While baseball's new Collective Bargaining Agreement overhauled the way teams will go about acquiring amateur talent, the new accord also affected signing terms for nearly three dozen professional players this offseason.
Any player with sufficient major league tenure and free agent status who signed a minor league deal this offseason gains two new perks if his signing organization assigns him to the minors at the outset of the 2012 season. To wit, all qualifying players receive a six-figure bonus and a guaranteed midseason opt-out date. From the summary of the new CBA, which the owners and players signed in December:
Article XX(B) free agents signing minor league contracts who are not added to the Opening Day roster or unconditionally released 5 days prior to Opening Day shall receive an additional $100,000 retention bonus and the right to opt out on June 1.
An Article XX(B) free agent is simply one with six or more years of major league service whose big league contract expired at the conclusion of last season. The MLB Players Association published the full list of 2011 Article XX(B) free agents last November, and player examples range from superstars like Albert Pujols and Prince Fielder to complementary players like Willie Harris and Chad Durbin. In the past, Article XX(B) free agents had to negotiate their own opt-out dates for their unconditional release from minor league contracts, but such a clause now becomes mandatory.
To illustrate how this affects players and teams, take the case of 34-year-old outfielder Juan Pierre, whose five-year big league contract expired last November. He agreed to a minor league pact with the Phillies on Jan. 27 after failing to find a team who would sign him to another major league deal in the offseason. Philadelphia ultimately may decide to add Pierre to its 25-man active roster, but if it does, it will have to let him know by March 30, five days before Opening Day.
If the Phillies don't intend to carry Pierre on the active big league roster, then they have two choices. They can either release him on March 30 and owe nothing or pay him $100,000 to play for Triple-A Lehigh Valley and serve as an insurance policy. Even if Philadelphia chooses the latter option, Pierre can opt for his release on June 1 and try to latch on with another organization.
The new clause in the CBA clearly safeguards veterans such as Pierre from spending all season in Triple-A when big league opportunity may exist elsewhere. The firm March 30 release deadline also affords players time to latch on with new organizations prior to Opening Day. Naturally, not all big league front offices view the CBA tweak in such a favorable light. One executive said that signing Article XX(B) free agents to minor league contracts didn't fit with what his organization tries to accomplish.
"Even if given this (retention) bonus, if they are not on the major league roster by June 1 they can walk away and keep the bonus they got at the end of spring training," he said. "It's too rich for our blood."
Update (March 19): Only players from the preceding year's Article XX(B) free agent class are eligible for guaranteed opt-out rights and retention bonuses if they sign a minor league deal. Furthermore, qualifying free agents shall be covered by the clause so long as they sign within 10 days of Opening Day. This year that deadline falls on March 25.
With the logistics out of the way, let's name names. By my unofficial count, here are the 32 players (listed with MLB service time in parentheses) who will be subject to the new CBA clause at the end of spring training. Many of them could be hitting the market again on March 30 if they're not members of their signing team's 25-man roster. Check the comments sections for player release dates.
Red Sox (2)
RHP Aaron Cook (9.02) and RHP Vicente Padilla (11.105)
Cubs (2)
RHP Rodrigo Lopez (8.028) and LHP Trever Miller (11.083)
Reds (2)
LHP Jeff Francis (7.04) and OF Willie Harris (8.14)
Indians (2)
3B Jose Lopez (6.105) and RHP Dan Wheeler (9.047)
Astros (2)
LHP Zach Duke (6.094) and RHP Livan Hernandez (14.097)
Angels (1)
RHP Jason Isringhausen (15.03)
Dodgers (3)
C Josh Bard (8.008), LHP John Grabow (8.016) and RHP Jamey Wright (13.086)
Brewers (2)
SS Cesar Izturis (10.074) and OF Corey Patterson (9.083)
Mets (1)
RHP Miguel Batista (13.163)
Yankees (1)
1B Russ Branyan (10.147)
Phillies (2)
OF Juan Pierre (11.056) and RHP Joel Pineiro (10.144)
Pirates (1)
RHP Juan Cruz (8.121)
Cardinals (2)
2B Alex Cora (12.129) and RHP Scott Linebrink (10.016)
Giants (1)
RHP Ramon Ortiz (8.115)
Mariners (1)
RHP Kevin Millwood (13.109)
Rangers (2)
1B Brad Hawpe (7.058) and 1B Conor Jackson (6.067)
Blue Jays (1)
SS Omar Vizquel (22.13)
Nationals (4)
OF Rick Ankiel (8.033), RHP Chad Durbin (7.102), OF Jason Michaels (10.016) and 1B Xavier Nady (8.059)
Correction: Previous versions of this post incorrectly asserted that second baseman Cristian Guzman, who signed a minor league deal with the Indians in February, would be among the players affected by the new CBA clause. In fact, Guzman's Article XX(B) free agent status does not carry over from 2010. As noted, the clause affects only players from the preceding year's free agent class.
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A couple of questions:
What are the general pay scales at AAA (and other levels of the minors too, maybe)?
When MLB veterans have signed minor league contracts in the past, do they usually get the standard AAA salary, or significantly more?
Also, do any of these rules apply to contracts signed after March 30 and/or opening day?
Posted by Jason | March 12, 2012 at 12:44 pm | ShortcutIf I were a GM, I would not be happy about the large "retention fee" for a AAA player. If these guys are hoping to make an opening day roster, they better not wait until the final week of spring training to impress.
I assume this is for only players who were MLB free agents and not those who finished the year in the minors. If that assumption is incorrect then there are about 30 players not on this list who have met the 6 year requirement and signed minor league deals…I.E. Duke, Tomko, Perez, Podsednik, Kearns, Teahen, Lugo, DeRosa, Cantu, Johnson, Gaudin, Silva, Bush, etc…
Posted by M W | March 13, 2012 at 9:20 am | Shortcut@Jason
Minor leaguers begin making competitive salaries if one of two conditions is met: 1) they make the 40-man roster, or 2) they reach minor league free agency and have multiple bidders for their services.
Our Playing For Peanuts feature, written by former Giants minor leaguer Scott Broshuis, from the 2010 Minor League Preview covers player compensation quite thoroughly. Scroll down to the subhead entitled Make It To Triple-A.
In short, players on optional assignment in the minors (meaning they're members of the 40-man roster) earn a minimum of $78,250 this season, according to the new CBA summary. The top minor league free agents, meanwhile, pull down anywhere from $60,000 to $125,000 for the five months of the season.
I interpret this new CBA clause to affect only those major league Article XX(B) free agents who sign minor league deals between the conclusion of the World Series and five days before Opening Day, in this case April 4.
Posted by Matt Eddy | March 13, 2012 at 10:13 am | Shortcut@M W
I verified with MLB that only *major league* Article XX(B) free agents are eligible for automatic retention bonuses and June 1 opt-out dates. That means that dozens of other *minor league* free agents and released players who have six-plus years of MLB service would have to negotiate such clauses in their contracts.
Players like Nick Johnson (Orioles) and Oliver Perez (Mariners) were declared minor league free agents last November, making them ineligible for the new clause when they signed their minor league contracts in the offseason.
In the case of players like Brett Tomko (Reds) or Bill Hall (Yankees), who elected free agency last fall rather than accept an outright assignment to Triple-A, they are classified as XIXA(2) free agents.
Note that Zach Duke's name already appears in the story.
Posted by Matt Eddy | March 13, 2012 at 10:25 am | Shortcut@Matt Eddy
Posted by jwb | March 18, 2012 at 11:52 pm | Shortcut"In short, players on optional assignment in the minors (meaning they're members of the 40-man roster) earn a minimum of $78,250 this season"
Is this true, or will players on their first optional assignment still receive half of that?
And a few hours later, I see my misstatement. Matt Dominguez was optioned for the first time, but on his second major league contract. The above should read, "on their first major league contract still receive half. . ."
Posted by jwb | March 19, 2012 at 9:33 am | Shortcut@Jason
Article XX(B) free agents may sign within 10 days of Opening Day and still receive guaranteed opt-out dates and retention bonuses in their minor league contracts. I added the following paragraph to the story.
"Only players from the preceding year's Article XX(B) free agent class are eligible for guaranteed opt-out rights and retention bonuses if they sign a minor league deal. Furthermore, qualifying free agents shall be covered by the clause so long as they sign within 10 days of Opening Day. This year that deadline falls on March 25."
Posted by Matt Eddy | March 19, 2012 at 12:47 pm | Shortcut@jwb
I'm told that baseball has maintained status quo with its salary structure for 40-man roster players on optional assignment in the minors.
First-time 40-man players receive $39,125, half of the aforementioned $78,250 that second- or third-time players earn.
Posted by Matt Eddy | March 23, 2012 at 10:13 am | ShortcutCheck back here for updated info on player transactions involving Article XX(B) free agents on minor league deals. Remember, players retained by their signing clubs beyond March 30 either (1) will make the major league 25-man roster or (2) will receive a $100,000 bonus plus a June 1 opt-out date to play for the Triple-A club.
March 19
Phillies release Joel Pineiro
March 25
Cardinals release Alex Cora
March 26
Giants release Ramon Ortiz
Cubs release Trever Miller
Rangers release Conor Jackson
Dodgers release John Grabow
Mariners add Kevin Millwood to 40-man roster
March 27
Astros release Zach Duke
Dodgers add Jamey Wright to 40-man roster
March 28
Blue Jays add Omar Vizquel to 40-man roster
March 29
Nationals release Jason Michaels
Dodgers release Josh Bard
Rangers release Brad Hawpe
Brewers release Corey Patterson (then re-sign him to deal without retention bonus)
Cardinals add Scott Linebrink to 40-man roster
Phillies add Juan Pierre to 40-man roster
March 30
Astros release Livan Hernandez
Angels add Jason Isringhausen to 40-man roster
Nationals add Rick Ankiel to 40-man roster
Yankees release Russ Branyan (then re-sign him to deal without retention bonus)
April 1
Brewers add Cesar Izturis to 40-man roster
April 2
Nationals add Xavier Nady to 40-man roster
Nationals add Chad Durbin to 40-man roster
April 3
Indians add Jose Lopez to 40-man roster
Indians add Dan Wheeler to 40-man roster
April 4
Posted by Matt Eddy | March 25, 2012 at 1:54 pm | ShortcutPirates add Juan Cruz to 40-man roster
Reds add Willie Harris to 40-man roster
Red Sox add Vicente Padilla to 40-man roster
Mets add Miguel Batista to 40-man roster
Is Jeff Francis the only player who was assigned to AAA with the retention bonus and opt out date? Looks like he is…
Posted by M W | April 5, 2012 at 2:12 am | Shortcut@M W
From what I can tell, Jeff Francis (Reds) and Aaron Cook (Red Sox) will receive retention bonuses and June 1 opt-outs as they pitch for Triple-A Louisville and Pawtucket, respectively. (Let’s hear it for the 2007 Rockies rotation!) The Cubs’ Rodrigo Lopez also may go that route, but his situation is still up in the air after Chicago claimed Luis Valbuena on waivers yesterday. That’s because Valbuena is out of options.
Posted by Matt Eddy | April 5, 2012 at 9:06 am | Shortcut