When the Pittsburgh Pirates traded outfielder Starling Marte to the Arizona Diamondbacks, it was viewed as a three player trade with some cash exchanging hands. The Bucs sent $1.5 million to help cover Marte’s salary/buy out while the D’Backs sent $250k in International Signing Bonus money to the Bucs.
The immediate reaction was that the team was acquiring “money” in typical Pittsburgh Pirates fashion. However, this is not the case. When a team acquires International Bonus money, they are acquiring a slot-allotment that they are allowed to spend on International Amateur Free Agents. Every team in Major League Baseball has a hard-cap on what they are allowed to spend on these types of prospects.