Using the posting system, Golden Eagles pitcher Hisashi Iwakuma was granted permission to pursue an MLB contract during the 2010 offseason. Though the Oakland Athletics won exclusive negotiating rights through auction-style bidding, the two sides were unable to agree on terms by the end of the 30-day period.
A Brief Explanation of the Posting System
Nippon Professional Baseball and Korean Baseball Organization have posting systems that limit free agents’ rights to sign with foreign pro baseball leagues. To negotiate a new deal with an MLB franchise, NPB and KBO players must petition their current organizations to agree to post them; the club is (in essence) being asked to temporarily forfeit rights to the player in exchange for compensation. If their current club agrees to grant their request, the team will then notify the NPB Commissioner’s Office of the decision. The NPB then contacts the MLB Commissioner, whom in turn apprises all American and National League front offices.
Players may be posted between November 1st and March 1st. Once posted, MLB ballcubs have four days to bid on rights to a thirty-day window of exclusive contract negotiations with the player. These bids are “silent”– other teams aren’t aware of the terms. Placed in US dollars, bids are sent directly to the MLB Commissioner’s Office.
Following the completion of the four-day auction period, the MLB then notifies the player’s NPB ballclub (via the NPB Commissioner’s Office) of the winning bidder. If the NPB club chooses to accept the winning bid, they agree to grant the MLB franchise a thirty-day period of private contract negotiations with the posted player. If the NPB team rejects the bid, they forfeit the auction money completely.
The posting system only applies to players currently under contract with NPB and KOB teams. Free agents and players whom have completed nine years of service time are exempt from these posting rules and may openly negotiate with foreign professional baseball leagues. For instance, Daisuke Matsuzaka who was under contract with the NPB’s Seibu Lions at the time, was posted before negotiating an MLB contract with the Red Sox in the ’06 offseason. During the same offseason though, NPB free agent Hideki Okajima signed with Boston directly and without a posting fee.
