and gloves. (Hard to play barefoot and catch bare handed.) Those cleats, for the less well off players who can only afford a single pair, really smell by the end of the season - but spending a significant portion of their take home pay on a second pair is out of reach for some. Play a game on a wet field early in the season, and those shoes become toxic very soon. (Colleges give their players multiple pairs; MLB can't afford that luxury.)

 

A player must be available 24/7 for drug tests. Therefore, a player must inform the club about all travel plans (vacation) and be available - even on vacation - for those tests. Miss the test and you get an unpaid vacation. (Rumor has it that Hawaiian players are really subject to testing during the off-season because the testers can write off the cost of their Hawaiian vacations - but that is merely rumor.)

 

A player must be aware of which supplements  - from Flintstone vitamins to protein - he can consume. One slip up in reading a label can result in an unpaid vacation.

 

My point here is not to whine about how hard it is to be at the low levels (and the general public sees the product in front of the screen, not the behind the scene preparation); my point is to illustrate how MLB owns them 24/7/365 but claims that they don't need to pay them the same wages as a fast food worker. 

Last edited by Goosegg

Goosegg,

 

I understand what you mean, but MLB does not "own" any player.

 

In most cases the worst thing that happens in the players mind is called a "release".

 

This is when the MLB club no longer believes the player is worth the small or large amount they are paid. Players can quit anytime they wish, yet not many actually quit after one year of being paid the minimum.

Goosegg,

You have painted a pretty bleak picture.

Everyone knows (or should) know that life in milb as a late sign can be difficult for many. Each and every player should know what is ahead of them when they sign their "indentured slave contract"

 

That is why I always suggest to those that ask, go to college, get a degree, just in case things don't work out. Have a back up plan. Understand that most players do not get large bonus.

I do have to agree with PG on his last point.

As bad as you make it sound, there are hundreds of players that live in this poverty but don't leave the game unless someone tells them to. 

 

Even then, for many, they try to get into the independent leagues, which pays even less, for yet another chance to get back into that life of poverty.

 

Anyway that you can explain that?

Last edited by TPM
Originally Posted by TPM:
Originally Posted by J H:

What I meant was that if it was soooo bad, then why when players are released they try to get back into the game sometimes via a league that pays even less.

 

 

Calling it an "indentured slave contract" and then recognizing that some employees continue to be employed in such a manner does not make the practice of the "indentured slavery" acceptable.

 

Originally Posted by J H:
Originally Posted by TPM:
Originally Posted by J H:

What I meant was that if it was soooo bad, then why when players are released they try to get back into the game sometimes via a league that pays even less.

 

 

Calling it an "indentured slave contract" and then recognizing that some employees continue to be employed in such a manner does not make the practice of the "indentured slavery" acceptable.

 

I was joking, he was making it sound like the players are slaves!

Last edited by TPM
Originally Posted by TPM:
Originally Posted by J H:
Originally Posted by TPM:
Originally Posted by J H:

What I meant was that if it was soooo bad, then why when players are released they try to get back into the game sometimes via a league that pays even less.

 

 

Calling it an "indentured slave contract" and then recognizing that some employees continue to be employed in such a manner does not make the practice of the "indentured slavery" acceptable.

 

I was joking, he was making it sound like the players are slaves!

 

What did he say that was untrue?

 

Originally Posted by TPM:

I didnt say what he said was untrue. I was suggesting that if it were so bad, then why do players still come back year after year?

 

If you want to debate this send a pm.

 

There are four pages of debate here that back my stance on the issue pretty well. I don't really wish to further continue in private. I'm surprised at the sources of defense of the system here, that's all.

 

Last edited by J H
Originally Posted by J H:
Originally Posted by TPM:

I didnt say what he said was untrue. I was suggesting that if it were so bad, then why do players still come back year after year?

 

If you want to debate this send a pm.

 

There are four pages of debate here that back my stance on the issue pretty well. I don't really wish to further continue in private. I'm surprised at the sources of defense of the system here, that's all.

 

Am not in defense of the system, I agree they should be paid more,  just wondering if it is so bad why do players return year after year or why they keep trying to get back in the game if the pay isn't enough?  

 

Getting drafted by a specific team is like going to college, the better programs, the better teams make life easier for you, do your homework, ask the scout questions before you sign. Where will I go first, where are the farm teams located, etc.

 

The testing in the off season was for a reason. I as a parent of a milb was glad that was in place because the temptation is too great for everyone (even for the bonus babies).

Everyone has an opinion, but no one can answer a question?

 

Have seen many many players who did not receive a very good bonus, have in the off season manage to make money (using their college education), give lessons, etc.

 

They made it work. If it was so terrible why did they not use their college education, not take a job with a better opportunity to make more money?

 

I am very very sorry, I do not feel badly for the very late round pick out of HS who took 10K to go off to live his dream. If you have what it takes, the talent, the drive you can only get better. Go to school, then after 3-4 years you might have a better option, a jump start on your education.

 

In other words educate yourself in life in the minor leagues. Then you wont be surprised.

 

 

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