Royals Shine with Top Pre-Arb Bonus Payouts

The most recent Collective Bargaining Agreement for Major League Baseball introduced several changes. Two Kansas City Royals players are reaping some benefits following strong 2024 seasons. The Pre-Arbitration Bonus Pool was one such addition in the most recent CBA. The bonus pool — $50 million set aside each season — is divided among Major League players who don’t yet have enough service time to reach arbitration. Even players who have already signed contract extensions, such as Witt, remain eligible. This was also the case with the Prospect Promotion Incentive pick that Witt earned the Royals following his 2024 season.

According to the new CBA, pre-arbitration players receive the following:

• $2.5 million for winning MVP or Cy Young
• $1.75 million for a runner-up finish
• $1.5 million for third-place
• $1 million for fourth or fifth place
• $750,000 for winning Rookie of the Year
• $500,000 for a runner-up finish for Rookie of the Year
• $1 million for a first-team All-MLB nod
• $500,000 for a second-team All-MLB nod

Players receive payments for the highest possible award, meaning Witt Jr. received $1.75 million for his runner-up MVP finish for 2024. Any remaining funds following Awards payouts are then dispersed to the Top 100 eligible players based on other criteria such as WAR. According to ESPN’s Jeff Passan, Witt topped the pre-arbitration payouts at $3.08 million. Royals lefty starter Cole Ragans also received the fifth-highest payout at $1.64 million.

Ragans finished the season with a fourth-place Cy Young finish. His first All-Star campaign saw him pitch to a 3.14 ERA across 32 starts with a league-leading 10.8 strikeouts per nine innings.

Related