Let’s clarify, shall we?

Owners, I asked Commissioner Emeritus Overstreet to get an exact ruling on free agent bids in terms of financial responsibility. Here is what his research shows:

“Any FA signed for $10+ is automatically on a 2-year guaranteed contract. So to buy him out, you must pay double his salary or $100, whichever is greater. Of course, we pay 10% of the stated fees.”

So in my earlier example of Mark Teixeira being signed for $176, his responsibility was 10% of $352 (double 176), or $35.20. If Adrian Gonzalez goes for, say, $50, the financial responsibility if that contract is not kept would be $10 ($50 x 2 = $100, then 10% of the total). That money would go into NEXT year’s kitty.

In terms of the Boston guys, this formula would be in effect for their contracts this year and next. For 2014, if he’s still on your roster, he could be dropped for only 1 time the salary. In the Gonzalez example above, that means you could drop him after 2013 but before the start of 2014 or during 2014, for $5, not $10. And after 2014, his contract (provided you don’t extend) would be up and eligible to be dropped for no penalty.

The Boston guys will be parceled out early Tuesday morning, so make sure any bids you are planning are in by Monday night. Remember, you have to drop a player from your 25-man active roster as your corresponding move. You can move a player up from your reserve roster to active status ONLY if that player is currently active on a major league roster. You can’t make active a player from your reserve list who is in the minors or currently on the DL.

Gary Robinson posted at 2012-8-26 Category: Baseball

One Response Leave a comment

  1. #1maryellen.Revelife.Com @ 2013-4-20 00:47 Reply

    This is a topic that is close to my heart… Many thanks!

    Where are your contact details though?

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