Under the new collective bargaining agreement, teams cannot just spend however much they want on international signings. Just like with the draft, a budget pool is released for each team instead, with penalties for clubs going over their limits. The spending limits are determined by record, with the worst teams getting the highest allotment. Since the Red Sox were terrible in 2012, they not only get to pick seventh in the 2013 amateur entry draft, but are also allowed to spend the seventh-most on international signings.
The Red Sox have $3,179,900 to spend, $191,800 more than the team directly behind them, the Royals, and $215,300 less than the Marlins, who are directly in front of them. All told, the Red Sox own 4.1 percent of the total money in the budget pool, just slightly more than you would get were the allotments distributed evenly among all 30 clubs.
Baseball America's Ben Badler reports that the penalties for exceeding these thresholds depend on whether or not there is an international draft, rather than signing period, in the summer of 2014. We won't know if there is or is not a draft until June -- MLB has to inform the MLBPA of their intent on that note by June 1, and the MLBPA can veto the move for 2014 by June 15 of this year if that's the case.
Badler has the full details over at Baseball America, but you can find said penalties for each scenario below:
Penalties With 2014 International Draft
- 0-5 percent over pool: 75 percent tax on the pool overage.
- 5-10 percent over pool: 75 percent tax on the pool overage. Team loses first-round pick in the 2014 international draft.
- 10-15 percent over pool: 100 percent tax on the pool overage. Team loses first-round and second-round pick in the 2014 international draft.
- 15 percent or more over pool: 100 percent tax on the pool overage. Team loses first-round and second-round picks in both the 2014 and 2015 international drafts.
Penalties With No International Draft
- 0-5 percent over pool: 75 percent tax on the pool overage.
- 5-10 percent over pool: 75 percent tax on the pool overage. Team won't be allowed to sign a player for more than $500,000 during the 2014-15 signing period.
- 10-15 percent over pool: 100 percent tax on the pool overage. Team won't be allowed to sign a player for more than $500,000 during the 2014-15 signing period.
- 15 percent or more over pool: 100 percent tax on the pool overage. Team won't be allowed to sign a player for more than $250,000 during the 2014-15 signing period.