The first instance of a Japanese-born player playing in Major League Baseball was in 1964, when the Nankai Hawks, an NPB team, sent three exchange prospects to the United States to gain experience in MLB's minor league system. One of the players, pitcher Masanori Murakami, was named the California League Rookie of the Year while playing for the Fresno Giants (the San Francisco Giants' Class-A team).
Giants executives were impressed with his talent and on September 1, 1964 Murakami was promoted, thus becoming the first Japanese player to play in MLB. After Murakami put up good pitching statistics as a reliever, Giants executives sought to exercise a clause in their contract with the Hawks that, they claimed, allowed them to buy up an exchange prospect's contract. NPB officials objected, stating that they had no intention of selling Murakami's contract to the Giants and telling them that Murakami was merely on loan for the 1964 season. After a two-month stalemate the Giants eventually agreed to send Murakami back to the Hawks after the 1965 season. Thus, after pitching one more season for the Giants, Murakami returned to Japan to play for the Hawks. This affair led to the 1967 United States – Japanese Player Contract Agreement, also known as the "working agreement", between MLB and NPB, which was basically a hands-off policy.
MLB and NPB officials created the posting system as a combined reaction to three cases in the 1990s, involving NPB players who moved to MLB. The first of these occurred in the winter of 1994 when pitcher Hideo Nomo, with the help of agent Don Nomura, became the second Japanese-born player to play in MLB, 30 years after Murakami. Nomo, who was not yet eligible for free agency in Japan, was advised by Nomura that the Japanese Uniform Players Contract's reserve clause limited the Kintetsu Buffaloes' control over him to Japan only. Nomo utilized this loophole by voluntarily retiring from NPB to terminate his contract with the Buffaloes, circumvent its reserve clause and play in MLB. He announced his retirement from NPB in late 1994 and signed with the Los Angeles Dodgers in February 1995, where he won the National League Rookie of the Year award. The following year, the Dodgers signed Nomo to a three-year, $4.3 million contract.
A new agreement between MLB and NPB, with significantly different rules, was announced on December 16, 2013 and took effect immediately; it continued through the 2016 MLB and NPB seasons. It removed the blind auction system, changing the system to allow for negotiations between any team that wished to sign the player, and capping the posting fee at $20 million. The agreement was extended for an additional season during negotiations for a new agreement.
The current posting agreement was reached after the 2017 MLB and NPB seasons. The agreement runs through October 31, 2021, the expiration date of MLB's current collective bargaining agreement.[needs update] Not all of the provisions applied immediately—for example, the Hokkaido Nippon-Ham Fighters were allowed to set a $20 million posting fee, the maximum allowed under the previous agreement, for two-way star Shohei Ohtani, whom they posted shortly after approval of the new agreement. Since the end of the 2018 NPB and MLB seasons, posting fees have been based on the type of contract a player signs and the deal's value. For players signed to MLB contracts, the posting fee is based on the amount of guaranteed money in the initial contract:
For players signed to minor-league contracts, the fee is a flat 25% of the contract's value.
The system only applies to players currently under contract with a Japanese team, although players who have nine or more years of playing service with NPB are exempt. It does not apply to free agents or to amateur players who have never played in NPB. Mac Suzuki, Micheal Nakamura, Kazuhito Tadano, and Junichi Tazawa are the only Japanese players to have debuted in MLB without having played in NPB. The system does not work in reverse; it does not regulate MLB players, such as Alex Cabrera, who moved to NPB.
When a player under contract with a Nippon Professional Baseball team wishes to play in Major League Baseball, he must notify his current team's management and request that they make him available for posting during the next posting period (November 1 – March 1 through the 2013 season, and November 1 – February 1 in the current agreement). The NPB team can reject this request, and the player will not be posted. However, if the team consents, the player is presented to the MLB Commissioner, who then notifies all MLB teams of the posted player.
If the bid was rejected, the NPB team retained rights to the player. If it was accepted, the successful MLB team was granted the exclusive rights to negotiate with the player for 30 days. If the player and the MLB team agreed on contract terms before the 30-day period expired, the NPB team received the bid amount as a transfer fee within five business days. The player was then free to play for his new MLB team in the coming season. The transfer fee was not included when calculating an MLB team's total payroll, which is subject to a luxury tax when it exceeds $155 million. If the MLB team could not come to a contract agreement with the posted player, then no fee was paid and the rights to the player reverted to his NPB team. A player could request to be posted again in subsequent years, and the process would be repeated with no advantage to the club that had won the bidding the previous year.
Under the current process (2017), the NPB team notifies the MLB Commissioner of a posting, with the posting fee determined by the value of the contract that a posted player eventually signs with an MLB organization. Once the MLB Commissioner announces the posting, the player has 45 days to sign with an MLB team. Unlike the past system, in which only the team that won the bidding process had negotiating rights, the current system allows the posted player to negotiate with any MLB team willing to pay the posting fee. As in the previous process, if the player signs with an MLB team during the negotiating window, the signing team will pay the posting fee; otherwise, his rights revert to his NPB team. Also mirroring the past system, an unsuccessfully posted player can request a posting in a later year, with the process repeated.
Since its implementation in late 1998 the posting system has been heavily criticized. Ichiro Suzuki's agent remarked that "the player literally gets zero advantage from [the posting system]... the Japanese teams benefit by holding the players hostage". Don Nomura called the process a "slave auction". Much of the criticism of the system stems from its forcing NPB players to negotiate their contracts solely with the MLB team that submitted the highest bid. The Japan Times columnist Marty Kuehnert believes that since no other team is allowed to submit competitive counter-offers, negotiations result in salaries below the player's market value. Kuehnert also believes the system fosters a "take-it-or-leave-it" situation; if the team and the player have not finalized contract negotiations by the end of a 30-day period, the team can make a low offer knowing that the player's only other option is to play in Japan for another year. It has been suggested that this is a violation of the Anti-Monopoly Act, a Japanese antitrust law that prohibits parties from signing an international agreement or contract that "contains such matters as constitute an unreasonable restraint of trade or unfair business practices".
In the middle of the 2012–13 posting season, MLB approached NPB seeking to change the way MLB teams bid for the right to negotiate with NPB players. Instead of using a silent auction in which teams bid blindly, MLB would prefer its teams to participate in a traditional, open auction where the bids are known and teams can knowingly outbid each other. Such a change would likely lower the price of the transfer fees paid to NPB teams. MLB and the players' unions agree that they'd prefer to see the players receive more money for the transfer rather than the teams. The Japan Times columnist Jason Coskrey also believed that these talks provided the JPBPA an opportunity to voice their concerns about the posting system and attempt to gain more leverage for themselves during the posting process. The new agreement, as noted, was announced on December 16, 2013, with most of the changes desired by MLB and players from both leagues.
The posting system was criticized by MLB insiders and by the U.S. media, after the controversial 2006–07 posting period. Before the posting of the period's first player, Daisuke Matsuzaka, in early November 2006, there was speculation that he might draw bids as high as $30 million—more than twice the previous record bid that Ichiro Suzuki had garnered in 2000–01. After his silent auction was closed, it was revealed that Matsuzaka had drawn a bid of $51.1 million, shocking American and Japanese baseball executives. The Boston Red Sox's winning bid was more than $11 million higher than the next largest.
With the negotiations between Matsuzaka and the Red Sox at a stalemate as the negotiation period neared its close, The Washington Post's Dave Sheinin questioned both parties' intentions. Sheinin believed that the Red Sox had foreseen the contractual stalemate and had submitted a high bid simply to deny the New York Yankees an opportunity to negotiate with Matsuzaka. However, after Matsuzaka's agent Scott Boras threatened to take Matsuzaka back to NPB if his price was not met, Sheinin theorized that Boras intentionally wanted to hinder contract negotiations. ESPN The Magazine's Tim Kurkjian described the situation as "the most obvious game of chicken ever." Sheinin suggested that, should the negotiations fail, Boras could take legal action on the grounds that the requirement of MLB teams to pay large transfer fees to NPB teams artificially depressed the player's personal contract. Boras did not believe that the transfer fee should affect the player's compensation.
Despite the negotiation difficulties, the Boston Red Sox eventually signed Matsuzaka. The team paid approximately $103.1 million in total, including the transfer fee and contract, to acquire the pitcher. Kurkjian believes that with fees and contracts this high, small-market teams could not afford to compete with large-market teams for the rights to negotiate with some posted Japanese players. Kurkjian blames the posting system's use of a blind bidding system as the cause of Matsuzaka's "outrageous offer." He also postulates that Matsuzaka's high bid amount helped to inflate the bids for Kei Igawa who was posted two weeks later, perpetuating the problem further. After winning the negotiation rights to Igawa, Yankees' general manager Brian Cashman told reporters that "the posting system, clearly with what took place this winter, might not necessarily be the best system". Kurkjian claims that other MLB executives already believe that a traditional free agent structure, where the highest bidder wins, would be better than the current system. Cashman and Yankees team president Randy Levine met with NPB team officials in early 2007 to discuss the posting system, among other things. These meetings did not result in any immediate changes.
The agreement is officially called the "United States – Japanese Player Contract Agreement" (日米間選手契約に関する協定). In English, the process is most commonly referred to as the "posting system", though it is also sometimes referred to as the "posting agreement". The corresponding Japanese term is most commonly written in katakana as "ポスティングシステム", though "ポスティング制度" is sometimes used. /wiki/Katakana
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