Extensions on Prospects with Standard Contracts

[lp815]

I did not include in my last post what to do with prospects who have no MLB experience that ALREADY have MLB contracts.

I would recommend that after their MLB contract expires, they are extended the minimum MLB contract (up to two years at $500k).  These players have no MLB experience, so they would fall under the minimum contract.  This is the exact same as a prospect contract, essentially, and as long as they are on your team, you have first chance to extend them, no one else.

[Dan Wood]

this is being written from a phone so please excuse any writing mistakes. Jake i think you r definitely onto something. Maybe we have a guideline for draft contracts that is similar to resigning prospects. This way incorporating the bonus into the contract and being able to sign the player for more than 5 years. Such as harper say a 6 year 10 mil contract. That way it doesnt kill your payroll and you still get a low cost mlb player. Kind of like what u can do in franchise mode in the show

[rcankosy]

Guys,

I've always believed in the KISS rule.  No, that has nothing to do with mono or the band with Gene Simmons, but rather Keep It Simple Stupid.  As some of you might recall, I was the one who proposed that FA bids be awarded on the basis of total dollars and letting the years be decided later.  Now, I find the same scenario with the concept of signing and extending prospects.  It might be just me, but it seems as if as Dan said it earlier, we ALREADY have sufficient rules in place to cover all of the points raised to date.

1.  We've already got a salary table covering the max/min amounts for annual salary and length of contract.
2.  We've already got a rule in terms of being able to extend prospects as defined as players with less than 50 games and 40 IP for up to 3 years after they have passed those thresholds.

I heard some good ideas, but they all seemed to complicate things without really improving anything.  Call me a simple man, but I don't see the compelling need to create another standard for players drafted or prospect contracts in general.  I stand by my original proposal that we simply allow owners to spread bonuses within the already defined salary table that has accounted for dollars and years combined with rule # 2 above for extending prospects.  With all due respect to Jake and others, I do not see the downside to this proposal.  The bonus dollars are still guaranteed, so there is no getting around them even if you cut the player.  I can not imagine why anyone other than perhaps the Yankees would have any issues with this rule, but maybe it's me. 

[Canada8999]

1.  We've already got a salary table covering the max/min amounts for annual salary and length of contract.
2.  We've already got a rule in terms of being able to extend prospects as defined as players with less than 50 games and 40 IP for up to 3 years after they have passed those thresholds.

Item 2 has a minimum of $4.0M/year, so this is far more than extending a player on a prospect contract - is that what you had in mind?

[rcankosy]

No.  I was referring to the rule that allows us to extend prospects for up to 3 years AFTER they have passed the theshholds I mentioned.  You are referring to extending a player BEYOND the 3 years after that point.

Roy

[lp815]

Guys,

I've always believed in the KISS rule.  No, that has nothing to do with mono or the band with Gene Simmons, but rather Keep It Simple Stupid.  As some of you might recall, I was the one who proposed that FA bids be awarded on the basis of total dollars and letting the years be decided later.  Now, I find the same scenario with the concept of signing and extending prospects.  It might be just me, but it seems as if as Dan said it earlier, we ALREADY have sufficient rules in place to cover all of the points raised to date.

1.  We've already got a salary table covering the max/min amounts for annual salary and length of contract.
2.  We've already got a rule in terms of being able to extend prospects as defined as players with less than 50 games and 40 IP for up to 3 years after they have passed those thresholds.

I heard some good ideas, but they all seemed to complicate things without really improving anything.  Call me a simple man, but I don't see the compelling need to create another standard for players drafted or prospect contracts in general.  I stand by my original proposal that we simply allow owners to spread bonuses within the already defined salary table that has accounted for dollars and years combined with rule # 2 above for extending prospects.  With all due respect to Jake and others, I do not see the downside to this proposal.  The bonus dollars are still guaranteed, so there is no getting around them even if you cut the player.  I can not imagine why anyone other than perhaps the Yankees would have any issues with this rule, but maybe it's me. 

Give me an example of what you are proposing, Roy, so we have something to go off of on this current discussion.

[rcankosy]

Jake,

It's the same proposal as before.  You get to spread bonuses for either FA prospects or draft picks based on the current salary table.  Let's say you want to spread the bonuses over the max years for Bryce Harper.  According to our salary chart, you could go 3 years at $2.5 million per year for a total contract value of $7.5 million.  Adding the extra year costs you $0.5 million in total dollars, but it saves you $1 million per year ($2.5 versus $3.5 million).  His contract would read $2.5m (2012).  The caveat is that you get to extend him at $0.5 million per year starting 2013 after his bonus has been paid off.  He also is eligible to be signed at $0.5 million per year for 3 seasons after he has played 50 games according to the prospect rules already in place. 

The same numbers would apply to a FA prospect.  No new rules.  Just a simple caveat to rules already in place.  Simple, right?

Roy

[Canada8999]

No.  I was referring to the rule that allows us to extend prospects for up to 3 years AFTER they have passed the theshholds I mentioned.  You are referring to extending a player BEYOND the 3 years after that point.

Roy

Is this a rule?  I'm looking at the Contracts page and do not see it...

[rcankosy]

Prospect Contracts
A player can be signed to a prospect contract as long as they have pitched less than 40 IP or played in less than 50 games in their career.  The contract is at the league minimum, but it can be more as in the case of some inherited contracts.  The player may be cut at any time, and the hit to the cap will be zero as long as their salary was at the league minimum (bonuses are fully guaranteed).  Note that a player also becomes ineligible for a prospect contract when that player is released from a prospect contract that had its three year clock already start.

The contract lasts for three years after the point they accumulate 40 IP (pitcher) or play in 50 games (position player).   They may accumulate this over multiple years, but the three year rule does not take effect until the year they actually hit the accumulation threshold. 

[Colby]

Prospect Contracts
A player can be signed to a prospect contract as long as they have pitched less than 40 IP or played in less than 50 games in their career.  The contract is at the league minimum, but it can be more as in the case of some inherited contracts.  The player may be cut at any time, and the hit to the cap will be zero as long as their salary was at the league minimum (bonuses are fully guaranteed).  Note that a player also becomes ineligible for a prospect contract when that player is released from a prospect contract that had its three year clock already start.

The contract lasts for three years after the point they accumulate 40 IP (pitcher) or play in 50 games (position player).   They may accumulate this over multiple years, but the three year rule does not take effect until the year they actually hit the accumulation threshold.

That isn't an extension, just the definition of a prospect contract.  Here is my view on this.  A player could be extended on a prospect contract if their base salary was $1m/year before hand.  This is due to the 50% rule for off-season extensions.

Regarding the draft, and huge signing bonuses, the original proposal called for paying out bonuses or a larger amount in a contract.  We decided to KISS, as Roy mentioned, and go with bonuses at lower prices.  The bonuses are not astronomical...

1 - 7.0M
2 - 6.0M
3 - 5.0M
4 - 4.0M
5 and 6 - 3.5M
7 and 8 - 3.0M
9 thru 12 - 2.5M
13 thru 17 - 2.0M
18 thru 31 - 1.5M
32 thru 46 - 1.0M
47 thru 64 - 0.5M
all picks from 65 on require no signing bonus

In real life MLB, picks are not traded, so the liability of having four 1st round picks, several 2nd rounders, and the supplemental round picks is not a reality.  Trading for higher picks means the possibility of spending more money ONLY if you draft the touted prospect.

Remember, these bonuses are not based on your draft position, but the player you selected.  We mentioned that a source would be used for the ranking of draftees in order to determine the slotted bonus assigned to them.  We should figure out such source now, but Baseball Prospectus or the actual draft results should suffice.

Back to the point this entire thread started.  I like the current rules that we have in place.  If a prospect-type player has a standard contract, and the contract expires, then they can be extended to a new contract according to the rules.  If a prospect contract could apply, then it will, so long as their base pay in the previous year was no more than $1m.