What is options trading baseball

Major League Baseball transactions are changes made to the roster of a major league team during or after the season. They may include waiving, releasing, and trading players, as well as assigning players to minor league teams. Each Major League Baseball team maintains both a man roster and a man roster of players. Players on the man roster are eligible to play in official major league games throughout the season.

The man roster includes the players on the man roster plus as many as 15 players who are either on the team's seven- or day disabled list , who are on paternity leave for up to three days, or who are in the franchise's farm teams in Minor League Baseball.

From September 1 through the end of the regular season , any player on the man roster also referred to as the "expanded roster" is eligible to play in an official regular season game. Many young players make their Major League debuts in this way, as "September call-ups.

To be eligible for a team's postseason roster, a player must be on any of the following: Teams may trade only players currently under contract. From the end of the previous World Series through July, trades between two or more major league teams may freely occur at any time. In August, trades may only be made after all players in the trade clear waivers or are not on man rosters.

Players acquired after August 31 are ineligible for the postseason roster unless they replace an injured player. Unlike in the NFL , NHL , MLS , and the NBA , teams may not trade draft choices with the exception of competitive balance draft selections, which can be traded , but may purchase the rights to Rule 5 Draft Picks.

Beginning with the season, MLB allows one specific class of draft picks to be traded. As part of a newly signed collective bargaining agreement between MLB and its players' union, each team is allocated a "bonus pool"—a set amount of money it can use to sign its draft picks for that year.

Teams that go over their threshold can be penalized by losing one or more future draft picks. Those forfeited draft picks will eventually end up in the possession of small-revenue teams, which can then trade them if they wish. The first picks awarded under this scheme were for the draft. The August 31 rule was waived in for servicemen returning from World War II.

Over the years, there have been several notable cases where a player acquired after the August 31 deadline made a significant contribution to a playoff-contending team but was ineligible for the postseason; for example, Pedro Ramos with the New York Yankees and Sparky Lyle with the Philadelphia Phillies. Additionally, some players negotiate to have no-trade clauses in their contracts that have the same effect.

In some trades, one of the components is a " player to be named later " which usually turns out to be a minor league player. The unnamed player is included as part of a trade when the teams cannot immediately agree on a specific player or when the player is not yet eligible to be traded.

In these cases, the player in question must be named within six months. Cash or some other consideration may be exchanged in lieu of the player to be named later.

For example, during the Major League Baseball strike , the Minnesota Twins traded Dave Winfield to the Cleveland Indians at the trade deadline. Any player under contract may be placed on waivers "waived" at any time.

Major League Baseball transactions - Wikipedia

After MLB's August 1 at 4 pm trade deadline and through to the end of the season, a team must place a player on waivers if that player is to be traded. If a player is waived, any team may claim him. If more than one team claims the player from waivers, the team with the weakest record in the player's league gets preference. If no team in the player's league claims him, the claiming team with the weakest record in the other league gets preference. In the first month of the season, preference is determined using the previous year's standings.

If a team claims a player off waivers and has a viable claim as described above, his current team the "waiving team" may choose one of the following options:. If a player is claimed and the waiving team exercises its rescission option, the waiving team may not use the option again for that player in that season—a subsequent waiver would be irrevocable with a claiming team getting the player essentially for nothing.

The waiver "wire" is a secret within the personnel of the Major League Baseball clubs; no official announcement of a waiver is made until a transaction actually occurs, although information sometimes leaks out.

The National League NL was the first of the two major leagues to adopt the trade deadline rule in Originally it was enforced after June 15, but was later changed as the result of a new collective bargaining agreement. Then an inter-league trading period was established, centered on the winter baseball meetings in December.

Later, there were two "inter-league" trading periods each year, one from after the World Series until mid-December and the second from a week before spring training began until March So intent were leagues on keeping their stars from being moved from one league to the other, that then—National League President Warren Giles threatened to keep NL clubs from trading major stars to the American League after the deal that sent Frank Robinson from Cincinnati to Baltimore.

Options are directed by MLB Rule 11 C. On the contrary, a player has a finite number of option years in which he may be moved between the major and minor leagues an unlimited number of times.

If a player is on the man roster but not on the active major league roster, he is said to be on optional assignment—his organization may freely move him between the major league club and the minor league club. The rules for this are as follows. In all cases, an assignment of a player on a major-league disabled list to the minors while on a rehabilitation assignment does not count as time spent in the minors.

Once all of the options have been used up on a player, a player is considered "out of options" and a player must be placed on and clear waivers prior to being sent down to the minor leagues there is also the "veterans' consent" rule.

The option system was designed to prevent players from being buried in the minor leagues forever, by forcing teams to make a decision within a limited number of years on whether or not they can use a player in the Major Leagues. Options do not "reset" if a player is traded - he still has only the original three option years that began when he was first placed on a team's man roster.

A player who is designated for assignment DFA is immediately removed from the man roster. This gives the team time to decide what to do with the player while freeing up a roster spot for another transaction, if needed.

Once a player is designated for assignment, the team has ten days to do one of the following: A player who is outrighted to the minors is removed from the man roster but is still paid according to the terms of his guaranteed contract.

A player can only be outrighted once in his career without his consent. If a player has 5 years of major-league service, he may not be assigned to a minor-league team without his consent. This exclusion applies regardless of whether he has not yet been outrighted once, has remaining options, or has cleared waivers.

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If the player withholds consent, the team must either release him or keep him on the major league roster. In either case, the player must continue to be paid under the terms of his contract. If he is released and signs with a new team, his previous team must pay the difference in salary between the two contracts if the previous contract called for a greater salary. If a major league player cannot play because of a medical condition, he may be placed on the day disabled list DL 15 days prior to the season [12].

This removes the player from the man roster, freeing up a space, but the player is ineligible to play for at least 10 consecutive days.

Players on the day disabled list are still a part of the man roster. An injured player may also be placed on the day disabled list to remove the player from the man roster as well, with the condition of being ineligible to play for at least 60 consecutive days. Players placed on the day disabled list may be moved to the day list at any time, but not vice versa. Players may be placed on either disabled list retroactively for a maximum of 5 inactive days and may remain on either list for as long as required to recover.

During this 5-day period, a player's status is said to be day-to-day, indicating that the team is in the process of deciding whether the player must be placed on either DL or is healthy enough to return to active service. Injured players may not be traded without permission of the Commissioner nor may they be optioned to the minors, though they may be assigned to a minor league club for rehabilitation for a limited amount of time 30 days for pitchers, 20 for non-pitchers.

In , a 7-day disabled list was added specifically for players who have suffered a concussion. This was instituted to allow players who may recover from their concussions quickly to be removed from the active roster and replaced for a shorter period of time than the standard DL term. A player who is still suffering from concussion symptoms at the 7-day mark is automatically transferred to the day DL. Both the brain injury and the player's recovery need to be verified by team and league doctors; the list is not intended for non-concussion injuries.

The bereavement list may be used when a player finds it necessary to leave the team to attend to a serious illness or death in his or his spouse's immediate family.

A player placed on the bereavement list must miss a minimum of three games and a maximum of seven games. The team can use another player from its man roster to replace a player on the bereavement list. The paternity leave list may be used when a player finds it necessary to leave the team to attend the birth of his child. A player placed on the paternity leave list must miss the next team game, but no more than three games.

The team can use another player from its man roster to replace a player on the paternity leave list. This list was adopted beginning with the season. If a player not on a man roster has spent four years with a minor-league contract, originally signed when 19 or older or five years when signed before the age of 19, he is eligible to be chosen by any team in the rule 5 draft during the offseason. No team is required to choose a player in the draft, but many do.

If chosen, the player must be kept on the selecting team's man major league roster for the entire season after the draft—he may not be optioned or designated to the minors. The selecting team may, at any time, waive the rule 5 draftee, such as when they no longer wish to keep him on their major league roster. If a rule 5 draftee clears waivers, he must be offered back to the original team, effectively canceling the rule 5 draft choice.

Once a rule 5 draftee spends an entire season on his new team's man roster, his status reverts to normal and he may be optioned or designated for assignment. To prevent the abuse of the rule 5 draft, the rule also states that the draftee must be active for at least 90 days. This keeps teams from drafting players, then "hiding" them on the disabled list for the majority of the season.

For example, if a rule 5 draftee was only active for 67 days in his first season with his new club, he must be active for an additional 23 days in his second season to satisfy the rule 5 requirements.

Any player chosen in the rule 5 draft may be traded to any team while under the rule 5 restrictions, but the restrictions transfer to the new team.

If the new team does not want to keep the player on their man roster for the season, he must be offered back to the team he was on when he was chosen in the draft. The intent of the rule 5 draft is to prevent teams from holding major league-potential players in the minor leagues when other teams would be willing to have them play in the majors.

However, this draft has also become an opportunity for a team to take a top prospect from another team who might not be ready for the major leagues. For example, Cy Young award winner Johan Santana was chosen by the Florida Marlins four years before winning the award, when the Houston Astros declined to put him on their man roster.

The Marlins chose Santana in the rule 5 draft, and traded him to the Minnesota Twins who kept him on their roster for the season, in which he toiled to a 6. Two years later, he legitimized himself as a Major League pitcher, with an ERA under 3. Had he not been chosen in the rule 5 draft, he likely would not have made his major-league debut until the or the season with the Astros. Roberto Clemente is the only Rule 5 draft pick to be inducted into Cooperstown, having been selected by the Pittsburgh Pirates from the then Brooklyn Dodgers in A free agent is a player whose contract with a team has expired and who is thus eligible to sign with another team.

If a player is drafted and is offered a contract by his drafting team or any team to which he is traded each year, he may not become a free agent until:.

Two examples of players falling under 2 above are Hideki Okajima and Hiroki Kuroda. Players with more than six years of service time and who are eligible for free agency can also be offered arbitration when their contracts are up, if they have been tendered a contract offer by their current team by the tender deadline, and have not agreed on a contract.

The arbitrator chooses one number or the other, based on which offer is closest to the salaries of players with similar ability and service time.

For purposes of salary arbitration and free agency, a player acquires a year of service time if the player remains on the major league roster for at least days of the day season. Players eligible for neither free agency nor salary arbitration are very seldom offered contracts for much more than the league minimum salary, as the player has no recourse to try to obtain a better salary elsewhere.

For this reason, in the first three major league years of their careers except for the "Super Two" exception above , it is standard practice for players to accept comparatively low salaries even when their performance is stellar. Occasionally, a team may wish to sign a player in his second or third year to a long-term contract, and the resulting negotiations can involve salaries significantly higher than minimum.

A recent example is the contract Ryan Braun signed barely a year into his major league career, which would have taken him through A team does not have to offer a contract to a player not eligible for free agency if his contract has expired, regardless of service time. If the player is not tendered a contract offer by the tender deadline usually in the second week of December , the player becomes a non-tender free agent. From Wikipedia, the free encyclopedia.

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