Last summer, Major League teams had to operate under the new rules imposed on amateur signings put in place by the CBA last winter. While international free agents had previously signed for whatever the market would grant, MLB imposed a $2.9 million spending cap on each Major League team. As Ben Badler noted over at Baseball America today, however, the Rays exceeded the limit and are going to face some significant penalties for doing so:
The CBA limited every team to a $2.9 million bonus pool for the 2012-13 international signing period that began on July 2. The strongest penalty in the CBA is that any team that exceeds its international bonus pool by 15 percent or more will pay a 100 percent tax on the overage and won’t be able to sign a player for more than $250,000 during the 2013-14 signing period. Since July 2, the Rays already have spent more than $3.7 million (not counting players signed for $50,000 or less, since there are exemptions for those players), which is 28 percent beyond their international pool.
As a result, the Rays won’t be able to sign anyone next year for more than $250,000 and probably won’t make any major international splashes until July 2 either because of the tax. Going well beyond the bonus pool is a curious move, but the Rays did pull in a considerable amount of talent, including arguably the two best 16-year-old pitchers on the market. Given that their 90-win season last year will give them one of the lower bonus pools for the 2013-14 signing period, which many scouts believe is shaping up to be a down year for international talent, perhaps it will be a worthwhile gambit.
The 100% tax means that the Rays will owe the league an extra $800,000, which isn’t a huge penalty, but the inability to sign any player for more than $250,000 next summer is a significant issue, and continues to show why the current international limits simply don’t work to promote competitive balance.
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