Last time this subject was touched on, we were a month away from the deadline for MLB teams to sign their 2007 draft picks [2007 MLB Amateur Draft Signing Bonuses – Update]. Time has elapsed, and the August 15th deadline is drawing near. In 6 days, MLB teams will either sign their picks or those unsigned players will be playing college ball (or there is always playing in an independent league).
As of a month ago, signing bonuses for drafted players had been down across the board. Teams had been succumbing to pressures from the office of the MLB to decrease slot values by 10%. The thought was that if anything would change and bring the mean value any higher, it would be caused by the few who held out until the end. This theory is still being pushed.
As of July 10th, 35 of the top 100 picks had not yet signed. As of July 20th (my most recent data), 22 of the top 100 picks have still not signed [PGCrossChecker – DRAFT 2007]. 13 of those 22 are first round selections.
Among the first round picks that are still holding out is high-school pitcher, Rick Porcello, who slipped in the draft because no team wanted to pay the signing bonus that he would be asking for…besides the Detroit Tigers. In Porcello’s slot, pick #27, the office of the MLB suggests that the Tigers grant him a bonus of $1.17 million. The assumption is that Scott Boras wants close to $7 million for his client [Negotiations drag into final week]. The same article, which was published on August 8th, notes that 12 teams still have not signed their first round picks. This means that not much has changed since the July 20th update, and that we can expect most slot-breaking deals to occur right before the deadline, if at all.
I am rallying behind Boras and other agents who still have their clients holding out for values other than what the MLB recommends. I do not recommend that agents severely overvalue their clients, however, it is better that we have a few overvalued players than have a system that is completely regulated by the MLB. If the MLB is the sole arbiter of slot values and continues to insist a decrease in money every year, then we are going along a path where owners are unfairly benefitting at the expense of players who often times only see that one big signing bonus check.
Check back in with you at the final hour.
-Darren Heitner
11 replies on “2007 MLB Amateur Draft Signing Bonuses – Update II”
Selig and MLB trying to be the sole arbiter of draft pick signing bonuses is ridiculous, especially given the fact that such is not in the CBA and will never be in the CBA because MLBPA would never approve of such a thing. It is up to the teams to determine the value on a player based on their organizational needs and scouting of the player. Continue to look for “large market” teams such as the Yanks, Sox, Mets, and Tigers to continue to draft high ceiling guys who appear headed to college in the later rounds and to give them the big money it takes to steer them away from college. This is a great way to avoid the luxury tax.
While the NBA has these maximum contract slots, the NFL does not (due to the NFLPA strength). MLBPA is the strongest union in sports.
Darren, do you think the 7 million asking price is so much, plus im wondering does his bonus destroy those of players drafted infront of him. I’m quessing it must, I dont see how Boras convinces teams to spend that much, whatever he does he does good.
Porcello should have never dropped to the slot that he was picked. He deserves a much higher signing bonus than the MLB suggests. The players who are drafted ahead of him and have already signed have no business getting angry. The ones holding out are in a similar situation to Porcello, and want more dollars.
If Porcello thinks he ‘deserves’ a higher bonus, he can go to college and wait three years, or go to court and sue MLB. Rightly or wrongly, he’s not a free agent. Until the system changes his power is limited.
so it’s okay for Boras to be the sole arbitrator of signing bonus, but baseball cannot follow NFL football’s draft slotting practice…..I beleive the word is industry standard.
Michael:
Boras isn’t trying to be an “arbitrator”, he’s representing a client in negotiations with a MLB team. His job is to get his guy the best deal and use the leverage available to him to get that deal.
Paul:
Porcello can think he deserves whatever he wants, the Tigers can also think he’s worth what they want, MLB can say they suggest this bonus or that bonus, but when it comes down to it, the teams will do what they think is right. Just FYI the Tigers paid more than MLB’s suggested bonus for Verlander, Maybin, and Miller…
But just as the Federal Government makes states pay when they don’t get what they want (i.e. taking away infrastructure funding), the MLB can take away benefits from MLB teams…such as right to host an All-Star game in the near future.
Darren:
Wouldn’t that be considered collusion, which would send a very powerful (as you mentioned) PA into attack mode against MLB?
er i guess it wouldn’t be collusion, exactly, but the PA would be in up in arms. since there is no rookie slotting for bonuses if they league conspired with/against teams to enforce a slotting system, it would likely be a serious violation of the cba…
That’s the main issue. Is it collusion? I tend to think so. While the MLB does not outright say that teams will be indirectly punished for not adhering to their recommended system, many speculate that the MLB is paying very close attention to the situation. They even established a person that all deals must first go through (if the bonus is different than the recommended slotting value). Shady, shady, shady.
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