Rule 5 Draft FAQ

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How the Rule 5 draft works

Sometimes, GMs find gems in Winter Meetings event

Jay Gibbons is one of the best Rule 5 success stories in recent memory.

Many people have heard of it, few completely understand it. But as obscure as the Rule 5 draft might be, the basic premise behind what has sometimes been called the "minor league" draft is something that can easily be explained, even by someone who thinks he doesn't get it.

"I didn't really understand how it worked, but I knew it was a big chance and that I wanted to make the best of it," said Orioles outfielder Jay Gibbons, taken in the 2000 Rule 5 draft. "All I know, you had a chance to be in the big leagues. I knew about the 40-man roster, and that if you weren't on it, you had a chance to get picked up."

Unintentionally, Gibbons -- who is one of the best Rule 5 success stories in recent memory -- hit the nail on the head. The Rule 5 draft, which has taken place at the Winter Meetings for as long as anyone can remember (and will take place this year on Monday in Nashville), not only gives minor league players a shot at making a big league club if drafted, but gives teams a chance to find young diamonds in the rough for a bargain price.

Sounds simple, doesn't it? Of course, reading the actual rule is more confusing than it's worth. So here's the abridged version: A player who is 18 when he's signed can spend four seasons in an organization before he has to be protected. Anyone who is 19 or older must be protected after three years. Once past that time of service, a prospect must be put on the 40-man roster if his organization wants to keep him from being eligible for the Rule 5 draft.

There are three phases of the draft. The Major League phase is the one Gibbons was taken in. Any minor leaguer who fits the above qualifications is game, at any level. In the minor league phases, only players left unprotected -- and there are protected lists at each level to consider for these rounds -- can be selected.

Full Forty

As of Dec. 9, the following teams had a full 40-man roster, and thus would not be allowed to make any selections in the Major League phase of the Rule 5 draft.

Arizona Diamondbacks

Chicago Cubs

Florida Marlins

Minnesota Twins

Philadelphia Phillies

Pittsburgh Pirates

Seattle Mariners

Tampa Bay Devil Rays

At the Major League level, it costs $50,000 to select a player and the team must create space on its 40-man roster to select a player at this level (see chart). The fee is $12,000 for the Double-A segment, and $4,000 for the Class-A draft.

Got it? OK, now here's the main wrinkle. A player taken in the Major League phase of the draft must stay on the 25-man roster all season, or be offered back to the original club for half the original fee.

In the past, players have been "hidden" on rosters as mop-up men in the bullpen or pinch-runners/defensive replacements off the bench. Every once in a while, they find a little more playing time. But there's a certain risk-reward teams have to weigh before slotting a valuable Major League roster spot to someone who probably isn't going to help the team that first season.

Every team gets a list of players eligible for the draft from the Commissioner's Office shortly after 40-man rosters are set. Then they go to work to try to find players that might be worth taking that Rule 5 risk on.

"It's just another avenue we can pursue players to add to our pool," said Jim Rantz, farm director for the Minnesota Twins, who have had success with Rule 5 picks like Johan Santana and a few years earlier, Shane Mack. "We send that list to every scout and every field person that works for us. That raises some eyebrows when a field person sees it -- if a player was in his league (that jumps out). It does happen."

The Kansas City Royals have been on both sides of the risk-reward. Last year, they snagged Miguel Ascencio in the Rule 5 draft, and he ended up being a major contributor, making 21 starts and likely cementing a spot in the rotation for 2003 and beyond. But they also left Corey Thurman unprotected, and he went on to become a valuable reliever for the Blue Jays in 2002. "In our market size, it's definitely an avenue we look at not when the season ends, but even during the season," Royals GM Allard Baird said. "It's definitely an avenue for us to acquire talent."

While the actual draft might not be as confusing as it seems, the process to decide which players are worth taking can be complex. The research really begins once those reserve lists come in. Baird and the Royals have a three-tiered system they use to sort out the possibilities.

"We do it A, B and C," Baird said. "'A' is guys we feel we would take in Rule 5 that would play a legitimate, contributing role to the Major League team. 'B' would be an upside guy. 'C' is for the minor league phase."

Ascencio, Baird said, fit into the B category, which brings up the other issue/problem with Rule 5 selecting. Young players with "upside" usually benefit from regular seasoning and consistent experience in the minors. But if a player's good enough to stick on a Major League roster, his development may be stunted. Ascencio was an exception to the rule.

"Usually development is more subjective with a Rule 5 pick," Baird said. "Generally, they don't get that kind of experience. You look at the upside of the guy, you factor in the age and what a guy can be in the future. Usually, when you're looking at a Rule 5 guy, you're looking long term."

And that is easier said than done. The players available aren't exactly the cream of the crop. Those blue-chippers are invariably protected. Of course, one team's lost cause is another's diamond in the rough. And that's what teams like the Royals will be looking for at Monday's draft.

"Usually, they're not on the 40-man for a reason," Baird said. "Usually, clubs know their own players the best. "There are guys who stand out. When you see them on the list, you have interest. Then you really go to work."

If all the work pays off, the dividend can be a player like Gibbons. The 25-year-old right fielder hit 15 homers in 225 at-bats in his first season with the O's, then finished last season second on the team in home runs (28) and RBIs (69) is his first year as a full-timer. 

Top 10 Rule 5 picks

In the history of the Rule 5 draft, hundreds of players have been selected. Some have gone on to be stars, like Roberto Clemente. Some have become productive Major Leaguers, like George Bell. Most have never made a splash at the big league level, like Rafael Quirico.

That's all part of the risk involved in making Rule 5 selections. But there have been more than enough success stories for teams to continue taking a shot on minor leaguers left unprotected by their organization.

Today's Major League rosters are dotted with Rule 5-ers who made it. Here's a look at the top players selected in the Rule 5 draft since 1990:

1. Fernando Vina

Rule 5 selection: By Mariners from Mets, Dec. 1992. Returned to Mets June 1993.

Seattle had the right idea when it drafted Vina from the Mets. But after 45 at-bats with the Mariners in 1993, Vina was given back to New York. He made the big leagues for good in 1994 and has gone on to make an All-Star team and win a pair of Gold Gloves.

2. Frank Catalanotto

Rule 5 selection: By A's from Tigers, Dec. 1996. Returned to Tigers March 1997.

Even though the Tigers left Catalanotto unprotected in 1996, they knew they had a good player on their hands. He moved from Double-A to Triple-A after the A's returned him to the Tigers and Catalanotto made his Major League debut in that 1997 season. It's taken a while for him to establish himself, but now he is a super-sub with a .296 career average who's name is often mentioned in trade rumors.

3. Antonio Alfonseca

Rule 5 selection: By Marlins from Expos in Triple-A phase, Dec. 1993.

This season's struggles aside, Alfonseca does have 121 career saves. When the expansion Marlins nabbed him, he was a starting pitcher. It wasn't until 1997 that he was converted to a full-time reliever with Triple-A Charlotte. By 1999, he was the Marlins' closer.

4. Matt Mantei

Rule 5 selection: By Marlins from Mariners, Dec. 1994.

If it weren't for injuries, Mantei might top this list. Unlike Alfonseca, Mantei started out as a reliever and had saved 26 games for Seattle's Midwest League team in 1994 when the Marlins came calling. Florida was able to get him into their system and he reappeared in the bigs for good in 1998. He began 1999 closing for the Fish until he was dealt to the D-Backs for Brad Penny and Vladimir Nunez. But he's thrown just 33.2 innings over the past two years.

5. Johan Santana

Rule 5 selection: By Marlins from Astros, Dec. 1999. Traded to Twins with cash for Rule 5 selection Jared Camp on draft day.

In another couple of years, he and the guy next on this list will probably sit at the top of it. The Twins guided him through his first season in the big leagues, giving him 86 innings of mop-up duty and five spot starts in 2000. In 2001, he was limited to just 15 games, but already began to show quick development. This past season was the breakthrough as Santana moved back and forth from the pen to the rotation, posting a 2.99 ERA and striking out 137 in 108.1 innings. Expect him to be a mainstay in the Twins rotation for years to come.

6. Jay Gibbons

Rule 5 selection: By Orioles from Blue Jays, Dec. 2000.

Gibbons hit .321 with 19 homers and 75 RBIs in 2000, so even though he hadn't played a single game above Double-A, the Orioles couldn't pass up the opportunity to take him from the Blue Jays. He played in just 73 games in 2001, but still managed to hit 15 homers in 225 at-bats. He took over as the right fielder in 2002, and responded with 28 homers and 69 RBIs in 136 games. A career .333 hitter in the minors, expect his .243 big league mark to continue to rise with his power numbers in the years to come.

7. Ed Taubensee

Rule 5 selection: By A's from Reds, Dec. 1990. Claimed off waivers by Indians, April 1991.

Even though Taubensee called it quits in 2001, he still warrants mention on this list. After being taken in the 1990 Rule 5 draft, then claimed off of waivers by the Indians, Taubensee made his Major League debut with the Tribe in that 1991 season. He went to Houston as part of the infamous Kenny Lofton trade during the offseason, and went on to spend 10 more years in the big leagues, his best year coming in 1999 when he hit .311 with 21 homers and 87 RBIs for the Reds.

8. Graeme Lloyd

Rule 5 selection: By Phillies from Blue Jays, Dec. 1992. Traded to Brewers day after draft.

Left-handed pitching is always popular at the Rule 5 draft, and that's a big reason why he was selected, then traded in the 1992 draft. He appeared in 55 games with the Brewers the next season, and hasn't looked back since, putting up typical lefty specialist numbers: 516 games, 485.1 innings.

9. Miguel Ascencio

Rule 5 selection: By Royals from Phillies, Dec. 2001.

Like Santana and Gibbons, Ascencio could very well climb the charts with more experience under his belt. Before being taken in last year's draft, Ascencio hadn't pitched above A-ball (Florida State League). The Royals, trying to go young, took a shot and were very pleased with the results. Don't let the 5.11 ERA fool you. Ascencio may have made a larger contribution in his first year in the big leagues -- 123.1 innings and 21 starts -- than any Rule 5 player in memory. And he responded too the added responsibility, dropping that ERA to 4.51 as a starter.

10. Corey Thurman

Rule 5 selection: By Blue Jays from Royals, Dec. 2001.

 

The Royals win some and lose some. In the same draft they selected Ascencio, they lost Thurman to the Blue Jays. A starter throughout the minors, Thurman went 13-5 with a 3.37 ERA at Double-A in 2001, but KC took a chance and left him off the 40-man. The Jays swooped in and gave Thurman an increasingly important role out of the pen as the 2002 season wore on. Throw out one awful start, and Thurman posted a very nice 3.88 ERA in 65 relief innings.

Two Top White Sox players in the minor leagues eligible for the Rule 5 draft.

1.) Jason Stumm

2.) Francisco Franklin

[BridgeportHeather]

Can I have the Cliffs Notes version of this?

[Cerbaho-WG]

Draft player, keep him on 40 man, or send him back.

[CubKilla]

I'll give him credit just for sitting down and typing all that s*** out