2013 MLB Draft: Potential Penalty Figures for Cubs

Last year MLB and the MLBPA agreed to some draconian rules regarding the draft. Gone were the days when you could spend whatever you want. You might think that MLB may have adopted some penalties that may still have allowed teams to go over their first 10-rounds budget, but they made the penalties so damn harsh that they essentially eliminated the possibility.

Here are the basics for the 2013 MLB Draft:

  • Each team gets a budget based on the combined slot values of where they pick in each round.
  • There is a 75% tax on any overage up to 5%
  • A 75% tax for overage between 5-10% and the loss of next year's first round pick
  • 100% tax on overage between 10-15% and the loss of next year's first and second round picks
  • 100% tax on overage over 15% and the loss of the first round picks in the next two drafts

The Cubs budget this season is $10,556,500 and below is a table that has the total amount of money the Cubs could spend on draft picks and taxes for 5%, 10%, 15% and greater than 15%.

% Over Maximum Penalty Total
0% $10,556,500 None $10,556,500.00
5% $11,084,325 75% tax on overage $11,480,193.75
10% $11,612,150 75% tax on overage, loss of next season's 1st round pick $12,403,887.50
15% $12,139,975 100% tax on overage, loss of next season's 1st and 2nd round picks $13,723,450.00
15%+ $12,139,975+ 100% tax on overage, loss of  1st round pick next two seasons $13,723,450.00+
  • The cash penalty up to 5% over is $527,825.
  • Between 5-10% it's $1,055,650
  • The 10-15% would be $1,583,475
  • Spending more than 15% over would cost the Cubs more than $1,583,475.

Safe to say that no team will give up a 1st round pick. The Cubs will probably try to play it as close to their allowable budget as they can. It gets costly otherwise.

Here's the slot value for each pick, but remember this doesn't matter as much as the overall budget in the first 10 rounds.

Round Pick Assigned Value
1 2 $6,708,400
2 41 $1,361,900
3 75 $736,200
4 108 $477,300
5 138 $357,400
6 168 $267,600
7 198 $200,400
8 228 $159,400
9 258 $148,900
10 288 $139,000
  Bonus Pool $10,556,500
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