Signing Bonuses Round 1-10 1999-2007

Thanks, Frank. Interesting link.

I was just skimming and I noticed the following:

304 Yankees Austin Krum OF ($110,000)
TENTH ROUND
305 Devil Rays *Greg Sexton 3B ($8,000)
306 Royals Greg Holland RHP ($50,000)
307 Cubs Leon Johnson OF ($109,500)


What's going on in this group?

* college seniors, meaning they have no leverage

they take what they are offered

May I ask what the source of your data is---there is no reference on your Angelfire website

Thanks. I was thinking that. I missed the asterisk.

At quick glance (skimming a few that I had looked up before), it looks to me like the same numbers reported in Baseball America.

Wow....Seems like lots of rounds with short money!

The seniors could go to foreign teams. 1 frienf went to Japan and got 1 M tax free over 2 years and car/apt/cell etc all paid for.

Here is a link to a baseball america blog about MLB teams going to 90% of slot $


Should be interesting to watch as the 8/15 deadline approaches.

Bonuses are down

Interesting question, at least for me----if the info comes from Baseball America why not just link to the Baseball America Page instead of bring people to someone elses website where he may or may not get paid for "hits"

I am sure BA would like the people to come to their site


By the way Andy the graphic at the top of the page you link to on your site looks awful familar---

quote:

...if the info comes from Baseball America why not just link to the Baseball America Page instead of bring people to someone elses website where he may or may not get paid for "hits"

Well, if the info is the same as BA...and both are accurate, it doesn't necessarily mean they were copied from BA...unless BA is the only source for the numbers?

But why direct people to his site for "HITS" which he might be getting paid for


THAT IS MY POINT!!!!!

.
Is one of the big messages here to sign as a junior?

44
.

Yeah I might be marrying Adriana Lima too.

Sorry TR I dont get any money for hits, wish I did I get a ton of traffic

quote:

Originally posted by observer44:
Is one of the big messages here to sign as a junior?

WOW! Is that loaded or what? Geez O44, I think we could collectively write a book trying to answer your question considering all factors.

But in the spirit in which it was asked...i.e. financially...almost always, yes.

Exceptions? Well, there were a few in this year's draft including Matt LaPorta (U. Florida) and Casey Weathers (Vanderbilt). But they are the exception.

The bonus amounts are available only from the BA $ubsciber draft database. I read somewhere the Commissioners office dictated a 10% reduction of bonuses this year.

DAD04


I thank you---I thought that might be the case---interesting

quote:

Originally posted by Dad04:
The bonus amounts are available only from the BA $ubsciber draft database. I read somewhere the Commissioners office dictated a 10% reduction of bonuses this year.

That is correct, it is paid content on BA.
Someone paid and copied the information unless they are getting it from MLB. But that's ok, I saw the same thing happen last year on another site, it was free but later in the year.
However, I do agree with TR, if it was taken from a paid source give respect to BA and not share the information publicly. I don't think copying and pasting is ethical.

The commissioners office did dictate a 10% reduction and closely watching the first 5 rounds. Teams can do what they want though, with permission and good reason.

As a junior, some of the 10% was made up in college tuition. That was the only bargaining tool MLB allowed. So the bonus you see for most likely does not include college tuition for HS draftees and those with remaining college credits. My son opted not to take it in cash and his bonus was agreed upon before his name was called. DK made no demands and was lucky someone listened to what he wanted and had good advice. He did indicate after a certain round he would not sign.

The early draft now is not always made up of the best talent, but who is willing to give up what they have and not make huge demands. This is no way a slam to anyone, but it is what it is. If it's about the money, you go or finish school if you have not received what you determine to be life changing $$. If it's not about the money to get you to sign, you go play pro ball. Most college seniors with no eligibility do not have many options, but if they have not graduated they are given $$ to finish school.

A college graduate, IMO has the best option of all, if things don't work out, he has his degree in hand.

JMO.

BTW, most of the first picks have made their agreements, but I think they are waiting for someone else to make a move first.

I'm thinking teams are still paying certain late rounders. I read about a local high school 22nd round Phillies pick, signed with the Gators, whose coach waxed that "he didn't need the money, but has an investment plan..." I'm guessing the 6-4 two way player got more than slot $ to turn down the Gators.

quote:

Originally posted by Dad04:
I'm thinking teams are still paying certain late rounders. I read about a local high school 22nd round Phillies pick, signed with the Gators, whose coach waxed that "he didn't need the money, but has an investment plan..." I'm guessing the 6-4 two way player got more than slot $ to turn down the Gators.

Now with the new Gator HC, I would advise him TO go to college!

With the commissioners office (Brewers owner...err Brewers owners Dad ) asking for a 10% bonus reduction, they (MLB) could choke on a collusion sandwich.

quote:

Originally posted by deemax:
With the commissioners office (Brewers owner...err Brewers owners Dad ) asking for a 10% bonus reduction, they (MLB) could choke on a collusion sandwich.

Good call, deemax.
But what can be done about it? I don't see congress getting involved.

It seems that after the first couple rounds, really even just the first round; that so often heard term "life changing money" is more of a myth than a reality. In this day and age, the money being paid to these young men isn't really all that life changing in the overwhelming percentage of examples. Yeah, getting $500K or thereabouts is a heck of a lot of money, but life changing??? I don't think so in most cases.

I think that so many kids who say that is what they want have no idea of what is being paid out. They're essentially saying that if they're not a first or second round pick, they aren't interested. There are tons of draftable players who'll never be a top 2 rounds pick and I wonder how many have eliminated themselves before they ever have a chance, all because they need to have their life changed by money.

quote:

think that so many kids who say that is what they want have no idea of what is being paid out. They're essentially saying that if they're not a first or second round pick, they aren't interested. There are tons of draftable players who'll never be a top 2 rounds pick and I wonder how many have eliminated themselves before they ever have a chance, all because they need to have their life changed by money.

It certainly isn't a perfect market. I'll bet a few of those kids end up in college only to trip over a book on the way to class, never to be heard from again.

deemax, you may be on to something...MLBPA is investigating

http://www.bizofbaseball.com/index.php?option=com_conte...ew&id=1256&Itemid=42

another article is published in Sports Business Journal, if someone subscribes.

quote:

Originally posted by deemax:
With the commissioners office (Brewers owner...err Brewers owners Dad ) asking for a 10% bonus reduction, they (MLB) could choke on a collusion sandwich.

Maybe some of the lawyers out there could address this but, since it is the draft and it is a signing bonus it might fall out of collusion area. Its not like they can sign with any team. It is a bonus structure that an employer can define as they wish.

Free agancy contract signings would be (and have been) areas of collusion.

Life changing ? Don't forget taxes.

My understanding months before the draft was that MLB recommended a 10% reduction. I didn't hear it was being forced, just recommended. This information was communicated to son before the draft so he knew there was a possibility that any slot would be less than last year.
My understanding was that this was communicated to all teams and agents (recognized to do business with MLB) and my understanding was that this might possibly allow for a negotiated amount after drafting a player not in contact with a team beforehand. The object this year was to be drafted and sign quickly, if you weren't willing ot accept any offer when called, you might get passed over. I don't think teams care, if they lose a draft pick they get another next year.
In the end teams can do as they wish, and I am sure they wish to spend as little as possible on most players but their #1 picks (maybe even them). With the deadline no one really has much time to let things sit and the object is to sign and go play asap or get on with your life.
This was a strange draft year, with so many supplemental picks the emphasis was on slot # not round.

BTW, taxes are not as bad as one may think. Income averaging and split payments will allow a player breaks. I used to think the same way, I was wrong.

I haven't done returns of sports guys for a long time but yes they did have averaging recognizing the limited earning life of an athlete.
I can't recall for sure but I believe it was 10 years that they could spead it out over in the US.

FYI - Income averaging was removed from the tax code with the 1986 Tax Reform legislation. You may no longer spread income over a three year lower earning period. However, the bonus payments spread over two (and sometimes longer periods in the case of two sport athletes) does reduce the taxes payable by using the graduated rate brackets for each year and may keep some of the income out of the top 35% marginal rate.

I I thought that I read that the averaging was removed. It has been a lot longer than the 80s for me.
How would you like 51% MT and 14% on purchases. ?

I did hockey players who filed in Canada and US. Did a couple bonuses but mostly NHL guys who had played for a few years.

quote:

Originally posted by bballfan5:
FYI - However, the bonus payments spread over two (and sometimes longer periods in the case of two sport athletes) does reduce the taxes payable by using the graduated rate brackets for each year and may keep some of the income out of the top 35% marginal rate.

Maybe that is what he meant.

Filing tax returns for athletes is big business so I understand as it can be complicated.

TPM

Tax returns for high school and college players aren't too complicated (just remeber to keep those employee business expense records). IMO the most difficulty comes from having to file individual state income tax returns in multiple states or state you are not familiar with. The income will be allocated to the state in which it was earned and will be listed on the W-2.

If you are not using a professional to prepare your son's 2007 returns, have fun with the New York individual state income tax return. Residing in Florida is pretty nice for saving on the signing bonus though.

He may have some carry forward from educational costs.

I see that PG recently has posted this information as free content.

Apologies if I may have accused from taking from another site.