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MLB draft spending remains below 2011 record

By WTOP Staff

RONALD BLUM
AP Sports Writer

NEW YORK (AP) — Major league teams increased their spending on amateur draft picks 1.5 percent this year from a similar point last summer, yet the total dollars remained below the record set in 2011 before restraints were put in place

Fifteen teams went over their bonus pool allotments, up from 11 last year and 10 in 2011, and will pay $2.68 million in tax. But for the third straight year, none exceeded their pools by more than 5 percent — the level where a club would forfeit its first-round selection next year.

Teams committed $223.2 million in signing bonuses through the July 18 deadline, which applied picks who had not exhausted college baseball eligibility, up from $219.9 million at the deadline last year and $207.8 million at a similar point in 2012. The record of $233.6 million spent on amateur draft picks was set three years ago.

“I did not anticipate it going down. I thought that it would still follow the trends, said Toronto pitcher R.A. Dickey, who has participated in past labor negotiations. “I’m not saying that it’s unhealthy or it’s healthy. I don’t think that I envisioned it doing what it’s done.”

This year’s total would have been higher if the Houston Astros had signed No. 1 selection Brady Aiken, a San Diego high school left-hander. While the Astros first offered a $6.5 million signing bonus, they lowered their proposal after he had a medical exam and they expressed concern about a ligament in his left elbow. The Astros also didn’t sign fifth-round pick Jacob Nix, another high school pitcher, and the players’ association believes the two deals were tied to each other by the team and is considering its options.

In addition, teams spent $94.8 million on 822 international free agents in the 12 months ending July 1, up from $78.7 million for 748 players in the previous year and down slightly from $95.6 million for 2011-12. The amount tends to fluctuate depending on what top-level Cuban players agree to deals.

Major League Baseball has been pleased with the impact of the restraints and says it hopes to obtain agreement with the players’ association for an international draft in the next collective bargaining agreement, which will replace the deal expiring after the 2016 season.

“We understand that when there are negotiated changes to the structure within any segment of the player membership (draftees, players in the early part of their careers, those in the middle and those who have earned their free agency rights), there are indeed expectations as to what affect those adjustments may have in the short term and the longer term,” new union head Tony Clark said in an email. “Please know that we will continue to monitor all facets of the CBA over the next couple years in preparation for bargaining.”

Baseball’s labor contract assigns a slot value to all picks in the first 10 rounds, with the amount starting at $7,922,100 this year for the first pick and decreasing to $137,600 for the final selections of the 10th round.

The highest bonus, $6,582,000, went to North Carolina State left-hander Carlos Rodon, selected by the Chicago White Sox with the No. 3 pick.

“It’s not that you don’t care about the draft, it’s just for me personally, it’s not as high on the totem pole as some of the other player issues,” Dickey said. “When guys are being offered $6 million in the first round, you still think to yourself, well, that’s a substantial amount of money.”

If a team fails to sign a player, the amount of that slot is deducted from its pool. Just five players in the first 10 rounds facing the deadline failed to sign.

For the 11th through 40th rounds, the amounts of bonuses exceeding $100,000 per pick are added to a team’s total for calculating the tax.

A club exceeding its pool total faces escalating penalties, starting with a 75 percent tax on the overage, graduating to a 100 percent tax and the loss of its next two first-round picks.

Exceeding their thresholds were the Chicago White Sox ($356,175 tax), Chicago Cubs ($308,850), Pittsburgh ($261,525), St. Louis ($239,250), Seattle ($237,825), Tampa Bay ($217,439), San Francisco ($216,450), Texas ($169,875), Boston ($139,500), Washington ($155,325), the Los Angeles Dodgers ($150,675), Cleveland ($90,900), the New York Yankees ($65,925), Baltimore ($51,525) and Houston (15,675).

While many players reached agreement on the deadline day before the rules changes in 2012, the only first-round pick to reach an agreement Friday was Hartford left-hander Sean Newcomb, who got a $2,518,400 bonus from the Los Angeles Angels.

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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