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MLB could reach deal on new posting system soon

Dec 1, 2013, 11:30 PM EST

Masahiro Tanaka AP

Major League Baseball and Japanese baseball officials have been negotiating the details to a new posting system throughout the off-season, which will have a big impact on the future of pitcher Masahiro Tanaka. Some suggested changes reported a few weeks ago included the winning team paying an average of the top two bids on a posted player and fining teams that bid for a player but fail to sign him.

David Waldstein of the New York Times tweets that the two sides could reach a deal soon as they have narrowed it down to three possible outcomes for the new posting system. The details of the three are as yet unknown. If and when a deal is struck, expect the rumor mill for Tanaka to heat up quickly. Jon Heyman of CBS Sports suggested last week that the Yankees, Cubs, and Dodgers are all expected to show interest while the Giants and Rangers could get invovled as well.

  1. NYTolstoy - Dec 2, 2013 at 4:19 AM

    Most likely the team that will over bid for tanaka will be one of the Top 10 spenders in the league. Yankees are said to be strong favorites since the signing won’t count against their 189 goal. Imagine though if the Dodgers just go in and take it? That would be video game crazy, that would make Dan Haren their #6 Starter. I don’t know how a team like the D-backs, Padres, or Rockies can compete with that.

  2. uyf1950 - Dec 2, 2013 at 5:55 AM

    It would be nice if MLB could finally come to some resolution with this so we can find out out not only what’s going to happen with Tanaka but the rest of the pitchers who are FA’s as well. It appears teams are waiting for Tanaka before they commit to some of the others like, Garza, Jimenez, etc…Just get it done.

  3. pastabelly - Dec 2, 2013 at 8:11 AM

    I don’t understand the Yankees goal of getting under $189M goal to avoid a luxury tax if they are just going to overspend on a foreign player. If the posting fee is $100M and they sign Tanaka to fives years at $50M, then they would be paying $30 million per year for Tanaka. That’s more than $25 million and a luxury tax on it. Am I missing something here? I just don’t get the difference between paying an outrageous posting fee and paying luxury tax.

    • ewyorksockexchange - Dec 2, 2013 at 9:36 AM

      As far as I am aware, the current posting system doesn’t force the signing team to include the cost of the posting fee in their calculation of salary for the luxury tax. So they would only count the actual salary paid to Tanaka as salary, not the posting fee. There has been talk of changing this, but I don’t believe it has actually happened yet.

    • uyf1950 - Dec 2, 2013 at 11:24 AM

      @ Pastabelly, Hal Steinbrenner has said many times he has no objection to spending money on the Yankees. He absolutely hates subsidizing other teams and that’s what the Yankees have been doing by exceeding the Luxury Tax Threshold. Since the posting fee is not charged to a teams payroll and therefore NOT subject to MLB’s Luxury Tax calculation that money does NOT go to subsidize other teams.

      @ ewyork…., As I mentioned above and you correctly stated the posting fee does not get charged to a team payroll calculation. But the reason that has no chance of changing for at least the next 3 season through the 2016 season is that is written into MLB’s CBA with the MLBPA and the Players association has stated they have no intention of re-opening the CBA to change it. So for the time being and at least through 2016 the posting fee for players will NOT be charged to a teams payroll calculation for Luxury Tax purposes.

  4. scoutsaysweitersisabust - Dec 2, 2013 at 9:08 AM

    Let me guess. It will be a system that benefits the richest 5 or 6 teams in Baseball, completely eliminating the rest of the league from even getting involved.

  5. stex52 - Dec 2, 2013 at 9:58 AM

    This was discussed before, but it is still true. A Vickrey auction should have the effect of making teams bid higher toward their true valuation of a player. This isn’t quite that because they pay an average of the top two. But it should have a resemblance. But I think the team that wins paying a fine will keep the rich teams from going rogue.

    In the end you can’t do too much about the rich teams getting their shot. But even they have to be smart with their money and, in general, they haven’t been lately. So, it they do get a lot of big deals, the rest of the league just needs to take their revenue sharing and be smart with the money. Most big long-term contracts are busts these days.

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