Fixing the Major League Baseball Draft, the Details

In the previous post in this series, I talked about my goals for fixing the MLB Draft. I also discussed some constraints and laid out a summary of my proposal. This post lays out the details. Part three analyzes what kind of spending we can expect, but the goal is to have it be around what is spent now, if not a bit more……

The money is based (loosely) on the 2019 draft… we can quibble about details…..in post three. As a reminder, the two most important goals to think about when reading this are to help bad teams get better faster, and to give players at least some say in where they start their career. There are five rounds, with three distinct phases.

Phase 1, The Twenty Worst Teams Have the Advantage

Phase 1, Round 1, the Ten Worst Teams Sign Player(s)

In round 1, the ten teams with the worst record get to sign players.

  • Total pool for this round is $8,000,000 per team.
  • Each team may sign up to two players.
  • They must sign at least one player, for at least $1 million.
  • No player may sign for less than $250,000.
  • There is no maximum pay for any one player, subject to a team’s pool amount (which may go over $8 million with trades).
  • Ten to twenty players will be signed this round.
  • Each team has 2 days to sign players in this round.
  • A team may trade any of its money (after signing at least one player) in this round to another team in this round. This may be traded for existing minor league players or major league players, but not for pool money in later rounds.
  • Any unused money is not put into later pools.
  • Any player not signed in this round is eligible for any later round.

Ten to twenty players will be signed in the first round.

In the 2019 draft, the first pick was slotted for just over $8 million. Slot number eight was set at $5.1 million. It is highly unlikely that the best players sign for less than $5 million in this round, since they can get that next round. Any players that sign for less than that would have probably gone in round 3 or later in the current system, or phase 2 in this system.

Players not getting more than $5 million have an interesting choice if they are one of the better players. Do they sign in this round, or take a chance on the next round? I think both teams and players will find a way for each team to sign two players. At worst, Players not expecting to go in rounds 1-3 are incentivized to sign earlier, since they can get more money. Because a team in the next round may have already traded for money, it is possible that they may have more than $5 million available. This increases the number of teams a player can think about signing with.

Teams that don’t want to spend all their money on one player, or in a year where only 2-3 players stand out, have an interesting choice. Do they try to push for two elite players, chancing that those players will sign before the next round? Do they sign a player, and deal pool money to another team for an existing minor league player(s) or major league player(s)?

Phase 1, Round 2, the Twenty Worst Teams Get Pool Money, Though With Trades, Any Team May Sign a Player

The ten worst teams, and the next teams, get pool money this round. However, they can trade that money to the next ten teams, subject to meeting requirements for signing player(s) this round.

  • The pool for this round is $5,000,000 per team (for the worst twenty teams).
  • Each team may sign up to two players.
  • Teams 11-20 must sign at least two players unless they pay one player at least $4 million.
  • Teams that only signed one player in round 1 must sign two players this round. One of those players must make at least $500,000, and the other at least $350,000.
  • Teams that signed two players in round 1 must sign at least one player for at least $500,000.
  • Teams that have not already signed a player must sign at least one player for at least $1 million. In other words, teams 11-20 (and any team trading in) must pay at least one player at least $1 million.
  • No player may sign for less than $350,000.
  • There is no maximum pay for any one player, subject to a team’s pool amount (which may go over $5 million with trades).
  • Each team has 3 days to sign players in this round.
  • Twenty to sixty to players will be signed this round.
  • A team may trade any of its money in this round to any other team in baseball. They must receive at least on minor or major league player in return. So, one of the ten best teams could enter this round if they trade for money in this round.
  • Any unused money is not put into later pools.
  • Any player not signed in this round is eligible for any later round.

At least twenty players will be signed in round 2. Up to a maximum of sixty could be signed in this round, if every team not already in it trades in, and each team signed two players. Neither of those is at all likely. I believe the worst teams will do their best to sign the best remaining players. This is much cheaper than signing free agents, or trading for great prospects. I also am fairly sure that some teams will trade into the round, meaning the worst teams will get current minor league player(s) in return. Those players will have lower ceilings, but more certain floors (probably) since they have been in the minors.

At the end of this round, the 10 worst teams will have signed three players, and the next ten worst at least one. I think it very likely a handful of the next ten trade into the round, but I don’t know how they’ll act. That’s part of the entertainment…..

Phase 2, Teams That Have Not Participated Yet Get a Slight Advantage

Phase 2, round 3, all thirty teams get to sign players subject to a variable pool.

  • The ten worst teams have a $4 million pool, the next ten worst (and any other team that signed a player in round 2 via trading in) $4.5 million, and teams that have not signed a player yet have a $5.5 million dollar pool.
  • Each team must sign at least 2 and up to 4 players.
  • No player can sign for more than $2 million.
  • Teams that have not signed a player must pay at least one player $1 million.
  • Teams that have signed two players must pay at least one player $750,000.
  • Teams that have signed three or more players must pay at least one player $500,000.
  • Each player must be paid at least $450,000.
  • 60-120 players will be signed in this round.
  • Each team has 4 days to sign players in this round.
  • A team may trade any of its money in this round to any other team in baseball for a minor or major league player.
  • Any unused money is not put into later pools.
  • Any player not signed in this round is eligible for the last round.

Phase 2, Round 4, Teams Must Sign Players So That They Have Signed Ten Players

Phase 2 round 4, all thirty teams may sign players and all teams have the same pool.

  • Each team has $5 million to spend in this round.
  • Each player must sign for at least $250,000.
  • At the end of this round, each team must have signed ten players.
  • Any player not signed in this round is a free agent.

Phase 3, Round 5, Any Unsigned Player May Now Sign With Any Team

Any unsigned player may sign with any team. Players must be paid at least $25,000, and no more than $150,000. Essentially, after 300 players are signed, everyone else is a free agent. I’m willing to reconsider the minimum here, it’s a negotiation point……

That’s it for the details. Next time I’ll look at how the spending plays out (in a few days or a bit longer). But in summary, each team will have signed at least ten players at the end of the entry auction/draft. The worst teams likely signed 1-3 better players than they would have under the current system (they get one early signing, like their old first round pick, and then advantage on signing three more). Plenty of trading is likely, but we’ll look at that in a later post…….