New posting system between MLB, NPB to take effect next offseason
While the old posting system has been grandfathered in for the purposes of the Shohei Ohtani signing this offseason, a new one will take effect next year which guarantees the players will see a larger share of the money.
Beginning November 2018 and lasting until November 2021, Nippon Professional Baseball teams will start getting a percentage of the contract that is agreed upon between their player and the Major League Baseball team.
From MLB's official release:
- For Major League contracts with a total guaranteed value of $25 million or less, the release fee will be 20% of the total guaranteed value of the contract;
- For Major League contracts with a total guaranteed value between $25,000,001 and $50 million, the release fee will be: (i) 20% of the first $25 million of total guaranteed value (i.e., $5 million) plus (ii) 17.5% of the total guaranteed value exceeding $25 million;
- For Major League contracts with a total guaranteed value of $50,000,001 or more, the release fee will be: (i) 20% of the first $25 million of total guaranteed value (i.e., $5 million) plus (ii) 17.5% of the total guaranteed value between $25,000,001 and $50 million (i.e., $4,375,000) plus (iii) 15% of the total guaranteed value exceeding $50 million;
Further, bonuses, salary escalators, and options are treated with a flat 15 percent release fee to be paid when earned or exercised, while minor-league deals will be worth a flat 25 percent fee of the signing bonus.
Ohtani and fellow Japanese pitcher Kazuhisa Makita will be posted under a version of the old system, which stipulates the departing player must sign a minor-league contract with a bonus taken from a team's limited international bonus pool, while a $20-million maximum bid for their services goes to their NPB teams.
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