Rule 5 Draft

You might have heard that baseball’s Winter Meetings have been going on in Dallas this week. There’s been a lot of action with trades and free agent signings because all 30 teams are represented, and it’s the best time in the offseason to shop for players. The Miami Marlins made a big splash (Get it?) by acquiring Jose Reyes and Mark Buehrle, and making a massive offer to Albert Pujols*. There’s been plenty of other action that we will get to later in the offseason, but first we want to give you a preview of the Rule 5 draft taking place today.

*10 years and $250 million with a no-trade clause to the Angels! Wow! I didn’t see that one coming yesterday.

You’ve probably heard of the Rule 5 draft. You might know that Johan Santana was a Rule 5 acquisition. You’re favorite team may have stashed away a Rule 5 pick-up in their bullpen last season. Ok, well what the hell is the Rule 5 draft?

The Rule 5 draft aims to prevent teams from stockpiling too many young players on their minor league teams. Players are eligible to be selected in the draft if they are not on their major league organization’s 40-man roster AND: signed their first professional contract at the age of 19 or older and have been in the organization for four years, OR signed their first professional contract at age 18 or younger and have been in the organization for five years.

The selecting team pays the team they are taking the player from $50,000 for the rights to his contract. If chosen in the Rule 5 draft, a player must be kept on the selecting team’s 25-man roster for the entire season after the draft. They can’t be optioned to the minors. Once a draftee spends the entire season on the 25-man roster, the team is free to option him or designate for assignment. A player taken in the Rule 5 draft may be traded during the Rule 5 season, but the same restrictions are transferred to the new team.

The selecting team, or the team he was traded to, may waive the Rule 5 player and offer him back to the original team for $25,000. Basically, if a team selects a player that is not protected on another team’s 40-man roster, they are making a large investment by keeping them on their 25-man roster all season. That is a roster spot that could be used by another player in the organization. Because of this, teams tend to select players that can be “hidden” on the major league roster. Utility infielders and situational relief pitchers are commonly selected because they provide depth.

Sometimes teams select diamonds in the rough through the Rule 5 draft. Roberto Clemente is the only Hall of Fame Rule 5 acquisition, but there have been many All-Stars. Jose Bautista, Bobby Bonilla, Josh Hamilton, Alexi Ogando, Scott Podsednik, Johan Santana, Joakim Soria, Dan Uggla, Shane Victorino, and Jayson Werth are a few Rule 5 players who became successful in the major leagues. Keep an eye for players selected this season for the next Jose Bautista.