Via Jim Callis, the Yankees will have just $4,192,200 to spend on the first ten rounds of the draft (eleven picks) this year thanks to the new Collective Bargaining Agreement. That number will go down ever so slightly if Derrek Lee manages to sign a big league contract. The Twins lead the way with a $12,368,200 draft pool while the Angels only have $1,645,700. Ouch.
Teams that exceed their draft pool by no more than 5% are taxed at 75%, and after the 5% they start forfeiting future picks in addition to the tax. Picks from the 11th-40th rounds each have a $100k soft cap, and any money exceeding $100k for those late picks counts against the draft pool. If a team fails to sign a player in the first ten rounds, they lose that spot’s pool money. They don’t get to reallocate it elsewhere. The Yankees have spent between $6.1M and $8.0M on the draft in each of the last five years, and last year they spent $4,202,500 on the first ten rounds (ten picks).