So it’s slightly more complicated than the headline would suggest, but the Yankees have $4,192,200 to spend on the first 10 rounds of this year’s amateur draft, according to Jim Callis of Baseball America.
This is brand new in baseball as before the latest collective bargaining agreement teams had unlimited funds for the draft. Now there is a cap for the first 10 rounds with a 75 percent tax on teams that go up to five percent over the cap. Teams that go more than five percent over will lose a draft pick in the next year’s draft.
After the 10th round the cap is at $100K for each round and any money spend over that $100K comes out of the draft pool for the first 10 rounds.
The Yankees spend $4.2025 million on the first 10 rounds last season so this isn’t as big a deal as it first seemed. It could hurt them in later rounds as that’s where they tended to overspend on picks by selecting signability cases. Not only will there not be as much money to spend on these guys, but more importantly they will not be available like they have in the past as this will be a more true draft where players are taken in order of talent and there will be fewer signablity cases.
The Twins have the most money to spend at about $12.4 million and the Angels have the least to spend at about $1.6 million.