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Early First Round Signings Below Slot

tony sanchez

The MLB Draft occurred just last week, but already, three first-round picks have signed with the teams who picked them.  The disadvantage of signing early is that you forfeit seeing what other players are signing for.  There is a possibility that you sign for less than you could make if you hold out until the deadline.  The positive is that you show goodwill to your signing team and get started within the organization as soon as possible.  Many teams will start you on a higher level, and you will be well on your way up the system while your colleagues are holding out for more money.

Normally, the signing deadline for drafted players is August 15th.  Because August 15th falls on a Saturday this year, the MLB has pushed the deadline  back to August 17th.  Expect a lot of first rounders to sign within minutes of the deadline.  But then there are those who have already signed, two months earlier than they had to.  Tony Sanchez is currently playing with the West Virginia Power of the Pittsburgh Pirates organization (where Dynasty has 2 clients: Kyle McPherson and Ryan Kelly), Drew Storen is with the Hagerstown Suns of the Washington Nationals organization, and Eric Arnett will be sent to Brewers Rookie Ball (Helena).

To be able to start playing in Class A or Rookie Ball now, is definitely a plus.  What about the signing bonuses?

  • Tony Sanchez (#4 overall) – $2.5 million. College Junior – Catcher.
  • Drew Storen (#10 overall) – $1.6 million. Draft-eligible College Sophomore – RHP.
  • Eric Arnett (#26 overall) – $1.2 million. College Junior – RHP.

Last year, the #4 overall pick (Brian Matusz, College Junior – LHP) signed for $3.2 million, higher than Tony Sanchez’s bonus.  Left-handed pitchers are very valuable, but so is the skilled position of Catcher.  Additionally, the #5 overall pick was a College Junior Catcher named Buster Posey.  Drafted one slot later than Sanchez, Posey received the largest bonus of the draft – $6.2 million.  The Pirates spent $6 million on their 1st round pick last year (Pedro Alvarez), so Sanchez really could have probably made more if he held out a little longer.  But again, the positives of signing early..

Last year’s #10 overall pick (Jason Castro) was a College Junior Catcher from the same university as this year’s #10 overall pick – Stanford University.  Castro also signed for more money than this year’s #10 pick.  He received a bonus of $2.07 million.  Again, a highly skilled Catcher is very valuable, but Storen was seen as someone who could help out the Nats immediately.  Storen was also probably drafted in this position because of his signability.  Presumably, the Nationals knew that he would be a quick sign, which is why he was taken at #10 overall.

The #26 overall pick last year was Daniel Schlereth, a College Junior LHP from the University of Arizona.  As previously stated, LHPs are often valued higher than RHPs.  Schlereth received only a little more of a bonus ($1.33 million) than Arnett.

All three first round players that signed, did so below slot value.  I believe that Storen and Sanchez have legitimate reasons for doing so.  But maybe Arnett should have taken a little bit more time before agreeing to the terms of his deal.  What are your thoughts?

By Darren Heitner

Darren Adam Heitner, Esq., is a preeminent sports attorney and the founder of Heitner Legal, P.L.L.C., a Fort Lauderdale-based law firm specializing in sports law, contract negotiations, intellectual property, and arbitration. He earned his Juris Doctor from the University of Florida Levin College of Law in 2010 and a Bachelor of Arts in Political Science, magna cum laude, from the University of Florida in 2007, where he was named Valedictorian of the College of Liberal Arts and Sciences. Admitted to practice in the state bars of Florida, New York, and the District of Columbia, as well as multiple federal courts, Darren also serves as a certified arbitrator with the American Arbitration Association.

As an adjunct professor, Darren imparts his expertise through teaching Sports Law at the University of Florida Levin College of Law and Name, Image, and Likeness (NIL) at the University of Miami School of Law in the Entertainment, Arts, and Sports Law LL.M. program. His scholarly contributions include authoring several books published by the American Bar Association, such as How to Play the Game: What Every Sports Attorney Needs to Know, and numerous articles in prominent publications like Forbes, Inc. Magazine, and Above the Law. His thought leadership in NIL has earned him recognition as one of the foremost experts by The Wall Street Journal, USA TODAY, and On3, and he has been lauded as a “power player in NIL deals” by Action Network and a “top sports trademark attorney” by Sportico.

Darren’s passion for sports law led him to establish Sports Agent Blog on December 31, 2005, initially titled “I Want To Be A Sports Agent.” The platform, created as a New Year’s resolution, has grown into a cornerstone of the sports agency community, offering in-depth analysis of industry trends, legal disputes, and agent-player dynamics. His commitment to the field is further evidenced by his representation of numerous athletes and sports agents, as well as his prior role as an Adjunct Professor at Indiana University Bloomington, where he developed and taught a course on Sport Agency Management from 2011 to 2014.

Darren’s contributions have been recognized with prestigious honors, including the University of Florida’s 40 Under 40 Award, the University of Florida Levin College of Law’s Outstanding Young Alumnus Award, and designation as the best lawyer in Fort Lauderdale by Fort Lauderdale Magazine. He remains an active voice in the sports law community, sharing insights through his weekly NIL newsletter and his X posts, engaging a broad audience on legal developments in sports.

5 replies on “Early First Round Signings Below Slot”

Sanchez was an above slot deal.
Storen was a slot deal
Not sure where you are getting your information

Former BC catcher Tony Sanchez, the Pittsburgh Pirates 4th overall selection signed yesterday for $2.5 million, slightly above the MLB bonus slot recommendation. This comes as a surprise consideration Sanchez was considered to be a value pick, someone who would sign for considerably less than another player in that slot. However, Sanchez has inked a very lucrative deal for himself. He is expected to report to Rookie-A immediately.

Won't the economy effect bonuses?. Attendance is down, money is tight – just look at the free agent signings last winter. I wouldn't be surprised to see most of the bonuses below last year and closer to recommendations. Of course there will be the exceptions (Strasburg et al).

The economy may affect the bonuses, but more than that, it may leave more teams with unsigned picks. Players may go to/return to school with the hope of getting higher bonuses in the future. Perhaps a strengthened economy will allow for that.

By Post Author

Sanchez came to the agreement with Pittsburgh before the draft. They knew he was going to be there at pick 4, and Sanchez and his advisor knew the $2.5 mill he would get from Pittsburgh would be better than the bonus he would get in the mid-late first round (where he probably would have been selected if Pitt hadn't pulled the trigger).

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