League of Dreams - Rules

1. Overview

1. General

With the amount of information becoming more readily available to the public, baseball fans have been more knowledgeable than ever about the business of baseball.  When a trade is made or a player signs a contract with an MLB team, the player's salary must be taken into consideration.

The general premise of The League of Dreams is that baseball fans would be intrigued by a system where they acted more like a General Manager than a fantasy baseball team owner.  The League of Dreams will serve as an extension to the normal fantasy baseball game, where a team retains players through the length of their actual contract and must pay them their real salary.

2. League of Dreams Events Calendar

The Commissioner shall propose all scheduling for the League of Dreams to be voted upon by the owners.

2. Contracts

1. Overview - Player contracts in the League of Dreams are the actual contract the player is signed to in MLB. When a player's major league contract runs out and he becomes a free agent in MLB, he becomes a free agent in the League of Dreams. This applies to non-amateur international free agents who have less than six years of service as well.

1. A player who resigns with a team after becoming a free agent and before the player can discuss monetary terms with other teams is still considered a free agent in league of Dreams (ex: Edwin Diaz).

2. Contract Modifications

1. Extension - If a player signs an extension with his team in MLB, his contract in the League of Dreams is automatically extended, subject to section II(B)(ii), below with one exception: if player has guaranteed salaries until they hit free agency a team can keep the player's existing contract instead of dropping the player. If the player is dropped after a decision is made to keep the player's existing contract, then their new contract would apply if they are signed by any team. If a player is traded after their extension is declined, then the contract changes to the full extension.

Some examples to explain the situation:

(1) As of February 2014, Miguel Cabrera would have been a free agent following the 2015 season with salaries of $22M in 2014 and $22M in 2015. He signed an extension in March 2014 through 2023 with club options for 2024 and 2025. Under current rules, the choices were to (a) drop Cabrera and pay penalties based on his $22M salaries in 2014 and 2015 or (b) keep Cabrera and accept the new contract. Under the proposed rule the choice would be to (a) keep Cabrera under his existing contract with $22M salaries in 2014 and 2015 or (b) keep Cabrera and accept the new contract.

(2) As of February 2021, Lance McCullers had a $6.5M salary and would have been a free agent after 2021. In March 2021, he signed an extension through 2026. Under current rules, the choices were to (a) drop McCullers and pay penalties based on his $6.5M salary or (b) keep McCullers and accept the new contract. Under the proposed rule the choice would be to (a) keep McCullers under his existing contract with a $6.5M salary or (b) keep McCullers and accept the new contract.

(3) As of June 2021, Jonathan Schoop and Matt Barnes would have been free agents after the 2021 season. In July/August 2021, they both signed extensions through 2023. Under current rules, the choices were to (a) drop them with no impact on max salary since it was over halfway through the season or (b) keep them and accept the new contracts. Under the proposed rule the choice would be to (a) keep them and they would be free agents after the 2021 season or (b) keep them and accept the new contract.

(4) As of March 2019, Ozzie Albies has 1 year of service and would have been a free agent after the 2023 season. In April 2019, he signed an extension with guaranteed salaries through 2025. Under current rules, the choices were to (a) drop him and pay penalties based on his league minimum 2019 salary or (b) keep him and accept the new contract. The proposed rule does not change these options since his salaries through free agency were not guaranteed immediately prior to the extension.

2. Declining an Extension - Teams can decline an extension.  If a player signs an extension during the season, a team may choose to immediately drop a player during the season once they sign an extension. The penalty for dropping the player will be based on their contract before the extension is signed. The player must be dropped within 7 days of the extension being signed. If a player is dropped in the offseason after signing an extension, the penalty amount is based on the salary before the extension is signed.
3. Option Contracts - Options in the player's contract also are used in the League of Dreams.  The option on the contract is subject to the decision of the MLB team, not the League of Dreams owner.

1. If an owner releases a player after a team or mutual option is exercised to keep a player in the offseason, an owner may release the player without penalty.

4. If a player does not have a contract on the salary freeze date, which is before the FA Draft begins:

1. If the player signs the contract prior to when salaries start being paid for the season, the player's salary is equal to the amount in the signed contract.
2. If the player signs the contract after salaries start being paid for the season, the annual salary of $0.4 million will be prorated up until when the new contract was signed. The salary in the new contract will apply from the date it is signed. If the new contract causes a team to go over the salary cap, the player cannot earn points for the team until it is no longer over the salary cap.

5. If a free agent signs an extension, the free agent should go on waivers immediately when the extension is announced. If the player is signed by a League of Dreams owner on the same day an extension is announced, the player still goes on waivers.
6. If a player is offered a qualifying offer and accepts the offer, it is treated as a team option for the League of Dreams owner. If a player is offered a qualifying offer and declines the offer, the player is a free agent.
7. If a player is signed to a minor league contract and earns a different salary if they are on the major league roster, the major league salary will always apply for League of Dreams.
8. If a player’s contract is re-negotiated (ex: Yoenis Cespedes’ 2020 contract), the new contract applies.

3. Players under Team Control

1. First Six Years, Generally - During the first 6 years of a player's career, most players do not have a major league contract.  Typically, the first three years of their career, they make the major league minimum, and the next three years they are arbitration eligible.  For additional information, see Arbitration in Section XVI(N), below.
2. First Six Years, Releasing - During the off-seasons of these years, MLB teams can choose to release (non-tender) them. League of Dreams teams can choose to do the same with any player, regardless of what the major league team does to the player.
3. First Six Years, Exceptions - In the event a player has a contract that covers more than one season, that player may not be released under Section II(C)(ii), above without the penalties listed in Section II(D), below.
4. Non-amateur international players become free agents in League of Dreams when they are free agents in MLB regardless of how much service they have.

4. Releasing Players During the Season

1. Releasing a player during the contract will cost a team:

1. 50% of the player's remaining salary in the current year; PLUS
2. 50% of any future salary in the years the monies would have been due.  

2. Maximum Penalty - The penalty for current year annual salary shall not exceed the amount of salary due to the player for the duration of the year.
3. 125% Exception - If so elected, a LOD owner may pay 125% of all future year penalties in the current year imposed by Section II(D)(i)(2) and Section II(D)(i)(3) in lieu of penalties in the future years.  See Sections XIV(A) and(B), below, for clarification. This election must be made when the player is dropped.
4. For team options, no options are assumed to be picked up whether paying 50% penalties in the future or paying the 125% penalty upfront
5. For player options, all options are assumed to be picked up whether paying 50% penalties in the future or paying the 125% penalty upfront
6. Mutual options and options depending on games played, appearances, or similar criteria are assumed not to be picked up whether paying 50% penalties in the future or paying the 125% penalty upfront
7. If a player retires or dies, there shall be no penalty associated with dropping that player.

1. If a player is deemed medically disabled with a career-ending injury, they will be considered retired for purposes of releasing a player without penalty.

8. If a player is drafted and released prior to signing a contract, the drop penalty is based on the $0.4M minimum salary.
9. For a player that is dropped during the same season they were acquired via trade, the drop penalty is raised to 100% instead of 50%.

5. Non-Tendering Players During the Offseason

1. A team can non-tender (release) any player with less than 6 years experience that DOES NOT have a major league contract during the offseason without penalty. For this purpose, the "offseason" ends on the day when teams must be under the salary cap before the free agent draft.
2. In the event a team has signed a contract with a player for a future season, that player CANNOT be released without incurring the penalties delineated in Section II(D). However, if a player would have been eligible to be non-tendered by a LOD team if not for signing an extension with a MLB team during the off-season, that player can be non-tendered by a LOD team without penalty.
3. If a player is non-tendered by an MLB team and has less than six years of service, the LOD team has the option to keep that player at the new contract they sign or release them without penalty. The precedent for this rule is Matt Capps during the 2010 offseason. He was non-tendered by the Pittsburgh Pirates and the LOD owner had the option to keep him at his new contract with the Washington Nationals or release him without penalty.

6. Trades

1. A team can trade players, money, and future draft picks. Draft picks may not be traded more than 5 drafts into the future. If a draft is in progress, that counts as one of the 5 drafts.
2. The maximum amount of money traded to a team cannot exceed the salary of the players traded to that team in the years for which they presently have a contract.

1. Salary cannot be traded to cover draft picks.
2. If a player who is a free agent at the end of the season is traded with the salary of the player, the player must have been owned by the team trading the player for at least 10 days. This rule does not apply to a player who is drafted.

3. The maximum % of salary a given team can receive for a season is 10% of the salary cap. The salary a team trades away in a year is not netted against the salary they have received. If a player is dropped the salary a team received for that player in both current and future seasons will continue to count toward the 10% maximum acquired salary limit.
4. In the event of a draft pick being traded that, upon the determination of the draft delineated in Section X, below, does not exist, the pick shall be modified as follows:

1. In any manner agreed upon by the two parties at execution of the trade;
2. In the event this was not previously agreed upon by the parties:

1. First, the team trading the draft pick has the option to skip over one of the draft picks they own. For example, if a team traded a 3rd round pick and had 49 players at the time of the draft, they could choose to keep it a 3rd round pick and not have a 1st or 2nd round pick in the draft.
2. If the above does not work, the parties may enter into an agreement to modify the previous trade.  In the event no agreement can be reached before the beginning of the draft, proceed as described below.
3. The team that received the pick has the right to take one pick of the other team that is immediately prior to the pick agreed upon (E.g., If a fifth round pick was traded but is not available, the team may elect to take the fourth round pick.  If the fourth round pick is unavailable, the team may elect to take the third round pick, and so forth).
4. If no alternative agreement is reached with the other team by the time the draft order is set (such as trading them another first round draft pick), a team must cut a player to have a first round draft pick in the event they have traded that draft pick.

5. Trades suspected of collusion can be overturned with a 2/3 vote and 2/3 owner voting minimum (owners involved in the trade cannot vote). Trades that are simply believed to be unfair cannot be overturned.
6. Tf a team receives money in a trade and then drops or trades that same player, the team does not get to keep the extra money.  If the player is dropped, the money will help cover the drop penalty only.  If the player is traded, the team loses however much of the money is not traded to the new team.  This ensures that the original trade neither penalizes nor benefits your team's salary cap space.

In order for this to work, trades that involve salary will need to be itemized by each player involved.  For example, instead of trading Player A, Player B, and $10M salary total, team would have to specifically indicate Player A with $6M, and Player B with $4M.  

Furthermore, the team that originally traded the player along with the salary would not get this money back.  They agreed to the initial trade, and what happens to the money afterwards is none of their concern.

See Examples in Section XIV(B).

7. A team must wait at least twenty days before trading for a player they just traded away where they receive more salary for that player than the salary they traded with that player.
8. A team must own a player they received full salary to drop TVM at least 7 days before dropping said player TVM.
9. The amount of a player’s salary that can be included with that player via trade shall not exceed 50% of their remaining salary for that year.

7. Suspended Players

1. A team will not pay the salary of a suspended player if the suspension is at least 15 days. The reduction in salary will apply for all purposes, including the penalty for dropping a player and the maximum salary for a player for the season. It applies to both major league and minor league players.
2. If a player is on administrative leave then there is no salary relief. For any future instances, review that nothing was done to account for Trevor Bauer or Marcel Ozuna.

8. Voided Contract

1. If a player's contract is voided by a major league team, the contract is also voided in the League of Dreams.

9. Signing Bonus

1. Signing bonuses will be spread evenly over the length of the contract. For this purpose, the “length of the contract” only includes guaranteed years (no option years).
2. For International Free Agents, signing bonuses will be spread evenly over the length of the contract. For this purpose, the “length of the contract” only includes guaranteed years (no option years). Posting fees will be excluded from salary.
3. Signing bonuses for International Amateur Players will not count toward salary.

10. Owner Responsibility

1. Owners are responsible for knowing a player’s salary and contract status. They cannot claim reliance on the website if the website is incorrect.

11. Released player

1. If a player is released and that player is signed by another team under a new contract, the prior contract is still applicable.

3. Team Roster and Salary Cap

1. Overview - Each team shall consist of a fifty (50) player roster, consisting of major league and minor league players.

Each team may have have more than fifty (50) players after the Free Agent Draft begins as long as they are at or under the fifty (50) player threshold by the annual deadline before the season begins.

Teams must get down to 50 players by December 31 of each year. They may make up to one trade between the end of the prior season and the December 31 deadline that helps them get down to 50 players.

2. Starting Positions - Each team shall have ALL of the starting positions filled at all times.

1. List of Starting Positions

1. Offensive:

1. C
2. 1B
3. 2B
4. 3B
5. SS
6. OF
7. OF
8. OF
9. UTIL

2. Pitching:

1. SP
2. SP
3. SP
4. SP
5. SP
6. P
7. RP
8. RP

3. Roster Eligibility and Game Limits - Batters qualify at a position with 20 games played in the prior season based on combined major and minor league games, or 10 games played in the current season based on major league games only. If a position player has played less than 20 games in the prior season (major and minor league combined), their position eligibility will be based on positions at which they played at least 20 games (major and minor league combined) two years ago.  If they still do not qualify at a position, then they will quality at the position(s) at which they played the most games in the last season they played in the major and/or minor leagues (major and minor league combined). For all purposes, DH counts as a position.

A pitcher qualifies as a SP with 5 games started in the prior season based on combined major and minor league games, or 3 games started in the current season based on major league games only. A pitcher qualifies as a RP with 10 relief appearances in the prior season based on combined major and minor league games, or 3 relief appearances in the current season based on major league games only. If a pitcher does not qualify as a SP or RP based on the preceding criteria then eligibility will be based on 5 games started or 10 relief appearances  two years ago. If they still do not qualify at SP or RP, then they will qualify at SP or RP based on which they appeared at most in the last season they played in the major and/or minor leagues.

Rosters can be changed daily, but there will be maximum limits for each position follows:

2. Offensive - 162 games played per position (486 total for all OF); AND
3. Pitchers - 176 games started; Any appearance of at least 4 IP will count as a start.;
4. Points earned by players in playoff play-in games will not count towards the standings
5. Teams cannot earn points for more than the stated maximum for a position. If a team does have too many players in their lineup on a given day that will cause them to go over the maximum, they either have to tell the Commissioner which games they want to count for their scoring before any games begin or accept a default that the earlier game played that day counts. If more than one game starts at the same time, the default is that the one resulting in the lower points for their team are the ones that count.

                Players that both bat and pitch can only be owned by one League of Dreams team.

4. Salary Cap

1. Current Salary - The salary cap amount includes:

1. Players currently on the roster;
2. Plus payroll acquired via trades;
3. Less payroll divested via trades;
4. Plus salary penalties;
5. Plus salary incurred from players no longer on the team.

2. Players Salaries - Player salaries are generally determined by http://mlbcontracts.blogspot.com/.  Any discrepancies or disagreements regarding a player's contract shall be taken up with the Commissioner.
3. A team is determined to be over the salary cap if they are projected to be over the cap if they keep all players on their roster for the remainder of the season. Being over the salary cap by any amount is considered being over the salary cap – for example a projected salary between $129.00 million and $129.005 million is treated as being more than $129 million.
4. A team is not able to make a roster move that will allow them to exceed the salary cap during the season.
5. Minimum Salary - The minimum salary for all players is $400,000.
6. Owners will propose as many calculations as they want for how to determine the salary cap. Each calculation will be performed and the results summarized. Then, each owner will state what they think the salary cap should be. The amount at which at least 2/3 of owners agree will be the salary cap for the upcoming season. However, the salary cap can't decrease unless at least 2/3 of owners approve a decrease. Example: 9 owners state the salary cap as follows: Owner 1: 301 Owner 2: 302 Owner 3: 303 Owner 4: 304 Owner 5: 305 Owner 6: 306 Owner 7: 307 Owner 8: 308 Owner 9: 309 The amount at which at least 2/3 of owners agree is 304 so that would be the salary cap for the upcoming season. In theory, this means that at least 2/3 of owners believe the salary cap should be at least this high.
7. If a team is over the salary cap at the beginning of the season, a team's players will not earn any points for all days a team is over the salary cap. This points penalty will not count towards the standings to determine the draft pick order.
8. If the Team Salary Calculator Tool does not indicate the team is over the Salary Cap and the final calculation indicates the team is over the Salary Cap, the transaction will still occur. However, the owner must provide a screen shot of the Team Salary Calculator Tool showing the Maximum Salary from the transaction.
9. Owners are responsible for knowing their maximum salary. Keep in mind to check that the website is updated for your most recent transaction and account for any differences when using the Team Salary Calculator Tool. You are also encouraged to keep track of your maximum salary on your own and take screen shots of the Tool for any transactions you do make. This will help reconcile any differences - we are volunteers updating the site and mistakes will happen.
10. The Salary Cap history is as follows:

1. 2008: $120M
2. 2009: $129M
3. 2010: $129M
4. 2011: $129M
5. 2012: $131M
6. 2013: $133M
7. 2014: $137M
8. 2015: $147M
9. 2016: $155M
10. 2017: $162M
11. 2018: $169M
12. 2019: $172M
13. 2020: $180M
14. 2021: $183M
15. 2022: $190M
16. 2023: $200M
17. 2024: $215M

5. Salary Definitions

1. Player Max Salary - The definition of Max Salary for each player is the amount of money that is owed to the player from the date the player is added to the team until the end of the season.  The calculation is as follows: (([days played during the season per that year’s schedule] - [Number of Days Elapsed since that year’s season started]) / [days played during the season per that year’s schedule]) * Season Salary

1. A team will pay a player’s salary for a given day if that player’s MLB team’s game has not yet started that day. Similarly, a player acquired via free agency or trade can be put into that day’s lineup if the MLB team’s game has not yet started for that day.
2. Player Current Salary - The definition of Current Salary for each player is the amount of money paid from the date the player was added to the team until the current date. This calculation is done as follows: ([Number of Days Elapsed in Season]/[days played during the season per that year’s schedule]) * [Player Max Salary]

2. Team Max Salary: The definition of the Max Salary for a team is the calculation of the following:

6. Exceeding the Salary Cap During the Off Season - Teams may exceed the salary cap during the off season but must be under the salary cap prior to the draft.
7. Suspended Player

1. A suspended player will not count toward a roster spot.

8. The League of Dreams website governs which players are owned by which teams.

4. Minor League Roster

1. There is no minimum or maximum number of minor league players a team may have. However, a team may have no more than 40 players on the major league roster; players on the Injured List count toward the 40 player limit.
2. There will be one Minor League Waiver Periods (MLWPs) each week for Minor Leaguers which ends each Monday night at midnight EST.

A player is a Minor Leaguer until the end of two full MLWPs that begin after his first major league game. For example, a player who first played on Sunday would still be a Minor Leaguer for both the MLWP the next day on Monday at midnight EST deadline and the following Monday at midnight EST deadline . If they are not signed during that period, they can be signed as a Major Leaguer on a first-come first-serve basis after that.

Owners will submit claims for Minor Leaguers to the website. However, if there are contingency moves to include, then email leagueofdreams@gmail.com describing those contingencies before the applicable MLWP ends. Owners must include details on priority if more than one player is submitted and other roster moves to remain at or under the 50-man roster maximum if they are awarded a player.

Minor Leaguers will have their own Waiver Order. It will start in reverse order of the prior season's standings. If only one team submits a claim for a player, there will be no change in the Waiver Order. If more than one team submits a claim for a player, the team with the higher Waiver Order will be awarded the player and then their Waiver Order will move to the bottom.

The first MLWP will be after results for the Manual Waivers Process after the draft are released.

All waiver claim submissions and rules to add/drop players will be announced to the league.

5. League Settings and Scoring System

1. Scoring System - Point Values are as follows:
   

2. Scoring System Changes - Changes to the Scoring System may only be made during the off season.  Voting shall be done in the manner consistent with Section XII(A).

6. Disabled List

1. There shall be no maximum number of players on the LOD Disabled List.  Players on the Disabled List do not count towards the maximum team size discussed in Section III.
2. A team may only place a player on the Disabled List in LOD who is on the Disabled List in the Major Leagues.

1. No exceptions shall be given at any point (e.g., players who are not placed on the disabled list at the end of the year).
2. No player shall be allowed to be on the LOD Disabled List if they are not on the MLB Disabled List.
3. The Minor League Disabled List is considered to be non-existent for purposes of LOD.

3. Violation of Disabled List Rules and Penalties

1. A team is considered in violation of the Disabled List rules at the moment of the violation.  Once the violation has been noticed, an email will be sent to the violating team and the Official League of Dreams email address.
2. Once an email has been sent, the team in violation has seven (7) days to return to compliance with the rule(s).  If the team does not return to compliance within the amount of time delineated above, one (1) penalty point is assessed per day at the time delineated in the email.

7. Games and Pace

1. Teams must make best efforts to fill every position with an active player who plays consistently.  
2. See Section X(B) for information on the consequences of not reaching specific games played minimums.
3. [Reserved]

8. [Reserved]
9. Trade Deadline

1. The trade deadline shall be 10 PM EDT on a date voted on by owners before the season begins.
2. The amount of money involved in trades cannot be restructured after the trading deadline has passed.
3. [Reserved]

10. The Off Season and the Free Agent Signing Draft

1. The Free Agent Signing Draft will begin on a date determined by the Commissioner.
2. Draft Format - The format of the draft will go worst team first until the best team for each round except as noted below for the first round and supplemental draft picks. Dates shown apply for the 2022 season and similar dates will be set for subsequent seasons..

4 weeks prior to the end of the season (September 8, 2022 for the 2022 season) a playoff format will be started solely for the purpose of determining the 1st round draft order and awarding supplemental draft picks described below. There will be 3 brackets and teams will remain within their assigned bracket for the duration of the playoff:

(1) Teams in 4th through 7th place as of the day before the 4-week playoff begins (September 8, 2022)

(2) Teams in 8th through 11th place as of the day before the 4-week playoff begins (September 8, 2022)

(3) Teams in 12th through 15th place as of the day before the 4-week playoff begins (September 8, 2022)

However, any team that does not have at least 1,061 games played for batters and 131 games started for pitchers through September 7, 2022 will automatically receive the 11th overall draft pick and be ineligible for a supplemental draft pick. A team must also meet the following positional minimums to qualify for the playoffs:

Catcher: 86 games

1B, 2B, 3B, SS: 102 games each

OF: 305 games

Relief Pitcher Appearances: 92 games

If more than one team fails to meet the minimums then the team with the worse record will receive a better draft pick. The playoff brackets will also be reconfigured such that the worst 4 teams eligible for the playoffs will be in Bracket 3, next worst 4 teams in Bracket 2 and remaining teams in Bracket 1. For example, if the 12th place team as of the day before the playoffs begin (September 7, 2022) does not meet one of the  games played minimums then they are not eligible for the playoffs and automatically get the 11th overall pick. Then the 11th place team moves into Bracket 3, the 7th place team into Bracket 2, and Bracket 1 only has 3 teams with the 4th place team getting a bye in the first round. This example will be extrapolated in the event more than 1 team does not meet the minimums.

Each bracket will have a 2-round head-to-head playoff as well as a 4-week competition. Using Bracket 3 and the year 2022 as an example:

For the period September 8, 2022 through September 21, 2022, team 12 will play team 15 and team 13 will play team 14. The team with the most points in that period for each matchup will play each other for the period September 22, 2022 through October 5, 2022; the winner of that matchup will receive the 1st overall pick of the 2023 draft The loser of that matchup will receive the 2nd overall pick of the 2023 draft.

The two losing team from the 1st round matchup will also play each other in the 2nd round. The winner will receive the 3rd overall draft pick and the loser will receive the 4th overall draft pick.

In addition to the 2-round head-to-head playoff, the team in the bracket with the most points over the 4-week period will get a supplemental draft pick that will be after the end of the 1st round (pick #16).

The other two brackets will operate the same way with the following exceptions:

(1) The supplemental draft pick for Bracket 2 will be after the end of round 2 (pick #32) and the supplemental draft pick for Bracket 1 will be after the end of round 3 (pick #48).

(2) A team which finishes in the top 4 for the season-long standings will not be eligible for either a supplemental draft pick or a re-ordering of their 1st round draft pick. The draft pick for the top 4 in the season-long standings will continue to be picks 12 through 15.

During each 2-week matchup period, only the first 14 games started for starting pitchers will count for that matchup period. Similarly, any games started in excess of the first 14 in each matchup period will not count toward determining points for the supplemental draft pick during the 4-week period.

3. The draft will be as long as it takes for all teams to have at least 25 players and up to 50 players.  Each team shall have no more than eighteen (18) hours for each pick. Players who are determined to be out for the season will not count towards the 50 player roster that can be drafted; however, any players for whom this determination is made cannot be on the Major League roster during that season. For this purpose, a player must be on the 40-man roster of a MLB team to qualify; however, it is possible that the same player will not be on the MLB team’s DL and will still count toward the 50 player maximum roster size after the draft is completed.
4. Eligible Players

1. Players new to the LOD must have either:

1. Been drafted in the MLB First-year Player Daft (Rule IV) during the previous summer (See http://mlb.mlb.com/mlb/draftday/rules.jsp) and signed a contract with a MLB team. For example, Aaron Crow was drafted in 2008, did not sign with the team that drafted him, and was not eligible for the 2009 Free Agent Signing Draft; or
2. Signed a contract with a team as a free agent.  Daisuke Matsuzaka would have been eligible in 2007, whereas Orlando Hernandez would have been eligible in 1999 (as he signed in March 1998). For this purpose, an international player will not be required to officially sign a contract to be eligible for the free agent draft; the announcement of an agreement being reached with a major league team is sufficient for them to be eligible for the Free Agent Draft.

2. Players previously in the LOD who are free agent for any reason.
3. Players who became free agents solely to penalize a team for misconduct (ex: Kevin Maitan from the Atlanta Braves) will not become free agents under League of Dreams.

5. A team may only trade their draft pick if they have e-mailed the Commissioner prior to the previous draft pick being selected that they are in negotiations to trade that draft pick. The e-mail to the Commissioner must also copy the team they are in negotiations with. The draft pick can only be traded to the team(s) the owner previously informed the Commissioner they were in negotiations with. The intention of this rule is to prevent owners from waiting the full time in the hope that they will find a trading partner if they have not been having negotiations already.
6. Penalty Points

1. [Reserved]
2. [Reserved]
3. [Reserved]

7. [Reserved]
8. Players released after the deadline for dropping players prior to the Free Agent Draft (for example: 2/25/2011 for 2011 Draft) are not eligible for the draft. They are next eligible to be signed as part of the manual waiver process after the draft. If they are not claimed on waivers, they may be signed as a free agent by any team (not as part of the Free Agent Draft).
9. The number of draft picks a team has in the draft will be Maximum roster size-(number of players owned) + draft picks acquired - draft picks traded + DL player; see C. above for who qualifies as a DL player for this purpose.
10. An owner may choose to pass on their draft pick. If they pass and do not choose a player before their next pick, they are assumed to pass on the next pick as well. Once the last pick of the draft is made, the draft is over – regardless of how many picks have been passed.
11. Teams may not draft a player that puts them over the salary cap unless they are able to drop all of their players who make more than the minimum and still pay players they own at least $20M to field a fifty player roster.

11. Prizes and Fees

1. Fees - Each team shall write a check or give cash to the Commissioner for $70, for their team for the season.  The Commissioner is merely holding the money and has no possessory interest in the money.  The fee shall be physically given to the Commissioner or postmarked using the United States Postal Service prior to February 15 of the current year.  Failure to do so will result in loss of ALL DRAFT PICKS.  In the event of a loss of all draft picks, team shall fill roster spots via the waiver wire or free agency after the season has begun.
2. Prizes
   After additional amounts needed to host the website and create the trophy with engravings are paid, the prizes are as follows:

1. 1st Place: 50% of Prize Money
2. 2nd Place: 25% of Prize Money
3. 3rd Place: 15% of Prize Money
4. 4th Place: 10% of Prize Money

12. Modifications to the Rules

1. All modifications to the rules require a minimum of 2/3rds of the teams voting to vote for the change.

1. Teams with more than one (1) owner get one (1) total vote.
2. A minimum of nine (9) teams must vote for the vote to be official.

2. In order to change a rule during the season, the vote must be unanimous.

13. Anti-Tanking Provisions and Disappearing Owner Provisions

1. Every team must, on a daily basis, put the line up in play generally calculated to score the most points.  A team that is determined to be tanking may be removed by a LOD vote which is described in Section XIII(A)(i) and (ii), below.

1. In the event a team is believed to be tanking, a vote is to be undertaken in which twelve (12) teams must vote, an exception to the general rule located in Section XII, above.
2. The vote will remain open for no longer than five (5) days and voting CANNOT be anonymous.
3. Teams may officially abstain from voting by indicating such on the voting form or via email.  The purpose for abstention would be to meet the twelve (12) vote requirement without altering the outcome of the vote.
4. A vote indicating abstention is counted in the total votes for purpose of meeting Section XIII(A)(i) and are not counted either way for purposes of Section XIII(A)(vi).
5. The vote will remain open for no longer than five (5) days and no less than three (3) days.  The voting CANNOT be anonymous.  
6. A 2/3 majority is required for removal.

2. An owner that does not update his team for an unreasonable period of time can be removed by the same manner as described in Section XIII(A), above.  An unreasonable period of time is an amount of time beyond the normal limits of LOD team ownership.
3. Any action that is solely for the purpose of improving a team’s draft pick is tanking.  In order to determine tanking, the voting process delineated in Section XIII(A) shall be used.  Based upon a vote using the rules delineated in Section XIII(A), tanking may result in the loss of a franchise or moving the next 1st round draft pick to the end of the draft.
4. If an owner is convicted of tanking, the league will vote on which of the punishments in Section XIII(C)(i) and Section XIII(C)(ii) will apply. The voting rules described in Section XIII(A) will apply.
5. At the end of the regular season the league will vote on whether any owners who meet at least one of the following criteria should be removed from the league. A person who receives at least 10 votes to be removed from the league will be removed from the league.

1. (1) The owner does not respond to a league-wide e-mail the Commissioner sends at the end of the regular season asking if each owner wants to return for the following season
2. (2) The owner incurs penalty points for either two consecutive years or two out of the past three years for not playing enough games or innings
3. (3) At least three owners provide evidence to the league that they sent an e-mail inquiring about trade possibilities with an owner and that owner did not respond.
4. (4) At least one owner believes the person is passive and/or uninvolved.

14. Examples - These examples are intended to be demonstrative and not all-encompassing. Some may reflect amounts/percentages that have been updated since the examples were created.

1. Releasing a Player with Future Salary before Salaries are Frozen

Player A on (LOD) Team Z is on (MLB) Team AA:

2011 $2m

2012: $3m

Player A signs a contract extension with Team AA on February 15, 2011, before salaries are frozen for the 2011 season.

2011: $5m

2012: $10m

2013: 15m

2014: 15m

2015: 20m

2016: 20m

If Player A is dropped in 2011, the payments would be as follows:

2011: 30% penalty - $1.5m

2012: 10% penalty - $1m

2013: 10% penalty - $1.5m

2014: 10% penalty - $1.5m

2015: 10% penalty - $2m

2016: 10% penalty - $2m

If Player A is dropped in June 2011, and Section II(D)(iii) is elected:

2011: 30% penalty + 75% of total of future penalties ($8m x 0.75) $6m

B.        Trading money with players beginning in 2020

Example 1)  Matt Harvey is owned by Team A and earns 11M in 2019.  Team A trades Matt  Harvey to Team B before the start of the season, along with his entire 11M salary.  Team B drops Matt Harvey immediately at the start of the season.  Team B uses the money received in the trade to cover the entire drop penalty (3.33M), but the extra money is lost.  Team B ends up with the same cap space as it had before the trade.

Example 2)  Brian Dozier is owned by Team A and earns 9M in 2019.  Team A trades Brian Dozier to Team B at the start of the season, along with his entire 9M salary.  Team B then trades Brian Dozier to Team C at the midpoint of the season (having paid Dozier 4.5M so far), along with 2M in salary.  Team B uses the money it received to cover the 2M it trades to Team C, but the remaining 2.5M of the original 9M is lost.  Team B ends up with the same cap space as it had before the trade.

Example 3a)  Charlie Morton is owned by Team A and earns 15M in 2019 and 15M in 2020.  Team A trades Charlie Morton to Team B, along with 10M in 2019 and nothing in 2020.  Team B drops Charlie Morton without TVM at the beginning of 2019.  The money received in the trade (10M in 2019) covers the drop penalty for 2019 (4.5M), but not the penalty for 2020 (3M) because the 2020 penalty is not yet owed.  The remaining money from 2019 is lost.  Team B ends up with the same 2019 cap space as it had before the trade, but pays 3M in 2020.

Example 3b)  Charlie Morton is owned by Team A and earns 15M in 2019 and 15M in 2020.  Team A trades Charlie Morton to Team B, along with 10M in 2019 and nothing in 2020.  Team B drops Charlie Morton with TVM at the beginning of 2019.  The money received in the trade (10M in 2019) covers the entire TVM drop penalty (5.6M), and the remaining money is lost.  Team B ends up with the same cap space as it had before the trade in both 2019 and 2020.

Example 3c)  Charlie Morton is owned by Team A and earns 15M in 2019 and 15M in 2020.  Team A trades Charlie Morton to Team B, along with 10M in 2019 and 10M in 2020.  Team B trades Charlie Morton to Team C at the beginning of 2019, along with no salary.  Team B loses the extra money it received for 2019 and 2020.  Team B ends up with the same cap space as it had before the trade in both 2019 and 2020.  

3. [RESERVED]

4. Election of a New Commissioner - Standard Election

Owner A, Owner B, Owner C, and Owner D have decided to run for the position of Commissioner.  There are 15 teams (A-O) and 17 owners.  Each team receives one total vote.  

First Vote:

A: 3 votes

B: 2 votes

C: 1 vote

D: 4 votes

Abstain: 1 vote

Outcome: Voting is accepted as 11/15 teams voted.  No owner received 2/3rds of total vote.  Owner C is removed from the voting.  

Second Vote:

A: 4 votes

B: 2 vote

D: 5 votes

Abstain: 0 votes

Outcome:  Voting is accepted as 11/15 teams voted.  No owner received 2/3rds of total vote.  Owner B is removed from voting.

Third Vote:

A: 4 votes

D: 6 votes

Abstain: 1 vote

Outcome:  Voting is accepted as 11/15 teams voted.  No owner received 2/3rds of total vote.  No owner is removed from voting.

Fourth Vote:

A: 2 votes

D: 6 votes

Abstain: 2 votes

Outcome:  Voting is accepted as 10/15 teams voted.  Owner D received at least 2/3rds of total vote (6/8).  Owner D is the Commissioner for the following year.

Comment - At the next Commissioner vote, all Owners are eligible for election as Commissioner.

15. Miscellaneous Rules

1. Commissioner

1. [Reserved]
2. A Commissioner cannot be an owner who became an owner within the previous twenty-four (24) months.
3. Election of a Commissioner - Standard Election

1. A minimum of 2/3rds of teams voting (and not abstaining) must vote for the winner.
2. Teams with more than one (1) owner get one (1) total vote.
3. A minimum of eight (8) teams must vote for the vote to be official.
4. The vote shall take place prior to the start of the season.
5. The Outgoing Commissioner shall be in charge of the vote and results.  The Outgoing Commissioner shall make the votes known to the league if ANY owner so requests.
6. After each round, the lowest-vote getting prospective Commissioner shall be removed from the ballot until there are only two Commissioner Candidates remaining.
7. A vote indicating abstention is counted in the total votes for the purpose of meeting Section XV(A)(iii)(3) and are not counted for the purpose of meeting Section XV(A)(iii)(1).
8. See the example in Section XIV (D) for clarification.

4. Election of a Commissioner - Special Election.  In the event a Commissioner resigns or is Removed as a result of a vote under Section XV(A)(v).

1. A minimum of 2/3rds of teams voting must vote for the winner.
2. Teams with more than one (1) owner get one (1) total vote.
3. A minimum of eight (8) teams must vote for the vote to be official.
4. Teams may officially abstain from voting by indicating such on the voting form or via email.
5. A vote indicating abstention is counted in the total votes for purpose of meeting Section XV(A)(iv)(3) and are not counted either way for purposes of Section XV(A)(iv)(1).
6. The vote will remain open for no longer than five (5) days and no less than three (3) days.  The voting CANNOT be anonymous.  
7. In the event of a vote regarding the removal of the Commissioner, the Commissioner immediately preceding the current Commissioner (known as the “Previous Commissioner”) shall be in charge of the vote and results.  The Previous Commissioner shall make the votes known to the league if ANY owner so requests.
8. After each round, the lowest-vote getting prospective Commissioner shall be removed from the ballot.

5. Removal of a Commissioner

1. A Commissioner may be removed by a vote.
2. A minimum of one-half of teams voting must vote for removal.
3. Teams with more than one (1) owner get one (1) vote.
4. A minimum of nine (9) teams must vote for the vote to be official.
5. Teams may officially abstain from voting by indicating such on the voting form or via email.
6. A vote indicating abstention is counted in the total votes for purpose of meeting Section XV(A)(v)(4) and are not counted either way for purposes of Section XV(A)(v)(2).
7. The vote will remain open for no longer than five (5) days and no less than three (3) days.  The voting CANNOT be anonymous.  
8. In the event of a vote regarding the removal of the Commissioner, the Commissioner immediately preceding the current Commissioner (known as the “Previous Commissioner”) shall be in charge of the vote and results.  The Previous Commissioner shall make the votes known to the league if ANY owner so requests.

2. Team Ownership Transfers

1. Teams are permitted to add an owner at any time, subject to a veto using the voting rules in Section XII.  If a team adds an owner and the first owner resign ownership within two years, both owners must resign ownership.  
2. Teams may transfer their team to another owner at any time, subject to League approval, using the voting rules in Section XII.
3. New Owner due to Owner Dismissal or Resignation - In the event an owner is dismissed or resigns, a new owner must be elected by a simple majority vote of the owners.  No minimum number of teams voting is required.  The commissioner shall determine the metric to use in order to select a new owner.  Generally, some sort of test regarding fantasy baseball is preferred.

1. A new owner may not make a trade for at least seven days after they have officially become a new owner.

4. All penalty points incurred by a prior owner will remain with the team when the new owner takes over, except for penalty points associated with not picking up drafted players on ESPN and setting one’s minor league roster by the annual deadline.

16. Definitions, Acronyms, Abbreviations, and Other Names

1. League of Dreams - Abbreviated “LOD”.  The name of this fantasy league.  League of Dreams and LOD are used interchangeably.
2. Major League Baseball - Abbreviated “MLB”, also known as “The Majors” and “The Major Leagues”.  All are used interchangeably.  Major League Baseball (MLB) is the highest level of professional baseball in the United States and Canada.  Specifically, Major League Baseball refers to the organization that operates the National League and the American League by a joint organizational structure.
3. Minor League Baseball - Often referred to as “The Minor Leagues” or “The Minors.”  Minor league baseball is a hierarchy of professional baseball leagues in North America and South America that compete at levels below that of Major League Baseball.  All of the minor leagues are operated as independent businesses, and many are members of Minor League Baseball, an umbrella organization for leagues that have agreements to operate as affiliates of Major League Baseball.  Minor League Baseball does not include the Japanese League, the Mexican League, or any other international league that does not have direct affiliates of Major League Baseball teams.
4. Released - Often called “dropped.”  The process by which a player is dismissed from a MLB or LOD team.
5. Tender.  A verb often used as a past participle in the word “tendered.”  Simply the act of offering a contract to a player.  MLB teams do this.  It is common for a player who has yet to reach arbitration to be tendered a contract.  Players are also tendered offers during their arbitration years, though the process is slightly different.
6. Non-tender.  A verb often used as a past participle in the word “non-tendered.”  The act of declining to offer a contract to a player who is either in a stage before arbitration or during arbitration.  MLB and LOD teams are both able to do this.
7. Sent down - The act of sending an eligible player from the MLB or LOD roster to the Minors.
8. Called up - The act of sending an eligible player from the Minors to the MLB or LOD.  The inverse act of “sent down.”  
9. Disabled List - Abbreviated “DL.”  In Major League Baseball, the DL is a method for teams to remove their injured players from the roster in order to summon healthy players.  In LOD, the same is generally true. This is now known as the Injured List (IL).
10. Season - Generally April 1 through September 30.  Often shifted by 2-3 days.  Any time where salary is accruing and players may earn points.
11. Off-Season.  Any time that it is not the Season.
12. The Commissioner - The person in charge of the LOD.  Similar to Ralph in Lord of the Flies.
13. Option - The ability for a party (or parties) to make a selection.

1. Club Option - Abbreviated OC.  An option that the MLB or LOD team may accept or decline.
2. Player Option - Abbreviated OP.  An option that the player makes.  MLB and LOD teams do not have the ability to accept or decline.
3. Other Option - Abbreviated OO.  Any other option.  Often a Mutual Option whereby both the MLB/LOD team and the player may accept or decline.

14. Arbitration - Abbreviated “Arb.”  A player is eligible for arbitration when that player has three or more years of service, but less than six years, may file for salary arbitration.  In addition, a player can be classified as a "Super Two" and be eligible for arbitration with less than three years of service.  A player with at least two but less than three years of Major League service shall be eligible for salary arbitration if is eligible for salary arbitration in MLB.  Players generally have three (3) years of arbitration.  “Super Two” players have four.
15. Free Agent - Any player eligible for the draft.  Generally, a player with six or more years of Major League service who has not executed a contract for the next season is eligible to become a free agent.
16. The League of Dreams Website - “The Website”, etc.  https://leagueofdreams.ddns.net
17. The Official League of Dreams email address - leagueofdreams@gmail.com
18. Team or Owner - Used interchangeably and inconsistently to mean the same thing.  In effect, the LOD Team and the LOD Owner are the same.
19. Anonymous Voting - The votes (source of votes and direction of votes) shall be made known to every member of the league at the request of any member of the league.  Voting shall only be made public after the voting has concluded.
20. The Rules - This document.
21. Starting Pitcher

1. Abbreviated "SP."
2. A player who starts the major league game in which they are earning points for the League of Dreams team
3. If a team starts a player who does not officially qualify as a SP in the SP position in their lineup, the standings will be manually adjusted to remove points earned by that player in the SP position.

22. Games played

1. Most often abbreviated as G or GP
2. A statistic used to indicate the total number of games in which a player has participated (in any capacity); the statistic is generally applied irrespective of whatever portion of the game is contested.

23. Relief Pitcher

1. Abbreviated "RP."
2. A player who is defined as a RP by ESPN's rules.

17. Rules Interpretations - Rules are intended to be given their common English meaning.  Rules are intended to stand on their own without reference to other rules except where specifically noted.  However, the Rules are intended to be read as a whole.