The Nationals agreed to sign free agent closer Rafael Soriano to a two-year, $28MM contract, Yahoo's Jeff Passan reports (Twitter links). The deal includes a 2015 option valued at $14MM that will vest if Soriano finishes 120 games over the course of the next two seasons. Agent Scott Boras represents Soriano.
The vesting option means that he will be their closer.
The Nationals will lose a draft pick for signing Soriano, and the Yankees will obtain a compensatory selection for their loss. The Nationals stand to lose the 29th overall selection, while the Yankees are now poised to gain the 32nd overall selection.
Soriano's deal resembles the two-year, $30MM contract Mariano Rivera signed with the Yankees before the 2011 season. Non-relievers such as Ryan Dempster, David Ortiz and Torii Hunter signed two-year deals worth a comparable amount earlier this offseason.
< The Nationals will lose a draft pick for signing Soriano, and the Yankees will obtain a compensatory selection for their loss. The Nationals stand to lose the 29th overall selection, while the Yankees are now poised to gain the 32nd overall selection. >
I know the team losing the pick loses the "slot money" from their pool, but can't find anywhere if team's that get compensation picks get any additional "slot money" in their pool for the added pick. Do you know?
They do. The pool is just the total amount of the slot worth of your picks. The team that loses a pick loses that slot money essentially because they don't have that pick anymore - same reason you lose the money if you don't wind up signing the player you picked. If you have an extra pick, you automatically get extra money.
The whole draft pool is just an artificial after-the-fact thing, really. Total up the amount you spent on the draft picks you signed and wind up comparing it to the slot value for each of the picks you signed. If it's 5% over, you lose a pick the next year.
I was watching MLB network yesterday and they felt it was a big deal to lose that money.
I have no idea why? If you are not signing the 24th pick, why do you need the money to sign the 24th pick.
It is a double loss. If you lose the pick, you also lose the $ allocated to the pick so that you cannot spend those allocated $ on another pick. This rule levels the playing field.
The Angels of course will be losing the 22nd pick for signing Josh Hamilton but his signing was worth it.
If the slotted 20th pick cost you 3 to 3.5 million and you lose the draft pick and 3 to 3.5 million, then don't you still have the same amount of money to spend for all your other picks as you did before.
I don't get it. I'm missing something.
The new collective bargaining agreement addresses how money is spent in the draft. Teams that go over budget on their bonus pools will be taxed and could lose picks. Major League Baseball has also suggested bonus values (also known as slotting) for each pick through the first 10 rounds. This is another form of a luxury tax, and an attempt to stop agents like Scott Boras from holding teams hostage by holding out top players seeking huge bonuses.
Each team's pool is based on its draft position and number of picks, plus the amount spent in the previous year's draft. For the 2012 draft, these pools ranged from $4.5 million to $11.5 million. If a team goes over its threshold by 5 percent or less, it must pay a "luxury tax" of 75% on the amount over the threshold. Teams that go 5 to 10 percent over must pay a 100% tax on the excess, and will lose their next first-round pick. A team that goes 15 percent over can lose its next two first-round picks, in addition to the "luxury tax". These excess picks will go to smaller-revenue teams.
This is new to me but the way I understand it is that in your example, your overall bonus pool is reduced by 3 to 3.5 million since you lost the 20th pick. The total $ that you spend in the draft's 1st 10 rounds is compared to the pool of $ allocated to your picks ( in your example now reduced by 3 to 3.5 million ). If you overspend, you have to pay a luxury tax and could lose picks in the following year's draft.
Wow, wonder if they were bidding agains themselves. That looks like a bad deal for the Nats. Great job by Boras. No way I thought Soriano could get that kind of deal. "
It's probably about 4M high but since the Nats are in a win now mode I don't think it's horrible. The 3rd year is unlikely to vest since he's never hit 120 before. If he's the piece that you think is coming to get you over the hump and it's short term, it might make sense. The Angels are paying a guy coming off TJ surgery 7M. The Nats will now have very good bullpen to go with a good starting rotation. They now have 6 Boras clients so maybe there was a back room agreement going on to help Boras save face.
That's great info, thanks. But I'm still confused because the Angels are not spending the 3.5 million on the 22nd draft pick. The powers that be are taking away the money they would have spent.
I guess since the amount of money is smaller, it's easier to go over by a percentage of 5%.
And now there are two!
Michael Bourn and Kyle Lohse, two other Boras clients, are now the lone remaining free agents still linked to draft pick compensation.
Read more at http://www.mlbtraderumors.com/#WFogk5Owphi9TlMT.99
I wouldn't mind seeing Kyle Lohse in Halo red but Arte may have given Boras a one time offer that expired in 24 hours weeks ago.