Questions about Japan's "posting" process of its contracted players

[Mattingly]

Since this has been newly-enlivened with pitcher Daisuke Matsuzaka being about a year away from free agency, I had a few questions:

What if, after the fee is paid to the team, he decides he hasn't received a sufficient offer, signing bonus, etc. Is there a condition that the player must return the posting fee? Or is the posting fee non-refundable?

Another strange thought I had is, what if the player decides he doesn't wish to go to the MLB, but wishes to play out his last season in Japan. As unlikely as that is (a hypothetical situation I've made up), what would happen to the posting fee? Returned, I presume?

Thanks. :)

[jalbright]

The bidding process lasts for 30 or 40 days (can't remember which). Then the winning team gets 30 or 40 days (one period is 30 and the other is 40, but I can't remember off the top of my head which is which) to negotiate a major league deal with the posted player. If no agreement is reached, the money paid by the winning bidder is refunded. So it makes no sense to post a player who isn't willing to at least consider going--much less to bid for such a player.

Jim Albright

[Mattingly]

Thanks. One of those "just had to ask" questions I get every now and then.

I think it's 30 days. Still, between the bid and the agent, it'll be over $100m committed in a likely 5-year deal. I hope that he does well.

[Dravecky43]

I saw in the paper that Matsuzaka was released by his Japanese team. Does that mean he is free to negotiate with any team and the fee to his team doesn't have to be paid, or is "releasing" just what they do to allow him to sign?

[jalbright]

My instinct tells me the paper got the terminology wrong. Japanese teams have released guys, making them free agents and thus allowing them to sign with MLB clubs. However, none of them would have commanded any significant posting fee. Matsuzaka seems certain to command well into eight figures in dollars, and his club has financial woes. I seriously doubt they'd let him become a free agent like that--they'd make more keeping him and pitching him next year.

Jim Albright

[Mattingly]

Jim, what are the financial woes of the Seibu Lions?

As to the team's releasing him, this would seem like his stock is at a very high value. I remember the Blue Jays had requested Carlos Delgado to bypass his no-trade, as they were struggling and could've gotten lots of value for him. However, he'd kept them to their word. If a team struggles in the standings, I'd say that their big superstar isn't doing them much help, can bring lots back in a trade. Makes me wonder about why Soriano wasn't traded by the Nats last July 31st.

Anyway, here's an article on the whole thing:


Jed Jacobsohn/Getty Images
After leading Japan to the WBC title in
March, Daisuke Matsuzaka was named
MVP of the tournament.

Blind bidding process first step to signing Matsuzaka (http://sports.espn.go.com/mlb/columns/story?id=2643750)

Officially, baseball's free-agent auction doesn't start for another couple of weeks when players become eligible to sign with teams other than their own.

But the bidding is beginning sooner for at least one particular free agent. As of Thursday, teams could start flexing their financial muscle in pursuit of Japanese pitcher Daisuke Matsuzaka.

In a winter in which pitching is likely to be in even shorter supply than usual -- the conventional free-agent class features Barry Zito and Jason Schmidt, but few other quality starters -- Matsuzaka is generating a groundswell of interest from halfway around the globe.

Ineligible for total free agency until the end of April 2008, the 26-year-old right-hander was made available -- or "posted" -- by the Seibu Lions, who began the process at their discretion on Thursday.

By 5 p.m. ET on Wednesday, Nov. 8, interested teams must submit blind bids to the commissioner's office, which will forward the winning bid to the Lions, who then have until Nov. 14 to accept it. The highest-bidding team will then have 30 days to reach an agreement with Matsuzaka and his agent, Scott Boras.

The Lions will only receive payment if Matsuzaka is signed to a major-league contract. If not, Matsuzaka will return to Seibu for at least one more season. But he would need to be posted again next year since he's not officially a free agent until 20 days into the 2008 season.

It's expected that as many as 10 teams may make bids on Matsuzaka. The New York Yankees, New York Mets, Boston Red Sox, Chicago Cubs, Los Angeles Dodgers, Baltimore Orioles are considered certain bidders, and no would be surprised if the San Diego Padres got into the running. The Seattle Mariners said Wednesday they would not bid on Matsuzaka.

[jalbright]

Here's a link to a May 2005 Business Weekly article: Seibu's Finances (http://www.businessweek.com/magazine/content/05_21/b3934157_mz035.htm) The company lost nearly $3 billion in 2004, has over $13 billion in debt, and its CEO, guiding force through the years and a chief stockholder Yoshiaki Tsutsumi has been indicted on insider trading charges. They have some key assets they can sell, but it's not a pretty picture. Kicking away a likely $20-30 million by releasing Matsuzaka makes little sense if the company's profitable, but when the creditors are pounding on the door, it's insane.

Jim Albright