A player selected in the Rule 5 Draft is an individual who is on another team’s minor league roster but is not protected on the 40-man roster. To be eligible for selection, a player must be at least four years removed from being drafted if he was 18 or younger when initially signed, or five years removed if he was 19 or older. The drafting team must pay $100,000 to the player’s original team and keep him on their active 26-man roster for the entire subsequent season. If the player is removed from the active roster, he must be offered back to his original team for $50,000.
This mechanism provides an opportunity for teams to acquire young talent that might otherwise be blocked within another organization. It offers players who are close to Major League readiness, but lacking an opportunity, a chance to break into the big leagues. Historically, some notable players have been acquired via this process and have gone on to have successful Major League careers, demonstrating its potential value in unearthing hidden gems. It also encourages teams to properly evaluate and utilize the players within their system, as failure to do so could lead to another team reaping the benefits of their developmental efforts.
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