NUKE83 - very informative link.
Did have a question about the Incentive Bonus Plan. Reading it - it looks like, for some strange reason, the accrued bonuses get netted against the CSP plan, if the CSP plan gets tapped. Not a huge amount of money ($2,500 if you do well before reaching MLB level), but does not read like an added benefit and certainly doesn't look like an avenue to tap CSP funds prior to attending college.
The example (from link) below is very confusing and would seem to indicate that the CSP money could be tapped before leaving MiLB service (while you are still playing?) in that the bonuses earned come after CSP funds are disbursed.
EXAMPLE: if a participant receives a $3,500 CSP payment and then subsequently earns (a) a $1,000 IBP bonus for being retained on the Active List of a Class AA Club, (b) a $1,500 IBP bonus for being retained on the Active List of a Class AAA Club, and (c) a $5,000 IBP bonus for being retained on the Active List of a Major League club, the $1,000 and $1,500 bonuses shall be reduced to zero and the $5,000 bonus shall be reduced to $4,000 ($5,000 minus $1,000).
So I believe the CSP/IBP work in two directions. First, the direction that you reference which indicates a player has already received benefit from CSP and then subsequently qualifies for IBP money. That's the example you reference above. In that example, I read it that it effectively zeros out the $3,500 payment drawn for CSP, so the first $2,500 in IBP (the $1k and the $1.5k payments aren't made to the player) and the $1000 balance already paid in CSP is subtracted from the $5k IBP which would give the player a $4k payment in IBP of the total $7,500 IBP earned. It appears that they front load the payback of CSP earned in this case (since the CSP is a reimbursement and not forward paid). So assume the total CSP is $100,000 for the player. Rather than them saying that the player used $3,500 in CSP (balance of $96,500 remains), then $7,500 in IBP (balance of $89,000 remains), they basically pay out a total of $7,500 (total of IBP), but hold back the CSP portion so essentially the balance in CSP is at $92,500 and the player receives check for $4,000 IBP (so $7,500 total with the $3,500 already paid to him via CSP). In the next example, theyamortize any IBP payments across all future tuition payments from CSP.
The other direction is that which is most frequently seen which is a player plays out his baseball career, perhaps takes advantage of IBP during that time, then qualifies and draws on the CSP. That example clearly states that all withdrawals for IBP are funded from the tuition portion of CSP. One of the reps from the Commissioners Office confirmed with us that the CSP funds any IBP withdrawals.
If a participant becomes eligible to receive benefits under the College Scholarship Plan and has previously been paid benefits under the Incentive Bonus Plan, such Incentive Bonus Plan payments shall be deducted from any amounts due under the Tuition Allowance portion of the College Scholarship Plan. Any remaining balance, up to the cost of the player's actual expenses for that term, will be paid directly to the player or university.
EXAMPLE: if a participant's contract provides for a Tuition Allowance of $3,000 for each of eight Covered Semesters and, after attending college for four semesters, the participant receives an IBP payment of $5,000, the participant's Tuition Allowance for each of the four remaining Covered Semesters shall reduced by $1,250 ($5,000 divided by 4), to $1,750.
In a nutshell, they've taken something pretty simple and convoluted the hell out of it.
