Rule 4 SBP Forfeited Draft Picks
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.