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MLB, NPB discussing new posting rules

Nov 30, 2012, 4:40 PM EDT

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Jeff Passan of Yahoo! reports that Major League Baseball and Nippon Professional Baseball are discussing changes to the posting system. Talks are just starting and won’t affect anyone for the 2013 season, but the hope is to have something new in place for next winter.

As you know, the posting system involves teams blindly bidding for the rights to negotiate with the Japanese player who is seeking to come to the U.S.  The Japanese player’s NPB team picks the highest bidder who then tries to strike a deal with the player. If they do, the MLB team pays the player and the posting fee.  If they don’t, the posting fee is returned.

As Passan notes, the upshot of the negotiations involves MLB’s desire to have the bidding for negotiation rights to be open, so that the winning bidder need only top the next highest bid by a little, rather than make blind offers.  Such a system would be more efficient (and obviously cheaper) for the MLB teams and would allow for the player to get more money in his pocket. After all, if a team had $100 million to offer a stud NPB player, an efficient system would allow, say, $35 million to go for posting and $65 million to the player as opposed to, say, $50 million to posting and $50 million to the player. Oh, and if the more dollars could go to the player, it’s more likely that they’d sign in the U.S., thus actually allowing posting fees to be paid to NPB teams instead of being refunded.

Efficiency: it’s what’s for dinner.

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