I am sure I am not alone when I say I don't understand how the MLB draft compensation works. Could someone explain this to me. Here is a quote from the recent Baseball America:, "Verlander, the 2nd overall selection in the June draft out of Old Dominion, received a $3.12 mil. bonus in a deal that is worth a guaranteed $4.5 mil. with a maximum value of $5.6 mil." Well, I understand the bonus. Where or what does this other money represent/mean?
Original Post