Terms, Contracts, DFA Explained

[Stokes1931]

If a player is DFA'd (litterally DFA'd, not just 'removed from 40-man' - to 'Designate For Assignment' is a specific, particular action and the term is often used incorrectly, even by sports writers) then the team has 10 days to trade, outright, or release the player. (If the player has 7 seasons in the minors, OR he has been outrighted at least once before, then he can elect free agency.) So he cleared waivers on the 6th, and the team immediately outrighted him to the minors. I don't understand the conflict.

Oh, 'clearing waivers' means that no team claimed him so they were free to send him to the minors (outright him).

As to a sticky, here it is : Transactions Glossary | Cot's Baseball Contracts

[OK, so this is essentially Marco's thread. I just made it a sticky because Marco may get tired of explaining these things over and over, and we mere mortals keep forgetting. Thanks to Marco for his incredible insight and patience with us.]

 

[Stokes1931]

Actually, that's not true - there were several levels (type A, type B, type C Free Agents - altho 'type C' grading was dropped in the previous CBA). The compensation that the team received depended on how the players were rated by an independent agency. For example, the team that lost a 'type A' player received both the other team's first round pick AND a sandwich round pick. (Yes, it was a lot more complicated, but who cares?)

Now, there are basically only 'type A' Free Agents, and they are defined by 'the team is willing to offer you a $15M+ one year contract' - basically only the best players becoming FAs. Not only that, but the losing team only receives what a 'type B' player would have gotten them before : a sandwich round pick - NOT the other team's 1st rounder.

 

[LHG]

More from Marco:
First, the major league portion of the rule 5 draft :
A player must remain on the majors league roster all season or be offered back to his old team. It is OK if he is on the DL, they don't *automatically* lose him. BUT, if a player selected in the Rule 5 draft spends less than 90 days on the active Major League roster because he is on the DL, he also must remain on the Major League roster the next season until he has a total of 90 days on the MLB active roster.

Now, the minor league portion of the rule 5 draft :
There are two minor-league phases. In the Triple-A phase, a player not protected on his club’s 40-man roster or 38-man Triple-A reserve list may be selected for $12,000. In the AA phase, a player not protected on his club’s 40-man roster, 38-man Triple-A reserve list or 37-man Double-A reserve list may be selected for $4,000. A player selected in the minor-league phase of the Rule 5 draft is not required to play the next season with his drafting club at the higher organizational level.

Oh, I should have added (it seems pretty obvious when you've read the rules, but ...) : so a player in A level during the current season if moved to AA and placed on the 37-man Double-A reserve list can't be drafted during the AA phase, so he wouldn't need to be added to the 40-man to be protected. He *would* be eligible to be grabbed during the AAA phase though. SO, if you have guys in A who are studs, and you think are maybe a couple years away from the majors you should really put them on the 40-man. Guys that were in A or AA that *could* turn out to be good/are on the edge, and probably many years away, you bump up a level (or two) and add to a minor-league reserve list to protect them.

All this junk needs to be done around/before November 20.

 

[LHG]

Yet another pearl of wisdom:
I believe that Nov 20th is the deadline to add your own minor league players to the 40-man - after that date only new acquisitions can be added.

 

[LHG]

Last of the ones I remember:
I believe that a '6 year free agent' actually has to have 7 years served. Bizarre, I know.

Foreign leagues do count, so long as they are part of the MLB team's minor league affiliates. And so long as the player spent at least one day on a minor league roster, somewhere, during the year.

 

[Stokes1931]

Last of the ones I remember:
I believe that a '6 year free agent' actually has to have 7 years served. Bizarre, I know.

Foreign leagues do count, so long as they are part of the MLB team's minor league affiliates. And so long as the player spent at least one day on a minor league roster, somewhere, during the year.

Yup, I did this sticky thread for you, LHG.....

 

[LHG]

More about the Rule 5 draft, from Baseball America:
• All minor league Rule 5 picks cost the drafting team $12,000 and carries no restrictions on player assignments. The Marlins paid the Cardinals $4,000 to select righthander Juan Caballero in the Double-A phase.

• All major league Rule 5 picks cost the drafting team $50,000, and those selected must remain on the 25-man roster for the entire 2016 season or else be placed on waivers. If no other team elects to roster the player, then his original team may reacquire him for $25,000.

 

[MarcoPolo]

I think you nailed it, but here's an additional piece of info - you can't DFA a player if the 40-man isn't full. So you keep the roster full until you need (say) 2 spots, DFA Ehire and THEN move Gardeck to the 60-day.

is this true?

Suppose we have 39 players on the 40-man. One player (Broadway, for example) does not have any options, but also does not make the team. How would the club handle that situation?

Yes, it is true. "DFA" is a very special, specific thing, and is far from the only way to send a guy to the minors. The team could :

1) place him on revocable waivers and if nobody claims him then he can be sent to the minors and stays on the 40-man. If at least one team claims him, then the team with the worst record last season (of all the teams that put in a claim) is the one team that can get him. You have 2 days to make a deal, or you can pull him back off waivers and play him in the majors. (Edit: 'team with the worst record last season' is true until April 30th. After that it becomes 'team with the worst record this season'. This is true for all waiver types.)

-or-

2) place him on irrevocable outright waivers. If nobody claims him then he can be sent to the minors and is removed from the 40-man. If at least one team claims him, then the team with the worst record last season (of all the teams that put in a claim) is the team that gets him (and assumes his contract).

-or-

3) place him on irrevocable unconditional release waivers. If nobody claims him then he becomes a free agent and is removed from the 40-man. If at least one team claims him, then the team with the worst record last season (of all the teams that put in a claim) is the team that gets him (and assumes his contract). A player can refuse the assignment, but he loses his guaranteed contract money (if any).

The advantage of DFA'ing a player rather than using any of the above waivers is that :
- (this is the big advantage) you can negotiate with ALL 29 other teams for a trade, instead of just the one with the crappiest record. This *greatly* increases the chance of finding a good trade partner.
- you have 10 days to resolve, instead of 2 or 3- you can DFA a player on a weekend (some, if not all, of the above waivers can only be done Mon-Fri).

 

[tzill]

Yes, it is true. "DFA" is a very special, specific thing, and is far from the only way to send a guy to the minors. The team could :

1) place him on revocable waivers and if nobody claims him then he can be sent to the minors and stays on the 40-man. If at least one team claims him, then the team with the worst record last season (of all the teams that put in a claim) is the one team that can get him. You have 2 days to make a deal, or you can pull him back off waivers and play him in the majors. (Edit: 'team with the worst record last season' is true until April 30th. After that it becomes 'team with the worst record this season'. This is true for all waiver types.)

-or-

2) place him on irrevocable outright waivers. If nobody claims him then he can be sent to the minors and is removed from the 40-man. If at least one team claims him, then the team with the worst record last season (of all the teams that put in a claim) is the team that gets him (and assumes his contract).

-or-

3) place him on irrevocable unconditional release waivers. If nobody claims him then he becomes a free agent and is removed from the 40-man. If at least one team claims him, then the team with the worst record last season (of all the teams that put in a claim) is the team that gets him (and assumes his contract). A player can refuse the assignment, but he loses his guaranteed contract money (if any).

The advantage of DFA'ing a player rather than using any of the above waivers is that :
- (this is the big advantage) you can negotiate with ALL 29 other teams for a trade, instead of just the one with the crappiest record. This *greatly* increases the chance of finding a good trade partner.
- you have 10 days to resolve, instead of 2 or 3- you can DFA a player on a weekend (some, if not all, of the above waivers can only be done Mon-Fri).

great summary Marco and thanks. Question: why would a team ever NOT DFA a guy then?

 

[MarcoPolo]

great summary Marco and thanks. Question: why would a team ever NOT DFA a guy then?

Because :
- they would like to keep him (on the 40-man), so they use revocable waivers
- they don't want to keep him, so they use unconditional release waivers
- their 40-man isn't full, so they can't
- the guy has rights (enough service time) to refuse outrighting or DFA claim
- the player has told the team that he would rather be a FA then return to the minors, so they release him

(and probably several other reasons)

 

[tzill]

Because :
- they would like to keep him (on the 40-man), so they use revocable waivers
- they don't want to keep him, so they use unconditional release waivers
- their 40-man isn't full, so they can't
- the guy has rights (enough service time) to refuse outrighting or DFA claim
- the player has told the team that he would rather be a FA then return to the minors, so they release him

(and probably several other reasons)

forgive if I'm not following, but:
1. If they want to keep him -- this I get. I was assuming that they wanted to get rid of him.
2. If they don't want to keep him -- wouldn't DFA'ing him accomplish that?
3. 40 man not full -- got it.
4. He can refuse -- got it.
5. He would rather be a FA -- so they do him a solid?

Basically, they wouldn't DFA a guy they want to get rid if he can refuse, or they want to be nice. Assuming they want to get rid of him (which I thought was implicit in the question) and the 40 man is full.

 

[LHG]

I'm just going to plant this one here - What Luiz Gohara Taught Me About Rule 5 Draft Eligibility | BaseballAmerica.com

Its an interesting read about Rule 5 eligibility and a loophole that may not exist any longer.

 

[LHG]

Some important dates and information to remember about this offseason, courtesy of Baseball America:

A road map of important offseason transaction deadlines and what those dates mean for major league organizations.

Nov. 6
5 p.m. Eastern
Free Agent Period Opens

Following a five-day “quiet period" after the World Series, all free agent-eligible players who have not executed contracts for the 2018 season are free to sign with new teams. This includes major league players with at least six years of major league service and also minor league players, i.e. those not on 40-man rosters, with no contract renewals remaining.

A note about minor league free agency:

Amateur players sign a minor league contract—or Uniform Player's Contract—when they turn pro with a major league organization. The UPC grants the organization six renewal seasons, which is where the misnomer “six-year free agent" derives. In fact, most players put in seven years—their debut season plus six renewals—before they qualify as minor league free agents.

Members of the 2011 draft class still bound by their UPCs will be eligible for minor league free agency for the first time this offseason.

The majority of minor league free agents sign one-year successor deals with new organizations, which means they will again qualify as minor league free agents after the 2018 World Series, assuming they aren’t on a 40-man roster.

Nov. 20
8 p.m. Eastern
Reserve List (or 40-Man Roster) Filing Deadline

All organizations set their 40-man rosters (or reserve lists) for the Rule 5 draft on this date. The Rule 5 draft has existed in some form since 1903, and it aims to redistribute minor league players—as long as they meet certain conditions—to organizations willing to play them in the major leagues.

Any player who appears on a 40-man roster on this date is ineligible to be selected in the Rule 5 draft, but for those players who miss the cut, the major league phase of the Rule 5 draft can spell opportunity. In recent years, the number of players eligible for the major league phase has reached as high as 1,700.

In most cases, players are eligible for the major league phase of the 2017 Rule 5 draft if they are not on a 40-man roster and meet one of the following conditions:

• They signed out of college or junior college in 2014 (or earlier)

• They signed out of high school or as an international amateur in 2013 (or earlier)

The cutoffs are actually age-based—19-and-older in the first group and 18-and-under in the second—and there are exceptions based on signing date, but the rule of thumb above applies to most players.

Teams also set their minor league rosters on this date in preparation for the minor league phase of the Rule 5 draft. Those roster limits are 38 players at Triple-A, 37 players at Double-A and 35 players at all other levels (Class A, short-season and Rookie-level).

Dec. 1
8 p.m. Eastern
Tender Deadline

On this date, organizations must tender a 2018 contract to all 40-man roster players who are arbitration eligible or still in their pre-arb years. In each of the past two years, more than 35 players were not tendered contracts by the deadline, making them non-tender free agents.

Notable non-tenders from 2015 include Rockies reliever Greg Holland (after taking a year off) and Braves catcher Tyler Flowers. Nobody from the 2016 class has emerged, but Braves reliever Jacob Lindgren, a 2014 second-round pick of the Yankees, has bounceback potential if he makes a full recovery from Tommy John surgery.

Dec. 14
9 a.m. Eastern
Rule 5 Draft

The impact potential of Rule 5 draft picks is modest, but at least one interesting or useful player is selected each year. Recent examples include Orioles outfielder Anthony Santander (2016 draft), Cardinals reliever Matt Bowman (2015), Rangers outfielder Delino DeShields Jr. (2014), Yankees reliever Tommy Kahnle (2013), Cubs reliever Hector Rondon (2012) and Astros outfielder Marwin Gonzalez (2011).

For more details on Rule 5 draft machinations, including the mysterious minor league phase, please see this J.J. Cooper entry from 2016.


Read more at Important MLB Offseason Dates | BaseballAmerica.com

 

[LHG]

From MLB.com:

Glossary / Transactions / Non-tendered
Non-tendered
Definition

When a club "non-tenders" a player, it declines to give that player a contract for the upcoming season, thereby immediately making him a free agent. Players on the 40-man roster with fewer than six years of Major League service time must be tendered contracts each offseason by a set deadline -- typically a date in early December -- or non-tendered and released to the free-agent pool.

In many instances, a club will non-tender a player because it feels the raise he will receive in arbitration would be greater than his on-field value. In other cases, a club will non-tender a player simply to clear a spot on the 40-man roster -- even if that player isn't due much more than the league minimum the following season.

Examples
Henderson Alvarez was due to receive $4 million or more in arbitration following the 2015 campaign, in which he made just four starts before undergoing season-ending shoulder surgery. Rather than tender a contract to a player with major durability concerns, the Marlins non-tendered Alvarez in December 2015.

Also in December 2015, the Astros elected to non-tender first baseman Chris Carter rather than pay him a raise on his $4.175 million salary from the prior season. Carter had belted 90 homers with Houston from 2013-15, but he also batted just .218 while striking out in 33.7 percent of his plate appearances during that span.

And though James Jones was not eligible for salary arbitration and would have made scarcely more than the league minimum in 2016, the Rangers non-tendered him in December 2015 to open a 40-man roster spot for further offseason maneuvering. Texas soon re-signed Jones to a Minor League contract, keeping him in the organization without expending a 40-man roster spot.

 

[LHG]

Players get 3.



Glossary | Minor League Options | MLB.com

 

[calsnowskier]

This site lists everyone’s remaining options...

San Francisco Giants 2017-18 Offseason

 

[SFGRTB]

This site lists everyone’s remaining options...

San Francisco Giants 2017-18 Offseason

They also have the rule 5 status. I don't remember seeing that, but it's very handy.

 

[LHG]

Yes on 1, 2 and 3. The order on waivers (at this point) is reverse order of last season's W-L record, independant of league. (In Aug/Sep, revocable waivers first clear every team in the same league, then go to the other league - but not now.) And yes, if claimed or traded the new team pays his salary. Dickerson has more than 3 years service time, so he can refuse being outrighted to the minors (as if he is going to clear waivers). Since he has a signed contract - it is in force, and he will be paid whatever his contract says - even when playing in the minors. He also has LESS than 5 years service time, so if he refuses his assignment, he walks away from his contract.




Normally, contracts are guaranteed. HOWEVER, there's a weird case: if a player has a one year contract, and he is released before a certain date of spring training, he only gets a portion of his contract, and become a free agent (2 dates actually - he is paid more if released later; "16 days or more before start of season": 30 days pay, "between 16 and 1 days before start of season": 45 days pay).

Concerning Pence :
- he isn't on a 1 year contract, so the entirety of his remaining contract is guaranteed even if only a year
- I remember sooooooo many people saying that Pence was worth his contract, even if he sucked the last couple of years of his contract. Time to eat crow, folks.

 

[LHG]

Important dates for trhe 2018-2019 offseason, courtesy of CBS Sports:
Nov. 12: Deadline for free agents to accept or reject the qualifying offer. Players who accept the qualifying offer sign that one-year, $17.9 million contract and remain with their team. Players who reject the qualifying offer are attached to draft pick compensation. Their former team receives a draft pick should they sign with a new team, and their new team has to forfeit a draft pick and international bonus money. (The exact penalty depends on the team's revenue sharing and luxury tax situation.)
Nov. 14-15: Owners meetings in Atlanta. The owners meetings handle off-the-field business matters. These typically aren't a big source of hot stove news.
Nov. 20: Deadline for teams to add eligible minor leaguers to the 40-man roster to protect them from the Rule 5 Draft.
Nov. 26-29: MLB Players Association executive board meeting in Dallas.
Nov. 30: Non-tender deadline. This is the deadline for teams to offer their pre-arbitration and arbitration-eligible players a contract for 2019. They don't have to sign them just yet, but they do have to offer a contract. Players who do not receive a contract offer and considered "non-tendered" and thus become free agents.
Dec. 9-13: Winter Meetings in Las Vegas.
Dec. 13: Rule 5 Draft.
Jan. 11: Deadline for teams and arbitration-eligible players to submit 2019 salary figures.

 

[LHG]

Thought it would be better to place the 2020 rules on this thread. Here's the first link - Explaining The 2020 MLB Roster Rules