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MLB, NPB agree to a new posting system

Dec 10, 2013, 9:52 AM EDT

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It’s been a long time coming — and was mostly agreed to a couple of days ago — but Joel Sherman of the New York Post reports that MLB and NPB have an agreement in place on a new posting system that now only requires ratification by baseball’s executive council. That approval is expected.

The new posting system will have a $20 million bid maximum and all teams who meet the cap will be able to negotiate with the player. It’s hard to see how the posting system helps the NPB all that much. A $20 million cap is lower than past posting amounts. It will greatly help the player, however, as he will now have the chance to pit multiple teams against one another in negotiation, whereas before he was limited to negotiating with only the highest bidder.

Masahiro Tanaka could be the first major player involved in the new posting system, but the Rakuten Golden Eagles have yet to decide whether they’ll make him available. Representatives from the Golden Eagles are here in Orlando today, where it is expected that they will make the decision, one way or the other.

  1. rje49 - Dec 10, 2013 at 10:09 AM

    Great. Now what team that needs starting pitching has the means to offer the most bucks??? No, not the Rays. And not the Pirates. Let’s hear it.

  2. pastabelly - Dec 10, 2013 at 10:24 AM

    Assuming this does not stop the Yankees from signing Tanaka, here is the math if the Yankees sign him to a six year deal at $20 million per year. I believe the luxury tax increases to 50% for consistent repeat offenders like the Yankees.

    Posting fee = $20 million does not count toward luxury tax.
    2014-2019 Player Cost = $30 million to NYY $20M = $10M luxury tax.
    Six Year Average Cost including tax = $33.3M

    2014 is a key year for the Yankees. Anytime a team gets under the luxury tax threshhold, the tax rate gets reset to 17.5%. This isn’t happening anytime soon for NY IF they want Tanaka.

    The same contract will cost teams under the threshhold $10 million less per year. All considered, I still believe that the baseball needs of the Yankees combined with the YES revenue potential of a Tanaka signing make the Tanaka Yankees signing still the most logical move. As a Sox fan, I hope the move fails or never happens.

    • rje49 - Dec 10, 2013 at 2:06 PM

      Yep, that’s the one, of course.

  3. pastabelly - Dec 10, 2013 at 10:55 AM

    Laughing at the thumbs down on this one. What’s wrong? My math? $20M a year for six years of Tanaka too high/low? Not a good value in terms of YES revenue and ratings? Hoping that if he signs with NYY that it fails? I suppose I gave you guys enough to give this a thumbs down. :)

  4. dcburden - Dec 10, 2013 at 1:30 PM

    As for how this helps the NPB – maybe they wanted to reduce the incentive for their clubs to post players, to keep talent in the league. I imagine it’ll be a lot easier for a club to turn down $20M than $50M, and they’re individually more willing to give up that opportunity if the other clubs do so as well, presuming that retaining talent in the league increases revenue for all.

    • mikhelb - Dec 10, 2013 at 4:12 PM

      It helps the MLB too, they’ve been devising ways to put a curb on the importation of players to inject more money in the development of US players.

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