Questions with 100% Correct
Answers
Rule 4 Draft (amateur; Eligible Players) - Answer- 1. Residents of the U.S., Canada,
Puerto Rico, any other commonwealth of US.
2. Subject to High School/College/Junior College rules.
3. 40 Rounds.
4. Players can only sign a Minor League K.
Rule 4 Draft (signing bonus pools) - Answer- - Pools are aggregate of signing bonus
values that a club has in first 10 rounds of draft.
- Players selected after the 10 th round do not count against a club's pool if they sign for
less than $100K.
- When drafted, club can offer any amount to sign (not restricted by "slot")(they are just
taxed on overage).
Rule 4 Draft (Failure to Sign) - Answer- - A drafted player who does not sign and
attends a four-year college is not eligible for the draft again until he completes his junior
year or turns 21 years old.
** undrafted players can sign with any club.
Rule 5 Draft - Answer- - Allows MLB clubs to select K's of players on other club's minor
league reserve lists
- Occurs each year in December at annual GM winter meetings
- MLR (5)(c) covers players eligible for this selection
o If player is added to his club's MLB 40 man roster he is no longer eligible for Rule 5
draft.
o If player is selected in Rule 5 draft..... he is immediately placed on new club's 40 man
roster.
o If selected..... must be kept on new club's 25 man roster entire next season or placed
on waivers.
Split K - Answer- - Provides different rates for Majors vs Minors.
- Very relevant in release & assignment cases.
Termination Pay - Answer- Amount is determined by:
A. When Player Released:
- During offseason and before spring training Paid for 30 days.
, - During spring training but prior to last 15 days before opening day -> Paid for 30 days.
- During last 15 days before opening day Paid for 45 days.
- During season Paid full unpaid balance of salary.
- If split K, depends on whether in Majors/minors.
B. Type of K signed:
- If player released from guaranteed K receives balance pf K subject to non-duplication
provisions.
*All Termination pay subject to non-duplication provision*.
Trades - Answer- - Player being assigned from one club to another for consideration.
- 10& 5 Rights
- If player on active MLB roster for ten full seasons and on one team for last 5 seasons,
can't be traded without consent.
Transactions - Answer- - Rosters (25 man/40 man)
- Optional Assignments
- Outright Assignments
- Trades
- Waiver Clauses
- "Designation for Assignment"
- "Unconditional Release"
Unconditional Release - Answer- - Notice of Unconditional Release; waivers; contract is
terminated.
- UR Notice free to shop; term pay; FA.
UPC (Generally) - Answer- - UPC may be improved upon w/ special covenants..... but
sections and clauses in UPC may not be replaced/deleted.
Uniform Player's Contract (Special Covenants) - Answer- - Can't contain provisions that
give player bonuses for skill or club's standing at the end of the season.
- If quantity then OK....... If quality...... not OK.
Yes: winning MVP; # of Abs
No: bonus team wins division; player hits .300; Player hits 24 HR.
Ex.
- Salary guarantee provision
- Salary payment schedule
- No-trade protection
- Club/player vesting options
- Roster/Performance/Award bonuses.