Jacob Turner’s Post

View profile for Jacob Turner, graphic

I help entrepreneurs and athletes build and protect wealth | Investopedia Top 100 Advisor | My kids don't believe I played MLB baseball

The top-ranked player in the MLB draft signed for $1,620,600 less than his slot value. While it was a good deal for the team, it was also the right move for him. Here is why (and how the MLB draft works): ~ The MLB draft revolves around a team's bonus pool. This is the money that a team has to sign players in the top 10 rounds or pay those in the next 10 more than $150,000. That bonus pool gets broken down by the picks a team has, here is an example... ~ The Cleveland Guardians selected first and had a total bonus pool of $18,334,000. $10,570,600 of was for the #1 pick in the draft. This is where it gets interesting... ~ Step in Travis Bazzana, the presumed #1 pick. Yet not a slam dunk like Bryce Harper or Stephen Strasburg from years past. You see there were other players in the mix for that pick. So here is why the Indians took Bazzana... ~ First, they thought he was the best player for them. Second, they agreed to pay him $1,620,600 less than the $10,570,600 slot. Before you say this is one-sided, let me explain why both Bazanna and the Guardians win here... ~ Bazanna gets a bonus higher than any slot from pick number four down. If he plays hardball perhaps he falls, remember there was a list of players in the mix for those top picks. The Guardians win by allocating an additional $1,600,000+ toward other picks. ~ So remember, the next time you see any contract negotiation there is usually more to the story. When it comes to the MLB draft that is certainly the case. If you enjoyed this share it with your network and follow me for more at the intersection of sports and money. ***If you enjoyed this share it with your network andd follow me for more at the intersection of sports and money.

  • No alternative text description for this image
HENRY WALTHAM

HENRY WALTHAM ON FACEBOOK 781 209 1015

5mo

https://MagPro.org/ButchHobson/ https://vimeo.com/324120523 https://youtube.com/watch?v=UbjcwCVdS28 ... AROUND THE NATION FOR NEW BASEBALL TALENT. LIST OF ALL THE PRO BASEBALL TRYOUTS AROUND THE NATION, LOCATIONS, TIME TO BE THERE AND WHO OR WHAT CLUB IS HOLDING TRYOUTS.. Today at 4:28 AM NEED NEW BASEBALL TALENT 18-25 ONLY FOR A STRONG MEN'S LEAGUE. IN THE BOSTON AREA THEY ARE 60% INTO THE SEASON!!! HENRY 781 891 0621 . WE ALSO DO SAME DAY SERVICE BASEBALL GLOVE REPAIR CAN U LET THE UNIVERSE KNOW POST IT ON THE SCHOOL WEB SITE.

  • No alternative text description for this image
Like
Reply
Andrew Ross

PE-Backed CFO and Entrepreneur

5mo

The bigger problem with the slotting system is how teams give college seniors as little as $5k to sign and then reallocate that money to convince high school kids to skip college. That’s where I feel really icky. Teams should have to pay a floor when they draft a kid.

Dan Rosenblatt🙏🤝

Believer ✝️ Husband 👨💼 Church Elder 🙏 Mentor 🤝 Protector of Small Business 🛡Business, Life, & Disability Insurance | Estate Planning

5mo

And if they properly utilize that $1.6M, he'll be on a better team. And better teams get more exposure which could equal better future playing opportunity and endorsements. No one has a crystal ball and you can't be positive that you'll stay healthy or "pan out" - so I do understand going for more money up front. But if you bet on yourself and invest in staying healthy, this strategy could be extremely solid. Thanks as always for breaking it down Jacob Turner!

Like
Reply
Colin Day, CFP®, EA, MBA

Helping you use your wealth now, not just in retirement.

5mo

It would be interesting to see/hear about how smaller market teams play the draft game when compared to bigger markets. Are teams like the Yankees and Dodgers worried about development as much to play with slot values?

Anthony Vicino

Sharing the systems I used to build a few businesses | ADHD is my superpower | Bestselling Author | Keynote Speaker | Business Coach

5mo

So interesting how much is happening behind the scenes in these stories.

Like
Reply
Sohail Chatur

Customer Acquisition Specialist - $40mm+ Generated

5mo

Great breakdown of the bonus pool system! Also happy to know I'm not the only one who still interchanges "Indians" and "Guardians"...but then again, I'm still calling the Rogers Centre the Skydome 😂

Jason S.

Military Operations & Research Professional; Driven Experienced Program & Operations Manager; Transforms Organizations; TS/SCI

5mo

Best part of the article was the slip from Guardians to Indians.

Good point! Don’t feel sorry for Travis Bazzana he’s set for life . If he invests wisely even if he’s never a professional baseball player. I deal with professional athletes and entertainers. (CPA). If you need tax planning advice please contact me

Harris Fanaroff

Founder @ Linked Revenue | Sharing insights to help Executives and Sales Professionals generate more revenue from LinkedIn

5mo

Was always curious about this

Like
Reply
Ben Chuha

Equipping current and former athletes for the transition beyond competitive sport.

5mo

Seeing the #2 and 3 picks set a new signing record, it makes signing for that much below even more interesting. I have to wonder if the expectation that 2 and 3 would sign high was discussed to help prep him for the possibility and avoid negative feelings to start the relationship.

See more comments

To view or add a comment, sign in

Explore topics