The MLB collective bargaining agreement contains a provision that allows certain free agents who are signed to minor league contracts to receive a $100K retention bonus if they do not receive a binding promise to be added to the team’s 25-man roster (or the Major League disabled list) five days prior to the season. If the team decides to pay the retention bonus, the player also receives a June 1st opt-out clause. Contracts can permissibly include terms that are more favorable to the player, such as greater retention bonuses and/or earlier opt-out clauses.
Decisions must be made by noon EST on the fifth day prior to Opening Day. If a team does not release an Article XX(B) free agent prior to that point in time, then they must either put the player on the active roster (or DL) to start the year, or be on the hook for the benefits noted above. Last year, numerous XX(B) free agents were either added to the roster or paid the bonus by teams hoping to maintain control over the player.
There are many different ways to become a free agent, but only those players who reach free agency through Article XX(B) and certain international free agents are eligible for this added protection. There are two types of players who can qualify in this manner at the end of a season. (In either case, of course, the player must not already be a free agent; i.e., he must be on a club’s 40-man roster upon the conclusion of the World Series. Thus, John Axford — already added to the 40-man by the Rockies — did not qualify after his late-season outright.) First are those players who have accrued at least six years of Major League service time and are not under contract for the following season. Second are those players with expiring contracts who signed with an MLB club after turning 23 and after playing five seasons in one of the major international leagues. (In the below list, Kawasaki is an example.) In either case, the XX(B) free agenty must sign his minor league deal ten or more days prior to Opening Day to qualify for the added contractual protections.
Here is a list of this year’s crop of Article XX(B) free agents who have signed minor league deals and thus come within the ambit of the rule, as of today. (Several other players likely to land minor league deals could also qualify — including names like Scott Hairston and Ryan Doumit — if they sign in time.)
Angels: Matt Lindstrom
Astros: Roberto Hernandez, Joe Thatcher
Blue Jays: Munenori Kawasaki, Johan Santana, Ramon Santiago
Braves: Kelly Johnson, Jose Veras
Brewers: Chris Perez
Cardinals: Carlos Villanueva
Cubs: Phil Coke
Diamondbacks: Gerald Laird
Dodgers: Mike Adams
Indians: Scott Downs
Mariners: Endy Chavez, Kevin Correia, Franklin Gutierrez, Joe Saunders
Marlins: Reed Johnson, Nick Masset
Nationals: Rich Hill
Padres: Wil Nieves
Rangers: Joe Beimel, Ryan Ludwick, Nate Schierholtz, Jamey Wright
Rays: Alexi Casilla
Red Sox: Felipe Paulino, Humberto Quintero
Reds: Kevin Gregg, Paul Maholm
Royals: Franklin Morales
Tigers: Joel Hanrahan
White Sox: Matt Albers, Jesse Crain, Brad Penny, Geovany Soto
Yankees: Scott Baker, Jared Burton