Rule 5 Ruminations

Jason Michael Barker

Of all the complicated workings of Major League Baseball, perhaps the most mysterious to fans is the Rule 5 draft, which will take place at the upcoming Winter Meetings. The draft gained some notoriety last winter when college football star (and future NFL running back) Ricky Williams wound up with the Texas Rangers, but other than that, most fans have only a vague idea of how the Rule 5 draft works.

For starters, it's called the Rule 5 draft because it just happens to be Rule 5 in The Official Professional Baseball Rules Book. The book also covers topics such as transactions (waivers, options, and so on) and the June amateur draft, and for some reason is not available to the public. This is different from the Official Rules of Baseball, covering the way the game is played on the field, which should be available for purchase at your local book-selling giant.

On or before November 20 of this year, each team was required to submit a 40-man roster to MLB in preparation for the draft. A team's 40-man roster generally consists of its major league players, plus some upper-level minor leaguers. The players on a 40-man roster are "protected," and are not eligible to be selected in the Rule 5 draft.

A player not on the 40-man roster is eligible to be selected, provided he signed his first pro contract at age 18 or younger and this is at least the fourth Rule 5 draft since he signed, or if he signed his first pro contract at age 19 or older and this is at least the third Rule 5 draft since he signed.

In general, very young players don't need to be protected, so you shouldn't panic if your team left a top prospect off its 40-man roster -- in all likelihood, he hasn't been around long enough to be eligible anyway.

Speaking of which, if you're interested in seeing which players are on each team's 40-man roster, the folks over at Baseball America (a great place for minor league information and statistics in general) have compiled the rosters for your perusal. Head on over to http://www.baseballamerica.com/news/40mans.html if you're interested.

So far, so good, right? Here's the catch. In order to prevent teams from drafting players like crazy, there are some significant restrictions placed upon Rule 5 draft choices, including a $50K cost to select a player.

The biggest restriction is that players chosen must be placed on the drafting team's 25-man major league roster and kept there for the entire season. That's the roster that sits on the bench and plays the games, mind you. In other words, it's all well and good to choose a 21-year-old A-ball pitcher in the Rule 5 draft, but it's another thing to have to carry him on your major league roster all season. It means you aren't able to carry another player who might be of more value, and it also means that the young pitcher isn't in a very good situation (tough hitters, erratic use) to develop.

If a team decides they can't afford to carry a Rule 5 draftee on their 25-man roster any more, he must be offered back to his original team for half the cost ($25K) of his selection.

Before he can be offered back, however, he must be placed on waivers. At this point a third team could claim him, but of course they too would have to keep him on their 25-man roster all season, or offer him back to his original club.

Because so few players are ready to make that big leap to the majors, there are usually only around 10 or 15 players picked in the Rule 5 draft, and even fewer still last all season on the 25-man roster. Some do make it, however, and last season's Rule 5 survivors include Pittsburgh LHP Scott Sauerbeck, Toronto C Alberto Castillo and Houston OF Glen Barker.

In order to better illustrate the entire process, let's follow the hypothetical situation of Harry Smith, a farmhand in the Houston Astros organization. Harry, a speedy outfielder, signed his first pro contract right out of high school, at the age of 17. This is the fourth Rule 5 draft since he signed, and the Astros decided not to place him on their 40-man roster, meaning he's eligible to be drafted.

At the winter meetings Harry is chosen by the New York Mets. He's placed on the 25-man roster, and is with the big club as the season opens. However, after several months it's clear that Harry is not going to get a shot with the Mets, who are satisfied with their outfield corps. He's placed on waivers and picked up by the White Sox, who feel he has value as a pinch-runner and defensive replacement.

Harry manages to stick with the White Sox for the rest of the season, at which point he becomes the sole property of the club. Now that he's survived his post-Rule 5 draft season, he can be sent down the minors for further development next season. Presto -- the White Sox have pilfered a young player from another organization.

Had Harry cleared waivers (meaning no teams claimed him) after being released by the Mets, the Astros could have had him back for $25K. They also wouldn't be restricted by the 25-man roster requirement, and could choose to send him back to the minors for more seasoning.

So there you have it. Now that you're confident in your understanding of the Rule 5 draft, it's important to keep in mind that that the draft doesn't normally produce much big-time talent, with the notable exception of Roberto Clemente back in 1954, and it isn't likely to have much effect on your favorite team next season.

That's OK, though -- I've always believed that the number one reason why you should understand the Rule 5 draft is so you can wow your friends at parties.

Oh, really? You don't say.

Must be a different sort of party...

about the author

Yep, you guessed it -- Harry Smith is really Jason Michael Barker, and no, he wasn't placed on the Astros 40-man roster. Offer to share his pain if he's picked by the Marlins in the Rule 5 draft at jmb@strikethree.com.