Hot Stove League

The Major League Baseball off season is one of the most captivating off season's in sports. On the very first day of NFL free agency, virtually every big name signed. Not in baseball. We are ten days into the free agent market and thus far none of the big names are even reportedly close to signing. The intricacies of the MLB regulations are quite confusing. Here is a crash course in everything you could possibly wonder about baseball's off season.

Free Agency
Players are eligible for free agency after they have accumulated six years of Major League service, provided they have not signed a contract.

Arbitration
Players are eligible for salary arbitration after three years of Major League service. Before three years, organizations can renew a contract of a player for any amount they see fit, provided it is at least the league minimum.

Any player with an expiring contract who is unable to reach a new deal can be offered arbitration by their current organization. If the player accepts, the team and player will exchange salary figures until a deal is reached or taken to a hearing. If the player declines arbitration, the team will receive draft pick compensation from the team who signs the player. Two draft picks are awarded for Type A free agents and one draft pick is awarded for Type B free agents.

Rule 5 Draft
Any player signed at the age of 19 or older has four years to be placed on a Major League 40-Man roster. Any player signed at the age of 18 or younger has five years to be placed on a Major League 40-Man roster. If the player is not on a 40-Man roster at this point, they are eligible to be selected in the Rule 5 Draft. The draft order is determined by the previous season's standings, with the team with the worst record selecting first.

If a team selects a player in the Rule 5 Draft, they must keep them on their Major League roster for the entire season or return the player back to the team they selected them from. It costs $50,000 to select a player in the Rule 5 Draft.

Japanese Posting System
Any player under contract in the Nippon Professional Baseball league wishing to play in the MLB must following the Posting process. The Japanese league team will notify the Commissioner who then notifies all 30 MLB teams. Teams then submit sealed bids to the Commissioner. The Commissioner then notifies the NPB of the highest bid, without revealing which team has submitted it. The NPB team has four days to accept or reject the bid. If accepted, the MLB team then has 30 days to negotiate exclusively with the player's representatives. If a contract is reached the posting fee is paid directly to the NPB team. If a contract is not reached, no money is paid to the NPB team.

So there it is. Without a salary cap, baseball organizations have always seemed simple to run, however you can see how complicated it can get. Any questions or further clarifications needed? Comment on this post and I'll be glad to further explain any of the above.