After three complete minor league seasos,, a major league team must decide if they want to keep a particular player or not. If their decision is to keep a specified player, they must sign the player to a major
league contract. In so doing, the assign the player to the teams 40 man roster.
If a player is not placed on the 40 man roster, he is then eligible for the Rule 5 draft. Another organization
can draft the player for $50,000. There is a risk involved in the Rule 5 draft: If the drafted player is not kept on the
active 25 man roster for the entire next season, he must be offered back to the original team for $25,000.
A player not on the 40 man roster and not taken in the Rule 5 draft remains under contract with the team
he is currently assigned to. He can elect to take minor league free agency instead of going in the Rule 5
draft, but players want to be selected in the draft because it represents what could be a fast track to the majors,
leaving a team that believes the player should not be included on the 40 man roster.
This concludes my blog on "The Business of Baseball. It is my sincere hope that you have enjoyed what I have written over these past several weeks, and has given some helpful insights on "This Business of Baseball."
This blog is prepared by a paralegal student as a class project, without compensation. The content of this
blog contains my opinion, and is offered for personal interest without warranty of any kind. Comments posted by others on this blog are responsibility of the posters of those messages. The reader is solely responsible for verifying the content of this blog and any linked information. Content, sources, information, and links will most likely change over time. The content of this blog may not be construed
as legal, medical, business, or personal advice.david.mosher3993@my.sinclair.edu
Interesting! I had no idea about this rule. I wonder how the players feel when they are placed on this list--is it demoralizing?
ReplyDeleteI've enjoyed this post on the Business of Baseball. I have learned quite a bit reading this post. I especially enjoyed the history of baseball in the US.
Good work!