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Amid uncertainty, multiple MLB teams have asked league about canceling Rule 5 draft this season, sources say

  • Jeffery Williams
  • March 6, 2022
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The rule 5 draft is a yearly event in which each MLB team can choose to either keep or select from the list of players made available by other teams. The uncertainty this time stems from the ongoing lawsuit with Major League Baseball Players Association and if it will be approved for next season.

The “when is the mlb draft 2021” is a question that has been asked multiple times in recent days. The uncertainty surrounding the Rule 5 draft this season has led to teams asking questions about canceling it.

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Because teams have clamped down on scouting minor leaguers currently in spring training camps due to uncertainty over the Rule 5 draft, officials from nine teams told ESPN that the fallout from Major League Baseball’s player lockout could have far-reaching implications on the trade and free-agent markets, potentially slowing them down.

According to insiders, many clubs have spoken with the league about the prospect of scrapping the Rule 5 draft this season. Teams may choose players who aren’t on 40-man rosters in the draft and pay $100,000 for their rights, but they must stay on their 26-man big league squad for the full season. According to sources, no decision has been made on the major league portion of the Rule 5 draft this season, but with minor league spring training underway and games starting as early as March 12, the opacity of the situation has left executives wondering how the league plans to handle the complicated situation.

MLB and the MLB Players Association have yet to address the Rule 5 draft during their discussions on a new collective bargaining agreement, according to ESPN sources. Because it is a collective bargaining agreement, the league and the union would have to agree to scratch it for one season. When ESPN contacted MLB and the MLBPA, both refused to comment.

According to reports, 16 companies have submitted letters to all clubs banning scouts from their facilities, fearful of losing players if the Rule 5 draft stays in place. According to insiders, only the Cincinnati Reds, Milwaukee Brewers, Oakland Athletics, Tampa Bay Rays, and Seattle Mariners are allowing scouts from other clubs to view their minor league prospects. The five have made a mutually beneficial pact to scout each other’s prospects. Other companies haven’t established a policy or developed a separation strategy. For example, the St. Louis Cardinals will open to the public and media on Monday, but not to scouts until March 17, when the season begins.

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According to insiders, the ramifications of the scout ban might be far-reaching: Most clubs are also unable to assess players who may be traded after the lockout ends. As the game’s transactional ledger reopens during a new CBA, the trading market is likely to be busy. However, doing so without scouting players would be risky, particularly for clubs aiming to rebuild via trades, according to sources.

In previous seasons, executives have blamed a sluggish trade market for the lack of free agency movement. With the A’s potentially trading star first baseman Matt Olson, third baseman Matt Chapman, and starting pitchers Chris Bassitt, Sean Manaea, and Frankie Montas, the Reds shopping starting pitching before the lockout, and others on the move, a clogged trade market due to teams needing fresh looks on potential acquisitions could have a negative impact on parts of the free-agent market, according to sources.

Five general managers told ESPN this week that canceling the Rule 5 draft would encourage clubs to loosen scouting limits and alleviate the problems posed by the impasse. Any modifications to Rule 5 would need to be approved by the MLB Players Association.

The worry of rival clubs gathering fresh information on prospects who improved over the winter and applying it to the Rule 5 draft sparked the scouting freeze, according to insiders. While Rule 5 picks are typically not impact players (they are chosen from a pool of players who signed at the age of 18 or earlier and spent five years in the organization, or four years if they signed at the age of 19 or higher), the cost-effectiveness of the acquisition makes it particularly important to rebuilding teams.

Detroit outfielder Akil Baddoo, Boston reliever Garrett Whitlock, Colorado reliever Jordan Sheffield, Miami reliever Paul Campbell, Cleveland reliever Trevor Stephan, and Baltimore reliever Tyler Wells were among the 17 major league Rule 5 picks who stayed with their teams for the entire season last season. If a club removes a Rule 5 player from its major league roster during the season, it must return him to the team from whence he was selected for $50,000, but if it keeps him on the roster the whole season, it may send him back to the minors the next year.

According to reports, the lockout altered the traditional math for the Rule 5 draft, which usually takes place in December during the Winter Meetings. Teams must utilize a 40-man roster slot for a Rule 5 selection, which comes with a cost: reduced roster flexibility during the summer in regular years.

Teams want to take advantage of the additional chance to scout players because of the lockout, according to the general managers. While analytics will play a role in player acquisitions in 2022, utilizing scouts to help notice any changes over the winter — like as a player’s physical condition or a surge in fastball velocity — would be a first for a Rule 5 draft.

In theory, skipping it for a year, as suggested by The Athletic, would help the union as well. With hundreds of free agents expected to enter the open market, employment opportunities may be scarce. Teams may utilize the 26-man slots on free agents instead of the Rule 5 draft if they agreed to delete it.

The reward to the athletes who are routinely picked — those who are not among the union’s 1,200 members — is twofold. The potential to make a big league roster is the most important, although those who are returned to their old clubs earn a considerable rise above the usual minor league income, which players who have been on a 40-man roster receive.

Another problem that abolishing Rule 5 for a season might solve is providing clarity on players who will be named later in the season. PTBNLs from last year’s transactions are available to several clubs, and although they must be picked within six months, the lockout bans any moving onto a team’s 40-man roster.

The Arizona Diamondbacks, Texas Rangers, Pittsburgh Pirates, and Washington Nationals are slated to choose first in the Rule 5 draft, followed by the Baltimore Orioles, Arizona Diamondbacks, Texas Rangers, Pittsburgh Pirates, and Washington Nationals. Because the lockout does not preclude players not on clubs’ 40-man rosters from moving, the minor league part of the draft took place in December.

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