THE YEN & YANG
Brian Cashman’s visit to Japan, to get a firsthand look at sensational Hokkaido Nippon-Ham Fighters pitcher-outfielder Shohei Otani, has shined a spotlight on baseball’s rules concerning international player signings. Yes, it’s true: If Otani plays in Major League Baseball next year, he will make a pittance relative to previous high-profile Japanese guys like Yu Darvish, Daisuke Matsuzaka and Masahiro Tanaka. The Post’s Ken Davidoff breaks down why that is and what to expect if the Otani sweepstakes take place this winter. Q: All we hear about is how talented Otani is. Why wouldn’t he exceed the seven-year, $155 million package the Yankees gave Tanaka in January 2014? A: Because a new collective bargaining agreement has been negotiated in the interim, and because Otani just turned 23 last month. Under the CBA, announced late last year, international players under 25 are subject to a severe cap on their signing bonuses. Q: How severe? A: The signing bonus pool, which applies to all players under 25 outside the United States, varies depending on your team’s market size. It can be as high as $5.75 million for the smallestmarket clubs. The Yankees and Mets, residing in the largest market, receive a $4.75 million pool. That’s the total they can spend on all international free agents.
Q: Is there any way to increase that modest number?
A: Yes, and the Yankees and Mets have taken steps to do that. As per the CBA, clubs can trade for up to 75 percent of their signing-bonus pools, meaning they could both max out at $8,312,500 million ($4.75 million plus $3,562,500). Jon Heyman of FanRag Sports reported last week that the Yankees and Red Sox have both traded for $3.25 million of signing-bonus money, giving them $8 million, whereas the Mets have added $1 million.
Q: And then they can exceed that and pay a heavy tax on the overage, right? That’s what the Red Sox did in 2015 with Yoan Moncada?
A: Wrong. This CBA allows no such loophole. Furthermore, many clubs already have committed some of that to Latin American talent. The Yankees, for instance, gave $1.5 million to Venezuelan outfielder Everson Pereira, as MLB.com first reported. They gave a combined $1.85 million to four other players, as per Baseball America. So that knocks their total down to a maximum of $4.65 million.
Q: Wow, that creates a relatively even playing field for all 30 teams. What would prevent the Yankees from, say, verbally guaranteeing Otani a 10-year, $250 million “extension” after his rookie season?
A: I am offended by the mere suggestion of such impropriety. But as MLB and the Players Association detailed in their joint press release about this CBA, “The Commissioner may impose strict penalties on any Club that attempts to circumvent the system.” It’s hard to imagine any such illicit efforts would stay quiet for long. Also, keep in mind there also will be a posting fee to the Fighters, as Otani is not yet eligible for free agency in Japan. The current posting agreement calls for the Japanese team to receive $20 million from the MLB club that signs its player. That will thin out the crowd somewhat. But for sure, if Otani crosses the Pacific this winter, it won’t be for a huge payday, and his decision fundamentally can’t be driven by dollars and cents.
Q: Is the signing bonus subject to the luxury tax?
A: No. It’s no different than signing bonuses to any amateur players, be they U.S.-born and drafted or signed out of Latin America. However, Otani (or any other such player) would earn a salary under the normal structure — minimum wage in his rookie year and so on — and that would fall under the luxury tax.
Q: Shouldn’t Otani just play in Japan two more years and then, at age 25, score big for the 2020 season?
A: It’s not like he’d make a ton more money by staying in Japan, and it appears he’s ready. If he’s anywhere as good as advertised, he’ll get his haul eventually. He’ll just have to earn it in the majors, more like a drafted and developed player.