An individual is eligible for selection in the First-Year Player Draft (MLB Rule 4 Draft) if the person is at least 17 years old, has not previously signed an MLB or minor league contract, and is either a resident of a U. S. state or territory or Canada and has been for at least one year, or is not a resident but was enrolled in a high school (known as "secondary school" in Canada) or college in a U. S. state or territory or Canada within the previous year, and...

1. Player has graduated from high school (or "secondary school") and has received a diploma (if the player graduates early and receives a diploma prior to turning 17, the player is eligible for selection if he turns 17 no later than 45 days after the draft and the player submits written notice of early graduation to the MLB Commissioner by January 15th);

2. The player's high school class has graduated (12th grade) and player has not yet graduated from high school but player's high school athletic eligibility has expired, or player dropped out of high school at least 365 days prior to the draft, or player attended a junior college the previous school year, or player is attending a four-year college and the school has no baseball program, or player is attending a four-year college and player has completed at least junior year of athletic eligibility, or player is attending a four-year college and is age 21 or older (or will turn 21 within 45 days of the draft), or player withdrew from a four-year college at least 120 days prior to the draft.

A player dismissed from a four-year college for academic reasons less than 120 days prior to the draft is eligible for selection only with the consent of the MLB Commissioner. 

For purposes of draft eligibility, a GED is not considered a high school diploma.
NOTE: Prior to the 2017 draft, a GED was considered equivalent to a high school diploma for purposes of draft eligibility. 

A club is not permitted to select a player in the Rule 4 Draft two years in a row, unless the player gives his approval in advance.

A high school player eligible for selection may elect (in advance) to have his name removed from draft eligibility in that particular Rule 4 Draft.

Prior to the draft, the MLB Commissioner's office will designate what it considers to be the Top 300 players in the draft, and offer each of the players an opportunity to furnish in advance of the draft access to the player's certified medical history available to be reviewed by all 30 MLB clubs. Players are not required to participate in the program, but if a player declines to participate, the player may not furnish medical records to any club or clubs prior to the draft.    

From among the Top 300 players, the MLB Commissioner's office will designate what it considers to be the Top 50 pitchers in the draft, and offer each of the pitchers an opportunity to submit a recent certified MRI of the pitcher's shoulder, elbow, or any other part of the body that has received medical treatment during the course of the previous season, available for review by all 30 MLB clubs prior to the draft. Pitchers are not required to participate in the program.   

FIRST-YEAR PLAYER DRAFT (MLB RULE 4 DTAFT  ) - NEGOTIATION LIST

Players selected in the MLB First-Year Player Draft (MLB Rule 4 Draft) are placed on a club's Negotiation List.

The signing deadline is 5 PM (Eastern) on August 1st or 14 days after the last day of the draft, whichever comes first (July 25th in 2023).   
NOTE: The signing deadline cannot be on the same day as the MLB Trade Deadline. 

A player selected in the Rule 4 Draft will be declared a free-agent if he is not offered a contract by the signing deadline.

In most cases, a player selected by a club in the Rule 4 Draft will remain on the club's Negotiation List until either the player signs or until the signing deadline (whichever comes first), and if a club does not sign a Rule 4 Draft pick by the deadline, the player is removed from the club's Negotiation List and becomes eligible for selection again in the next Rule 4 Draft in which the player would be eligible for selection.

A college senior with no eligibility left who is selected in the Rule 4 Draft will remain on the club's Negotiation List until the player signs or until one week prior to the next Rule 4 Draft.
 
If a player is selected in the Rule 4 Draft after the 10th round and enrolls in a junior college and remains enrolled for the entire school year, the player can be signed during a period of time beginning with the completion of the junior college's baseball season (including post-season) up until one week prior to the next Rule 4 Draft. 
NOTE:  Called a "draft & follow," a club signing a previously-selected JC player prior to the next draft can offer a maximum bonus of $225,000, and the bonus does not count against the club's Rule 4 Signing Bonus Pool. 

A player eligible for selection in the Rule 4 Draft who is not drafted ("Non-Drafted Free-Agent" or "NDFA") can sign with any club after the conclusion of the draft any time up until one week prior to the next Rule 4 Draft, unless and until the NDFA enrolls in a four-year college, in which case MLB Rule 4 Draft eligibility rules apply.
NOTE: A player eligible for selection in the 2023 MLB First-Year Player Draft who is not selected can be signed by any MLB club as a Non-Drafted Free-Agent (NDFA) beginning at 9 AM (Eastern) on July 12th, but clubs are not permitted to discuss with a draft-eligible player the possibility of signing the player as a NDFA prior to or during the draft. 

A player selected in the MLB Rule 4 Draft or a Rule 4 eligible NDFA cannot be signed to a Major League contract.

A player who signs after being selected in the MLB Rule 4 Draft (First-Year Player Draft) cannot be traded until after the conclusion of the World Series (no earlier than 9 AM on the day after the final game of the World Series), or for 90 days if the player signs after the World Series. 
NOTE: Previously, a player signed after being selected in the MLB Rule 4 Draft could not be traded until the first anniversary of the player signing his first contract.

A player signed after being selected in the MLB Rule 4 Draft (First-Year Player Draft) cannot be a PTBNL in any trade made prior to the conclusion of the World Series.

CUBS 2023 MLB RULE 4 NEGOTIATION LIST (Last updated 7-21-2023)

DRAFTED PLAYERS: 
1. Matt Shaw, INF (U. of Maryland) - COLLEGE JR - SIGNED 7/16 
2-COMP. Jaxon Wiggins, RHP (U. of Arkansas) - COLLEGE JR 
3. Josh Rivera, SS (U. of Florida) - COLLEGE SR - SIGNED 7/19
4. Will Sanders, RHP (U.of South Carolina) - COLLEGE JR - SIGNED 7/19
5. Michael Carico, C (Davidson) - COLLEGE JR - SIGNED 7/16
6. Alfonsin Rosario, OF (P27 Academy - Lexington, SC) - HIGH SCHOOL - SIGNED 7/16
7. Yahil Melendez, SS (B You Academy - Caguas, PR) - HIGH SCHOOL - SIGNED 7/19
8. Brett Bateman, OF (U. of Minnesota) - COLLEGE JR - SIGNED 7/16
9. Jonathon Long, 1B (Long Beach State) - COLLEGE JR - SIGNED 7/16
10. Luis Martinez-Gomez, RHP (Temple CC) - JC SOPH - SIGNED 7/16
=====================
11.  Zyhir Hope, OF (Colonial Forge HS - Stafford, VA) - HIGH SCHOOL 
12. Carter Trice, 2B-OF (North Carolina State) - COLLEGE JR - SIGNED 7/19
13. Sam Armstrong, RHP (Old Dominion) - COLLEGE SR 
14. Grayson Moore, RHP (Vanderbilt)- COLLEGE JR - SIGNED 7/19  
15. Ty Johnson, RHP (Ball State) - COLLEGE JR - SIGNED 7/19
16. Daniel Brown, LHP (Campbell) - COLLEGE JR - SIGNED 7/19
17. Ethan Flanagan, LHP (UCLA) - COLLEGE SOPH - SIGNED 7/19
18. Brian Kalmer, 3B (Gonzaga) - COLLEGE SR (REDSHIRT JR) - SIGNED 7/16
19. Nick Dean, RHP (U. of Maryland) - COLLEGE SR - SIGNED 7/19
20. Drew Bowser, 3B (Stanford) - COLLEGE JR - SIGNED 7/19

2023 NON-DRAFTED FREE-AGENTS (NDFA) SIGNED BY CUBS:  
Kenten Egbert, RHP (Miami U.) - SIGNED 7/21 
Landon Ginn, RHP (East Carolina) - SIGNED 7/21
 

There is a maximum limit on the aggregate amount of money that each club can pay as signing bonuses to players selected in a First-Year Player Draft (MLB Rule 4 Draft) before penalties begin to accrue.

Prior to the Rule 4 Draft, each MLB club is assigned a “Signing Bonus Pool” (SBP) equal to the aggregate pre-assigned bonus value of all of the club’s draft slots in the first ten rounds (including supplemental & compensatory draft picks). The higher the slot, the higher the bonus value. (The collective MLB SBP is determined in advance by calculating industry revenues). 

The Cubs 2023 Rule 4 Draft SBP is $8,962,000 (was $10,092,700 in 2022)

If a club fails to sign a player selected in the first ten rounds (including supplemental draft picks), the value of that slot is deducted from the club’s SBP.

There is no bonus value assigned to draft slots after the 10th round, but if a club pays a signing bonus in excess of $150,000 to a player selected in the 11th round or later or to a player eligible for selection who was not drafted, the amount of that bonus in excess of $150,000 is deducted from the club’s SBP.
NOTE: A player eligible for selection in the MLB First-Year Player Draft who is not selected can be signed by any MLB club as a Non-Drafted Free-Agent (NDFA) beginning at 9 AM (Eastern) on the day after the final day of the draft. However, clubs are not permitted to discuss with a draft-eligible player the possibility of signing the player as a NDFA anytime prior to 9 AM on the day after the final day of the draft.   

If a club exceeds its SBP in a given Rule 4 Draft, a tax will be assessed and future Rule 4 Draft picks could be forfeited, depending on how much the club exceeded its SBP. (The club’s 1st Round draft pick in the next Rule 4 Draft is forfeited if the club exceeds its SBP by 5-10%, its 1st & 2nd round draft picks in the next Rule 4 Draft are forfeited if the club exceeds its SBP by 10-15%, and the club’s 1st Round picks in the next two Rule 4 Drafts are forfeited if the club exceeds its SBP by more than 15%).

Money collected from the tax on clubs that exceed their SBP will be distributed to qualifying clubs as Revenue Sharing funds, and forfeited draft picks will be reassigned by lottery. (Any club that exceeds its SBP is excluded from the lottery).

MLB RULE 4 DRAFT COMPENSATION DRAFT PICK 

A Rule 4 Draft compensation pick is awarded to a club if the club is unable to sign a player selected in one of the first three rounds of the MLB Rule 4 Draft (including compensation draft picks between rounds 1-2, 2-3, and 3-4, Competitive Balance draft picks, draft picks awarded to a club after the club loses an Article XX-B MLB Free-Agent Qualified Player, and draft picks assigned to clubs from the SBP forfeited draft pick lottery).

A club must offer a drafted player at least 40% of the slot value in order to be eligible to receive a compensation draft pick if the player does not sign. 
EXCEPTION: A club is required to offer a drafted player at least 40% of the slot value in order to be eligible to receive a compensation draft pick if the player does not sign - UNLESS - the drafted player is one of the Top 50 pitchers designated by the MLB Commissioner's office prior to the draft and the pitcher declined to submit an MRI

If a player selected prior to the 3rd round of the Rule 4 Draft does not sign, the club receives an extra compensation selection in the next Rule 4 Draft, one slot lower than where the club selected the previous season.

If a player selected in the 3rd round of the draft does not sign, the club receives an extra compensation selection after the 3rd round in the next Rule 4 Draft, with clubs selecting in inverse order of league standings from the previous season. (In the case of two clubs finishing with the same winning percentage the previous season, league standings from two seasons back will be used to break the tie. If the clubs are still tied, league standings from three seasons back, four seasons back, etc, will be used to break the tie).
NOTE: In 2020 (only), if a player selected in the 3rd round of the Rule 4 Draft does not sign, the club receives an extra compensation selection in the next Rule 4 Draft, one slot lower than where the club selected the previous season rather than after the conclusion of the 3rd round. . 

A club would receive another compensation pick in the next Rule 4 Draft after that if a player selected with an extra compensation pick does not sign (same slot as the extra compensation draft pick for a player not signed after being selected prior to the 3rd round, and between the 3rd round compensation picks and the 4th round for a compensation draft pick not signed after being selected after the 3rd round), but there is no additional compensation pick awarded the following season (three years removed from the original draft pick) if a club is unable to sign that player.

A compensation draft pick awarded to a club after the club is unable to sign a player selected in a previous draft is NOT subject to forfeiture if that club signs an Article XX-B player who was extended a Qualifying Offer from another club.

ARTICLE XX-B FREE-AGENT / QUALIFYING OFFER COMPENSATION DRAFT PICK 

A club will receive a compensation draft pick if another MLB club signs an Article XX-B free-agent prior to the next Rule 4 Draft (First-Year Player Draft) if the club extended a Qualifying Offer to the player and the player declined the offer.   

Beginning with the 2018 MLB Rule 4 Draft, Article XX-B Qualified Player Compensation draft picks will be slotted between the 2nd & 3rd round of the draft (immediately after Competitive Balance Round "B"), between Rounds 1 & 2 (prior to Competitive Balance Round "A") for any club receiving revenue sharing funds that loses a Qualified Player who signs a major league contract worth more than $50M, and between rounds 4 & 5 for Competitive Balance Tax payers (club's payroll exceeds the so-called "Luxury Tax").

If a player selected with a draft pick awarded as the result of a club losing a Qualified Player does not sign, the club receives a compensation selection in the next Rule 4 Draft, one slot lower than where the club selected the previous season. There is no further compensation if a player selected with that compensation draft pick does not sign.

A compensation draft pick awarded to a club after losing an Article XX-B Qualified Player to another club is subject to forfeiture if that club signs a player who was extended a Qualifying Offer from another MLB club.

PROSPECT PROMOTION INITIATIVE (PPI) COMPENSATION DRAFT PICK 

Beginning with the 2022 season, a PPI player is any player in an MLB club's organization who enters a season with rookie status and  having accrued no more than sixty days of MLB Service Time and who is rated as a pre-season Top 100 minor league prospect by Baseball America, ESPN, and/or mlb.com Pipeline (at least two of the three), and then accrues a full year of MLB Service Time in his rookie season. Once a player receives PPI designation, he retains that designation going forward until he is traded or becomes eligible for salary arbitration (whichever comes first).  
EXCEPTIONS: A "Foreign Professional" player (at least 25 years old and has spent all or part of at least six seasons in a recognized foreign professional "major" league), or a player who signs a multi-year major league contract prior to making his MLB debut, or a player who signs a multi-year contract extension after his MLB debut that buys-out his first year of salary arbitration eligibility, cannot be designated a PPI player.  

2023 CUBS POTENTIAL PPI PLAYERS: 
Pete Crow-Armstrong, OF 
Brennen Davis, OF 
Kevin Alcantara, OF 

An MLB club will receive a compensation draft pick between the first and second round of the next MLB Rule 4 Draft (First-Year Player Draft) if a PPI player  wins the Rookie of the Year Award, and/or finishes in the top three in MVP and/or Cy Young Award voting prior to becoming eligible for salary arbitration.  

1. A club can receive no more than one PPI compensation pick in any one draft, even if more than one of its PPI players wins the Rookie of the Year and/or finishes in the top three in MVP and/or Cy Young Award voting;  

2. The same PPI player can generate a compensation draft pick in as many as three different drafts, as long as the player is not traded and/or has not yet qualified for salary arbitration.  

If a player selected with a PPI compensation draft pick does not sign, the club receives a compensation selection in the next Rule 4 Draft one slot lower than where the club selected the previous season. There is no further compensation if a player selected with that compensation draft pick does not sign.

A PPI compensation draft pick is subject to forfeiture if that club signs a player who was extended a Qualifying Offer from another MLB club prior to the Rule 4 Draft.

If a PPI player is traded prior to qualifying for salary arbitration, the player is no longer is designated a PPI player, and so he cannot generate a compensation draft pick for his new club. 

"Competitive Balance" Rule 4 Draft picks are slotted between the 1st and 2nd rounds (Competitive Balance Round "A") and between the 2nd and 3rd rounds (Competitive Balance Round "B").

Beginning with the 2017 Rule 4 Draft, Competitive Balance draft picks will no longer be awarded by lottery. Rather, all clubs who qualify (the ten smallest market clubs and the ten lowest revenue clubs, some of which are the same club) will receive Competitive Balance draft picks in either Competitive Balance Round "A" (between the 1st & 2nd rounds) or in Competitive Balance Round "B" (between the 2nd & 3rd rounds), with each club alternating between the two rounds every-other year.

Beginning with the 2018 Rule 4 Draft, Competitive Balance draft picks will no longer be subject to forfeiture by clubs signing a Qualified Player.

A Competitive Balance draft slot can be traded only during a period of time starting on December 2nd and extending up until two hours prior to the MLB First-Year Player Draft (MLB Rule 4 Draft). The slot cannot be traded for cash unless it is a financial adjustment made to offset the salary of one or more of the players involved in the trade. Also, a Competitive Balance draft slot can be traded only once (only by the club that was awarded the pick). Once traded, the slot cannot be "flipped" to a third club.
NOTE: 2020 and 2021 Rule 4 Competitive Balance draft picks cannot be traded beginning on March 28, 2020, and extending through the conclusion of the 2021 draft.  

If a player selected with a Competitive Balance draft pick does not sign, the club receives a compensation selection in the next Rule 4 Draft, one slot lower than where the club selected the previous season. There is no further compensation if a player selected with a Competitive Balance compensation draft pick does not sign.

A Rule 4 SBP Forfeited draft pick that is forfeited because a club exceeded its Rule 4 Draft Signing Bonus Pool limit will be reassigned to another club by lottery to be held on the Wednesday following the MLB Rule 4 Draft signing deadline. All MLB clubs that have not exceeded its SBP limit as of that point in time are eligible to participate in this lottery.

As with Competitive Balance draft picks, Rule 4 SBP Forfeited draft picks can be traded, but only during a period of time beginning on December 2nd and extending up until two hours prior to the MLB First-Year Player Draft (MLB Rule 4 Draft), and the pick cannot be traded for cash unless it is a financial adjustment made to offset the salary of one or more of the players involved in the trade. Also, a Rule 4 forfeited draft pick can be traded only once (only by the club that was awarded the pick). Once traded, the pick cannot be "flipped" to a third club.

If a club that is awarded a Rule 4 SBP Forfeited Draft pick subsequently exceeds its SBP, the pick will be forfeited and another lottery will be held (date and time TBA by the MLB Commissioner) to allocate the pick to another club.

If a club trades a Rule 4 Forfeited Draft pick to another club, it cannot subsequently sign a player subject to the club's Rule 4 SBP if signing the player causes the club to exceed its SBP.

If a player selected with a Rule 4 Draft SBP forfeited draft pick does not sign, the club receives a compensation selection in the next Rule 4 Draft, one slot lower than the forfeited draft pick slot from the previous season. There is no further compensation if a player selected with a compensation Rule 4 Draft SBP forfeited draft pick does not sign.

INTERNATIONAL SIGNING BONUS POOL 

There is a maximum limit on the aggregate amount of money each MLB club can pay as signing bonuses to international first-year players.

1. Each MLB club is assigned an "International Signing Bonus Pool" (ISBP) prior to the start of the International Signing Period (ISP).
NOTE: The Cubs 2023 ISBP is $5,284,000 (it was $5,179,700 in 2022).  

2023 ISP: 

$6,366,000 for an MLB club that has a selection in Competitive Balance Round "B" (between the 2nd & 3rd rounds) of the MLB Rule 4 Draft;

$5,825,500 for an MLB club that has a selection in Competitive Balance Round "A" (between the 1st & 2nd rounds) of the MLB Rule 4 Draft; 

$5,284,000 for an MLB club that does not receive Competitive Balance Tax (CBT) revenue sharing (this group includes the Cubs); 

$4,644,000 for an MLB club that does not receive CBT revenue sharing that signed a post-2021 Article XX-B Qualified Player to a 2022 MLB contract;  

$4,144,000 for an MLB club that is a CBT payor that signed a post-2021 Article XX-B Qualified Player to a 2022 MLB contract.  
NOTE: Even though they were not a 2022 CBT payor, the Texas Rangers 2023 ISBP is $4,144,000 because they signed two post-2021 Article XX-B Qualified Players to 2022 MLB contracts. 

2. Any signing bonus of $10,000 or less does not count toward a club's ISBP limit. 

3. An MLB club (excluding clubs that receive CBT revenue sharing and MLB Rule 4 Competitive Balance draft picks) that signs an Article XX-B Qualified Player (not including its own Qualified Players) will have $500,000 subtracted from its assigned International Signing Bonus Pool (ISBP) in the next International Signing Period (ISP) for each Qualified Player signed, and an MLB club that is a Competitive Balance Tax (CBT) payor (club's payroll from the previous season exceeded the CBT threshold) would have $1,000,000 subtracted from its ISBP in the next ISP for each Qualified Player signed. (The Competitive Balance Tax threshold is $230M in 2022, $233M in 2023, $237M in 2024, $241M in 2025, and will be $244M in 2026). So if the Cubs sign an Article XX-B  Qualified Player post-2022, $500K will be subtracted from their ISBP in the 2024 ISP. 

POST-2022 ARTICLE XX-B QUALIFIED PLAYERS SIGNED BY CUBS (last updated 12-21-2022): 
Dansby Swanson, INF   

4. A club can carry-over up to $400K in ISBP space from one ISP to the next ISP if a contract or contracts signed by a player or players is/are voided after the conclusion of the ISP during which the contract or contracts was/were signed. The amount of ISBP space carried-over from the previous ISP must match the amount of ISBP space that was deducted from the club's ISBP after the player or players signed their contracts. If the amount of ISBP space deducted exceeded $400K, the amount of ISBP space in excess of $400K that is carried-over to the next ISP will be divided up into 29 equal amounts and added to the ISBP of the other 29 MLB clubs. 
NOTE: A club's right to carry-over ISBP space from one ISP to the next ISP only applies to contracts that are voided as the result of the player failing his physical or being unable to obtain a visa to the U. S. or if an investigation by the MLB Commissioner determines the player falsified his age and/or identity prior to signing the contract. It does not apply to contracts voided by the MLB Commissioner as a result of a rules violation by the club.

6. The MLB Commissioner can order a club to forfeit up to 50% of its assigned ISBP from one or more ISP and/or one or more player contract(s) can be voided if it is determined that a club and/or a player or players attempted to circumvent the international signing bonus rules.

ISBP RESTRICTIONS/EXCEPTIONS

1. A international first-year player subject to ISBP restrictions cannot be signed to a Major League contract.

2. A player age 25 or older who has spent all or part of at least six seasons playing in an MLB-recognized foreign professional or "major" league is considered to be a "Foreign Professional" player. A "Foreign Professional" is not subject to ISBP international first-year player restrictions and can sign a Major League or minor league contract with any MLB organization without restriction. A signing bonus paid to a "Foreign Professional" does - NOT - count against the club’s ISBP.
NOTE: Beginning with the 2018-19 ISP, any "Foreign Professional" player under contract to a Liga Mexicana de Beisbol (Mexican League) club can sign a Major League or minor league contract with any MLB organization after the conclusion of the LMB season (including post-season), or (with consent of the player's LMB club) during the LMB season. If an MLB club signs an LMB player with "Foreign Professional" player status, the MLB club must pay the LMB club a one-time release fee equal to 15% of the total value of the contract if the player signs a Major League contract or 35% of the total value of the contract if the player signs a minor league contract. No release fee would be paid by the MLB club if the player's contract has expired or if the contract had been terminated by the LMB club prior to the MLB club offering a contract to the player.     

3. A player under contract to a Liga Mexicana de Beisbol (Mexican League) club who has not yet reached "Foreign Professional" player status may sign a minor league contract with an MLB organization - IF - the LMB club agrees to release the player so that he can sign with the MLB club. The Mexican League club would receive a one-time release fee equal to 35% of the total value of the contract (by rule an international player who is not yet a "Foreign Professional" cannot sign a Major League contract). The release fee paid by an MLB club to an LMB club does - NOT - count against the MLB club's ISBP.    
NOTE: Prior to the 2018-19 ISP, up to 75% of a signing bonus paid to a Mexican League player (or a player under contractual control of an LMB club) who had not yet reached "Foreign Professional" player status did not count against the MLB club's ISBP if the signing bonus was paid to the Mexican League club and not directly to the player and the player received no more than 25% of the signing bonus from the Mexican League club. 

TRADING/ACQUIRING ISBP SPACE:

Trading ISBP space was prohibited in both the 2021 and 2022 ISP. 

BEGINNING IN 2023: 

An MLB club can trade up to 100% of its ISBP, and a club can acquire up to 60% of its assigned ISBP via trade or trades.

While up to 100% of a club's originally-assigned ISBP (plus up to an additional 60% of the club's originally-assigned ISBP that might be acquired in a trade or trades) can be traded, there are some restrictions:

1. A club's ISBP (or a portion of it) can only be traded during the International Signing Period (ISP) to which the ISBP was assigned (January 15th through  December 15th);

2. A club can trade ISBP space only in increments of $250K (including multiples of $250K) unless the club was trading all of its remaining ISBP in one transaction.

3. A club's ISBP (or a portion of it) cannot be sold for cash. However, cash can be exchanged if it is used to offset the salary or salaries of a player or players acquired in return for the SBV;

4. A club's ISBP (or a portion of it) cannot be substituted for a "Player to Be Named Later" (PTBNL);

5. Another club's ISBP (or a portion of it) acquired in a trade CAN be traded ("flipped") to a third club.