The tax only goes up to 100% (though the draft pick penalty is 2 number one picks at the 15% overage). MLB could very well void a contract if the penalty cannot be paid (if they had already forfeited the pick).stevemc wrote:also - doesn't the draft pool in this scenario for the Nationals shrink each year by having less picks in the top 10 rounds? Therefore doesn't the tax compound itself year after year in this scenario? There has to be a breaking point.
The 100% is theoretically not enough however. Draft picks are the best investment in baseball. There was a clear case for every team spending much more money in the draft because of the marginal value per dollar expended. If only one team is busting the limits there is an artificial drag on bonuses that is probably more than 100%. Thus spending 100% extra (and the team would still have their pool from picks 2-10) is not really that much if it is getting you Strasburg/Harper type players. Even Appel type players if you get several of them.