Archive for International Free Agents

What Do You Get for Your International Bonuses?

With the likely winner of the Shohei Ohtani sweepstakes becoming a bit more clear, 23 teams now find themselves in an interesting situation. Before Ohtani had narrowed his list, many of those clubs had hoarded their international bonus money for the big moment. Following the announcement of Ohtani’s seven finalists, however, they were left with the capacity to offer free-agent bonuses, but few actual players in whom to invest that money.

Fortunately for them, a fresh set of prospects emerged thanks to the Braves’ indiscretions on the international market. Some teams — including the Angels, Phillies, and Royals — pounced quickly, using funds from the 2018-2019 pool to sign some of the top ex-Braves. Other teams will assuredly put their remaining bonuses to use in this way, taking a chance that these players will thrive in a new system.

There is, of course, one other way in which teams can put their bonus dollars to work, and it’s one that seems to have increased in popularity during this year — namely, by trading the bonus money. The rules for this have changed a few times. Under the terms of the most recent CBA, however, a team can trade away its entire international bonus pool or acquire additional funds up to 75% of their initial pool through trades.

Some teams have taken advantage of this rule to trade substantial portions of their bonus pools, to varying levels of public approval. The last few days, specifically, have seen the remaining teams in the Ohtani sweepstakes make trades to augment their pools.

Is this a smart strategy? Before we disparage or praise teams for using their bonus pools in this fashion, it’s worthwhile to look at what teams are getting with this particular kind of asset.

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Seong-Min Kim, Korea, and the International Draft

Yesterday evening, Roch Kubatko of MASN announced the most unexpected: The MLB had voided the Baltimore Orioles‘ contract with 17-year-old South Korean pitcher Seong-Min Kim.

Kim had signed with the Orioles earlier this year, but the $550,000 signing almost instantly sent the peninsula into an icy rage. The Korean Baseball Organization (KBO) decried the MLB for not affording it the same unspoken courtesies as Japan’s NPB league. This week, the MLB, the Orioles, and the KBO have taken the tack of calling the signing a “breach of protocol.”

Which is funny because:

Protocol, by definition, is official. Yet this signing hoopla is about an unofficial rule: You don’t take amateur talent from East Asia (or at least Japan and South Korea). For the Orioles’ breach (which has been officially undone now), the KBO outlawed Seong-Min Kim (on February 8) from playing in Korea (that may/should be rescinded), and they have forbid the Orioles from sending scouts to South Korea (that does not appear likely to be rescinded).

In a shame-based culture such as Korea’s, a social breach such as this, however unintentional, can leave a damaging, lasting, and — to Americans — overzealous impression, and that is bad news for the Orioles.

But there is even a bigger issue here, that of the differing expectations and standards in the international market for talent. Because while the KBO complains about MLB teams snatching away talent from the amateur levels, the Puerto Rican baseball community has begun to complain about the opposite issue.
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The CBA’s Impact on the IFA Market

For those who have known me awhile, my writing or talking about fairness in baseball is nothing new. From player salaries, to amateur and international signings, I’ve always been a strong proponent of minimum/maximum spending limits in all aspects of baseball to promote competitive balance. This line of thinking has even carried over to fantasy baseball as commissioners frequently become frustrated with me for pointing out loopholes and asking they be fixed.

Label me a baseball socialist — or idealistic dreamer, for that matter — but the idea of the New York Yankees spending $200+ million on the top end of the spectrum, while the Miami Marlins spend a tenth of that shopping the bargain basement is decidedly frustrating for me.

The beauty of the National Football League is that while it’s an imperfect system for players, each fan know that his team will be spending, at the very least, about 90% of what the highest-spending team is paying. Success or failure is based on talent and not simply a team’s capacity to outspend the market.

Major League Baseball is simply unable to make that argument as millions of baseball fans anticipate spring training simply hoping their favorite team doesn’t finish so far from the playoffs that the season at least remains interesting through June.

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