What is International Amateur Free Agency?

Overview

MLB clubs fill out their minor league rosters in a variety of ways including; minor league free agency, through the MLB Rule 4 Draft, and international amateur free agency. 

Young players from across the globe, when eligible, can sign with MLB teams and begin their professional careers. Some of the greatest players in the MLB today and throughout history signed as international amateur free agents. 

Such players include; Roberto Clemente from Puerto Rico, Vladimir Guerrero from the Dominican Republic, and Ronald Acuna Jr. from Venezuela.

Signing Period

Under the current MLB CBA, the annual amateur international free agent signing period runs from July 2nd through June 15th of the following year. Teams and players can agree to contracts during this period if the player is eligible.

Player Eligibility

International players are eligible if they meet the following criteria:

  • The player resides outside of the United States, Canada, or Puerto Rico and has not been enrolled in high school in any of these nations during the prior year.
  • The player is currently 16 years or older, or will be turning 16 no later than September 1st of the current signing period.

Bonus Pool

Beginning in 2017, when the current CBA was enacted, teams will begin each period with $4.75 million to spend on international amateur free agents. This amount of money is their bonus pool. Teams can gain or lose bonus pool funds for a variety of reasons. 

Teams that are over the luxury tax and sign an MLB free agent that rejected the qualifying offer, will lose $1 million of their bonus pool funds. Teams that are not over the luxury tax and sign an MLB free agent who rejected the QO will lose $500,000 in bonus pool funds. 

Clubs that have a pick in Competitive Round A of the MLB Rule 4 Draft, will see their bonus pool bumped up to $5.25 million, while teams that have a pick in Competitive Round B will see theirs pumped to $5.75 million. 

Additionally, teams can trade for/away bonus pool money in $250,000 increments. As of the 2019-2020 signing period, teams can only increase their bonus pool by 60% via trade. This means a team with $4.75 in initial bonus pool funds can only increase their total funds to $7.57 million via trades.

MLB club’s bonus pools dictate how many players they can sign during the international signing period. A team with $5 million in bonus pool money could sign two players for $2.5 million each, three players for $3 million, $1.5 million, and $500,000 respectively, or any number of combinations. 

Another stipulation of the international bonus pool is that players signed for less than $10,000 do not count against the MLB club’s bonus pool for that session. Essentially, the bonus pool only covers players signed for greater than $10,000.

Summary

International amateur free agency is an exciting way for MLB teams to add talent to their organizations. Great players from Latin and South America, the Caribbean, and other regions of the globe begin their promising careers through the international amateur free-agent market.

There is a great strategy for MLB teams about which areas to heavily scout and how to most efficiently use bonus pool funds. The next generation of MLB stars may be currently signing or waiting to sign their first professional contracts from across the globe.

Related Links:

https://www.mlb.com/glossary/transactions/international-amateur-free-agency-bonus-pool-money


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