MLB Scholarship Program

Savannah ...

Based on our son's experience after he was drafted end of junior year in college, the amount is negotiable between the player and the team, it is not a "set" amount. The variables include: # of years required (e.g., our son negotiated 1 year which is all he needs to get his degree); the college the player is committed to attending (if he has made a college commitment), which may be impacted significantly if the player is not yet committed to a particular college; the negotiating skills of the player/his parents/his agent (e.g., our son was able to negotiate almost 2 times the original offer from the team because there was anticipation of increased costs to attend his college in the future and his school actually offered him an equal amount (above what was then the current cost to attend) in an effort to woo him into staying for his senior season; the increased educational amount helped offset some signing bonus compromises by our son ... and he will go back and get his degree in chemistry when he is done professionally.)

Hope that helps answer your question.

FutureBack.Mom -
I seem to remember a timeline and rules for using the education $'s. Do you have the actual language? It went something like "must start within 2 years after being released ... must take a class in 8 straight quarters ... etc." I know it seemed restrictive and why many players did not follow through and use the $'s.

RHP ...

I know there were restrictions on how soon it had to be used after leaving pro ball, but I don't recall anything restictive as far as taking consecutive semesters/quarters. I also know some of AJ's minor league teammates were going to school only in the fall and I am pretty sure they were using their MLB education money (but not positive).

I will check and see if we have AJ's first contract and if it is addressed there; if it is, I will get the exact wording ... I think we are holding that file for him so it doesn't get lost during the relocations

Here's the link, under "Recruiting Tips" pull out tab in left margin, then Pro Scouting, then
Professional Baseball Scholarship Plan:

http://www.hsbaseballweb.com/pro-scouting/pro-scholarship_plan.htm


College classes must start within 2 years of release, or if player began classes, there may not be more than a 2 year lapse in resuming classes.

Points of negotiation include # of semesters/ years and $$$ amount. Each semester is to be approved by the Commissioner prior to registration & payments are made to the school.

FBM, is this the same a AJ's?

From the MLB link:

quote:

may also be used for room and board if the Player does not live at home. If Player resides off campus, he shall be reimbursed, through his college, if possible, to the extent he would have been charged for on campus residence. Player shall receive a living allowance not to exceed $15.00 per day.

How do you interpret the $15 per day? Is that in addition to, or includes the housing cost..... or.... is this the max allowed on meals per day????
Fungo

COVERED EXPENSES: (reimbursable amount based on actual expenses)
The expenses for which College Scholarship Plan payments may be applied shall be limited to the cost of tuition, textbooks, fees, except scholarship payments may also be used for room and board if the Player does not live at home. If Player resides off campus, he shall be reimbursed, through his college, if possible, to the extent he would have been charged for on campus residence. Player shall receive a living allowance not to exceed $15.00 per day.

NON-COVERED EXPENSES: In no case shall Player be reimbursed for: transportation to and from college, automobile parking charges, medical insurance or infirmary charges, laundry or garment cleaning, clothing, umbrellas, furniture, lamps, calculators, book bags, computer hardware or software, typewriters, etc.

I'm seeing it as food allowance, because of the statement "room & board", noting board as food... That's not much, but sure beats a poke in the eye!

In 2003 I asked a scouting director what percentage of players that were eligible to get the tuition used it. My jaw dropped when he said 10%-15% took advantage of the program.

This was a casual talk question between him and myself and he went on to say that they expect that number to increase as years go on. The reasoning for this he said was that many times the program is directed towards HS players that sign and the tuition bait was directed to parents who had always hoped that little Billy would go to college. Little did they know Billy never wanted to go to college to begin with, and when he left baseball he was neither motivated or prepared to go through the turmoils of school. The college player who may only have a year or so remaining is not usually part of this equation.

The MLB tuition nest egg has to be over flowing with cash. I think that all teams contribute, and MLB gets interest on that investment until the player leaves baseball. While education costs continue to increase the interest coupled with the players that do not use the program results in a nice MLB "cash cow".

I think I do understand the problem. By the time the average player gets done with his minor league stint he may be 25-26 years old with a family. Now he needs a break to unwind and get back to the real world, maybe a year, maybe two. He then starts school, maybe not full-time at first as his study skills have dimminshed if he had them at all. By the time he finishes school he will be 30+ years old. 30something is not old in my book, but I can almost remember being that age with a family, and school would not be that high up on my "things to do list". Many of these ex-players come home after their careers to the family and a job where they use the MLB experience and are satisfied. Maybe there's nothing wrong with that either as that baseball career probably had some very taxing times and the thought of school is not a priority.

Bottom line, I can see where the program is out there to help, but many times it will be viewed as only as one of those life long opportunities that was not taken advantage of.

I recall talking to a scout years ago who had just returned from Scout School. He touched this subject and told me that most if not all contracts were written to essentially make College money an either or with Minor league bonus payments.

Bottom line a kid goes from Rookie to lowA etc and is offered at $5K bonus. That bonus may very well come from the college fund! Bottom line kids washed out at high A and thought Oh well I'll go back to school -- but guess what they'd already used the money in accepting bonuses.

Whether they exactly knew this or not I'm not sure. i can't imagine MLB NOT explaining it before they accepted the bonus but I just don't know.

I always remebered this, just in case. Of course that was at least 5 years ago but it's something to be wary of since we're on the subject.

it was explained to me recently like this

normally offer either "college plan" or "incentive bonus plan", college amount being negotiated

they CAN & WILL agree to both, but your college amount is reduced by whatever incecntive bonus you earn and receive

the $15 per day is a per diem "whatever" expense that's covered with no documentation/reciepts required - it's still coming out of your $$

also heard form several sources that the fund is just "promised money" - NOT an overflowing MLB account - money is dispersed by the team to the MLB fund only if/when the player meets requirements to receive it - with the MLB fund people just verifying and tracking all the school expense info then passing along the dough when the paperwork is done


hope that helps



.

quote:

Rookie to lowA etc and is offered at $5K bonus. That bonus may very well come from the college fund!

Don't think it works that way.
Mrmom,
When my son was drafted out of high school he was offered a signing bonus AND money that would be set aside into the MLB scholarship fund. At that time we could choose to take the scholarship fund dollar for dollar but only at the time of signing. In other words if they offered to set aside $50,000.00 into the fund we could take the $50,000 in additional signing bonus. Most clubs offer a percentage of the set aside funds at this time because the majority of players NEVER use that money and the club never has to pay up. I understood that once the contract is signed the option to use that money as a bonus is no longer available.
Fungo

PS I said "set aside" and that is not accurate. MLB pays the college bills if the player is entitled to a scholarship and in turn bills the club that offered the scholarship at the time of signing.

quote:

The College Scholarship Plan shall be supervised by the Commissioner, or by an administrator appointed by him, and all payments made under the Plan shall be made by the Commissioner or by such administrator, but the Club liable for payments in accordance with the above paragraph shall reimburse the Commissioner's Office promptly upon receipt of billing to cover such payments.

It's possible that things have changed over the years, but here is how I remember it.

Incentive program - $7,500 - Kind of remember the biggest chunk is not paid out ($5,000?) until at least 60 days of AAA. So it's not a major incentive. I could be wrong on this (bad memory)

College - Normally based on closest state school cost, but definitely negotiable. If already in college, cost to finish at that college.

Not unusual to get both in the contract. Everything is negotiable except the $7,500. There are several rules involved in the college program that should be carefully understood.

It is possible to negotiate a bit more bonus in lieu of college money, but they don't like to do it. And the money will not equal the college dollars.

good explanation fungo -

I'll add one more thought

there can be a pretty wide range of perceptions (or mis-perceptions) on how things work depending on who presents the info to you

we've talked with some straight-forward and direct scouts and SD's ,
BUT -
there were a few other scouts whose "people skills" surely must have been aquired selling used cars & turning back odometers

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quote:

also heard form several sources that the fund is just "promised money" - NOT an overflowing MLB account - money is dispersed by the team to the MLB fund only if/when the player meets requirements to receive it - with the MLB fund people just verifying and tracking all the school expense info then passing along the dough when the paperwork is done

That's what I was told also. Any scholarship package is paid by the club itself not MLB.

What about the advent of distance learning and/or part-time during off-season? It would be possible to take a course or two on-line during the season (although not easy) and then take in-class courses in the off season. Are those negotiated?

One of the requirements of the MLB plan is that students must be enrolled "full time" in order to qualify for the reimbursement. Hence, you cannot use it to take one or two online classes.It's one of the many reasons that the plan is difficult (not impossible, but difficult)to use.

And it is true that an extremely small percentage of players actually use the MLB money. I'm not sure how the accounting works at the team and/or MLB level, but I don't think it costs the team much to offer it in the minor league contract because of that fact.

And because it is a specific dollar amount, it won't take into consideration the 6% average annual tuition increases or the enormous room, board and books increases that occur. That's another reason it doesn't work well-- it rarely covers all it needs to when the player is finally ready to take advantage of the money.

quote:

One of the requirements of the MLB plan is that students must be enrolled "full time" in order to qualify for the reimbursement.

Not quite true according to MLB:

Enrolled part-time (minimum of five credit hours if on a quarter system; or six credit hours if on a bi-semester or tri-semester system) at an accredited college or university in pursuit of an undergraduate degree. Any such part-time enrollment shall be approved by the Commissioner in advance of registration. The Commissioner shall reduce the maximum allowable reimbursement for the semester on a pro-rata basis for each credit hour taken in a part-time enrollment, based on a twelve hour semester system.

Fungo, we were typing at the same time!!

It makes perfect sense to me for players to take on-line classes, where possible, then pick up the classroom in the fall, as is possible.

lpx...follow the link for a copy here on hsbbweb.

I think the college fund is usually paid out by semesters. For example, if it is set up for 3 semesters for up to $5000 per semester, you will use up one semester's funds if you only take one class during that time period.

Also, I think the incentive program comes out of the college fund, if you have both in your contract. In other words, if you collect $1000 for playing AA as part of your incentive program, that amount is deducted from your total college package.