The MLB Draft occurred just last week, but already, three first-round picks have signed with the teams who picked them.  The disadvantage of signing early is that you forfeit seeing what other players are signing for.  There is a possibility that you sign for less than you could make if you hold out until the deadline.  The positive is that you show goodwill to your signing team and get started within the organization as soon as possible.  Many teams will start you on a higher level, and you will be well on your way up the system while your colleagues are holding out for more money.

Normally, the signing deadline for drafted players is August 15th.  Because August 15th falls on a Saturday this year, the MLB has pushed the deadline  back to August 17th.  Expect a lot of first rounders to sign within minutes of the deadline.  But then there are those who have already signed, two months earlier than they had to.  Tony Sanchez is currently playing with the West Virginia Power of the Pittsburgh Pirates organization (where Dynasty has 2 clients: Kyle McPherson and Ryan Kelly), Drew Storen is with the Hagerstown Suns of the Washington Nationals organization, and Eric Arnett will be sent to Brewers Rookie Ball (Helena).

To be able to start playing in Class A or Rookie Ball now, is definitely a plus.  What about the signing bonuses?

• Tony Sanchez (#4 overall) – $2.5 million. College Junior – Catcher.
• Drew Storen (#10 overall) – $1.6 million. Draft-eligible College Sophomore – RHP.
• Eric Arnett (#26 overall) – $1.2 million. College Junior – RHP.

Last year, the #4 overall pick (Brian Matusz, College Junior – LHP) signed for $3.2 million, higher than Tony Sanchez’s bonus.  Left-handed pitchers are very valuable, but so is the skilled position of Catcher.  Additionally, the #5 overall pick was a College Junior Catcher named Buster Posey.  Drafted one slot later than Sanchez, Posey received the largest bonus of the draft – $6.2 million.  The Pirates spent $6 million on their 1st round pick last year (Pedro Alvarez), so Sanchez really could have probably made more if he held out a little longer.  But again, the positives of signing early..

Last year’s #10 overall pick (Jason Castro) was a College Junior Catcher from the same university as this year’s #10 overall pick – Stanford University.  Castro also signed for more money than this year’s #10 pick.  He received a bonus of $2.07 million.  Again, a highly skilled Catcher is very valuable, but Storen was seen as someone who could help out the Nats immediately.  Storen was also probably drafted in this position because of his signability.  Presumably, the Nationals knew that he would be a quick sign, which is why he was taken at #10 overall.

The #26 overall pick last year was Daniel Schlereth, a College Junior LHP from the University of Arizona.  As previously stated, LHPs are often valued higher than RHPs.  Schlereth received only a little more of a bonus ($1.33 million) than Arnett.

All three first round players that signed, did so below slot value.  I believe that Storen and Sanchez have legitimate reasons for doing so.  But maybe Arnett should have taken a little bit more time before agreeing to the terms of his deal.  What are your thoughts?

Early First Round Signings Below Slot from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

Number-one overall pick, Tim Beckham, received a $6.15 million signing bonus.  Word is that Beckham’s bonus will be trumped by Buster Posey, who may get a whopping $7.5 million.  Posey was the fifth player taken in the draft (by the San Francisco Giants).  The aforementioned Pedro Alvarez (Boras), Eric Hosmer (Boras), and Brian Matusz were all taken earlier than Posey and remain unsigned at the moment.  After Posey, there are six players who will probably not be signed until the final minutes before the deadline (if signed at all).  They are Yonder Alonso, Aaron Crow, Justin Smoak, Josh Fields (Boras), Allan Dykstra (Boras), and Gerrit Cole (Boras).  I do not know what is more remarkable: the fact that Boras has five players in the first round or that five of the ten players still holding out in the first-round are Boras clients.

Out of all of the first-round players yet to sign, only one seems to be for a reason other than the belief that he feels he deserves higher than slot figures.  Allan Dykstra has medical issues, which has delayed progress between the Padres and Boras Corp in signing the former Wake Forest first baseman.

As of writing this post, here are the bonus babies (highest signing bonuses) in the first ten rounds:

• 1st round (pick 1) – Tim Beckham – $6.15 million (Rays)
• Supplemental 1st (pick 1) – Shooter Hunt – $1.08 million (Twins)
• 2nd round (pick 9) – Destin Hood – $1.1 million (Nationals)
• 3rd round TIE (pick 5) – Roger Kieschnick – $525k (Giants) and (pick 10) – Danny Espinosa (Nationals)
• Supplemental 3rd (pick 1) – Ross Seaton – $700k (Astros)
• 4th round TIE (pick 1) – Ty Morrison – $500k (Rays) and (pick 19) – Matt Cerda (Cubs)
• 5th round (pick 9) – Adrian Nieto – $376k (Nationals)
• 6th round (pick 28) – Brett Marshall – $800k (Yankees)
• 7th round (pick 29) – Tim Fedroff – $725k (Indians)
• 8th round (pick 4) – Bobby Bundy – $600k (Orioles)
• 9th round (pick 15) – Steven Caseres – $250k (Dodgers)
• 10th round (pick 12) – Rashun Dixon – $600k (Athletics)

For a team with a small payroll, the Nationals seem to be spending quite a bit of money on their early draft picks.  Other notes:

• Out of 16 Supplemental 1st round picks, only one remains unsigned: Jeremy Bleich (Yankees)
• Only one player in the entire 3rd round has yet to sign: Chase Davidson (Astros)
• Every single player selected in the 8th round has signed a deal with the club that drafted him.
• The 10th round sticks out, containing ten players that have not yet signed.

For a great breakdown of the reasoning behind why certain players remain unsigned, check out this article published by BaseballAmerica.  Friday shall be an interesting day, indeed.

Friday’s MLB Draft Deadline from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules