MLB, Japanese, union reach posting deal

MLB, Japanese, union reach posting deal

The 23-year-old Nippon Ham Fighters dubbed the "Babe Ruth of Japan" is regarded as one of the hottest properties in baseball, a two-way threat with a fastball clocked at 100mph and an explosive presence at the plate. Under the new Major League Baseball collective bargaining agreement, a 23-year foreign pro like Ohtani is treated the same as a 16-year-old amateur from the Dominican Republic or Venezuela. Those numbers range from $10,000 to $3.5 million.

Ohtani would have likely signed a deal in excess of nine figures had he waited until his 25th birthday.

Because the 23-year-old is under 25, he falls within worldwide pool rules, which means he can only collect a bonus for what teams have left in their allocations, which range from $10,000 to just above $3.5 million. The old posting system between Major League Baseball and NPB expired October 31.

However, the Players Association had veto power and would not approve the deal for a variety of reasons.

The big news here is Ohtani is coming to the majors, though. A deadline of 8 p.m. was set for Monday to finalize this and was pushed back to Tuesday and a deal was done with a few hours to spare.

While Ohtani's current team will receive a $20 million posting fee, but future teams will receive posting fees for players on a sliding scale as follows: 20 percent for contracts under $25 million, 17.5 percent on contracts from $25 million to $50 million and 15 percent for bonuses above $50 million. If a player is added to the 40-man roster within two seasons, the fee would double by an additional 20 percent. Ohtani has such a high ceiling as a pitcher and a hitter and will sign a minor league contract and play for near the minimum in 2018 that every club will want a chance to sell to him. Joel Sherman of the NY Post reported that Major League Baseball owners must ratify the agreement next Friday and Ohtani would then be posted that day or the following day.

Jon Paul Morosi is a reporter for and MLB Network.

Monday afternoon was a busy one in baseball, despite the fact that no actual baseball was played (unless you count the global winter leagues).

As for Ohtani, who none of this applies to personally, the bidding will begin for him around next Friday and teams will have 21 days to sign the Japanese star.