Constitution of Jefferson League Baseball

All potential constitutional amendments must be written by a league member. For an amendment to be ratified it must be approved by no less than ¾ of the league members.

III. Interpreting the Constitution

All constitutional issues are to be taken to and resolved by the commissioner. The commissioner has the option of opening the issue to a league vote, but is in no way obligated to.

IV. Role of the Commissioner

The League is to have a commissioner. The commissioner is obligated to mediate any disputes among league members and resolve any constitutional issues in a timely manner for the betterment of the League. The commissioner is obligated to maintain an accurate list of transactions made by all league members during the season. The commissioner is obligated to monitor the effectiveness and diligence of the League Financial Officers. The commissioner is obligated to maintain a record of all league information and statistics relevant to future study (past draft results, final standings, et cetera). The commissioner is obligated to make this information available to any league member who is so interested. The commissioner can create a rule ex post facto if, in his opinion, it is for the good of the League. Any decision made by the commissioner may be overruled if a majority of the League members vote against the decision.

If the acting commissioner is performing his duties in a biased, lackadaisical, or unsatisfactory manner in the opinions of the league members, or is abusing his office’s privileges, then he may be dismissed. If no less than ½ of the league members, excluding the commissioner, vote for dismissed, then the active commissioner is dismissed. A new commissioner will be elected promptly by all league members. If the top vote-getter fails to garner a majority of the vote, then the top two candidates will enter a subsequent election. The eventual winner will assume the role of commissioner immediately.

V. Role of the Treasurer

The League is to have a treasurer. The treasurer will collect league fees from each league member before the beginning of each season in accordance with the league payment plan. He is responsible for depositing this money into a league bank account and/or investing it. The treasurer is responsible for any losses that may ensue. Any profit will be used for the benefit of the League and not for his personal use.

If the acting treasurer is performing his duties in a biased, lackadaisical, or unsatisfactory manner in the opinions of the league members, or is abusing his office’s privileges, then he may be dismissed. If no less than ½ of the league members, excluding the treasurer, vote for dismissal, then the active treasurer is dismissed. He will promptly transfer all funds and financial information to the new treasurer upon his election. The treasurer assumes total responsibility for all league-related money given to him by league members.

VI. Finance Board

The League shall have a Finance Board. It shall be comprised of three League Financial Officers to be elected by nomination and majority vote confirmation by the League. League Financial Officers will serve indefinite terms on the Finance Board.

Each League Financial Officer is responsible for keeping accurate records of the league financial activities of one-third of the organizations in the League. No League Financial Officer shall be permitted to keep official league financial records for his own organization. The duties of each League Financial Officer include keeping accurate and updated rosters for each organization complete with contractual information, maintaining accurate records of any league costs or fees assessed to each organization, keeping accurate records of any player signings or trades involving league money for each organization, and having at all times an available cash figure for each organization.

League Financial Officers are responsible for providing each organization with a financial report at three times throughout the year: approximately one week prior to Opening Day, at the All-Star break, and within one month of the conclusion of the season. League Financial Officers are responsible for notifying the commissioner’s office if any organization has exceeded the luxury tax threshold or is found to be temporarily bankrupt.

If any acting League Financial Officer is performing his duties in a biased, lackadaisical, or unsatisfactory manner in the opinions of the league members for whose organizations he is responsible, or is abusing his office’s privileges, then he may be dismissed. If no less than ½ of the league members for whose organizations the League Financial Officer is responsible vote for dismissal, then the League Financial Officer is dismissed. A new league member must be nominated and confirmed to take his place.

VII. Fining Board

The League shall have a Fining Board. It shall determine which actions deserve fines besides those defined in the Constitution. It shall determine the type of fine and the amount of the fine for all offenses. The board will be comprised of three elected owners, each serving indefinite terms. An alternate will be elected to sit on the Fining Board if and when a regular Fining Board member is accused of an infraction. A fine must be approved by the commissioner. If it is not, then the remaining members of the League (excluding the Fining Board members, the commissioner and the accused owner) will vote to decide whether or not the fine should be assessed. If a fine is overturned, a new fine is not to be assessed and the accused is acquitted.

VIII. League Fees and Payments

League fees for the 2006 season are $100 per organization. Fees shall increase every second year from this point in one hundred dollar increments until the cost reaches $500 per organization. Every winter, each organization must pay the annual fee for the season three years from that point.

League fees must be paid by the 1st of February every year. If a League member does not pay his annual fees on time, he may be fined $100,000 per day late. If he is financially unable to pay his dues on time, he may work out a payment plan with the treasurer to fulfill his financial obligation. All League members must pay their dues as soon as they are able. If, at the treasurer's discretion, a financially delinquent League member is paying his debt to the best of his ability, the treasurer may waive the daily fine. For a payment plan to be waiver-eligible, 25% of League fees must be paid by the 1st of February, and 100% of League fees must be paid by the 1st of July.

Each year, the top four finishers will receive awards in accordance with the following ratios: 8 (1st place): 4 (2nd place): 2 (3rd place): 1 (4th place). The League Champion will be granted possession of the League Trophy for one year.

IX. Duration of the League

The League will exist for an indefinite number of seasons. If a league member chooses to leave the JLB, he must notify the League three full seasons in advance. From the time of his announcement, said member must pay or have paid league fees for the next three full seasons.

If a league member chooses to leave the JLB, all players from the disbanded organization become free agents following the league member’s last season in the JLB.

All league members will be given one opportunity to leave the League immediately with no monetary penalty whatsoever following the completion of the second season under the terms of the Constitution of Jefferson League Baseball. Any league member choosing to leave the League at this time shall be forever stricken from all JLB-related activities.

If the League ever drops below ten members, then it shall be disbanded.

X. Expansion

Expansion may occur in the offseason prior to the 1^st of November. Any potential league member must be recommended by an existing league member and submit an essay detailing why they feel his inclusion would benefit the League. The essay ought to prove his dedication and commitment to Jefferson League Baseball. For a potential league member to be accepted he must be approved by no less than ¾ of the League.

Expansion organizations will receive the top draft picks in the Rule 5 Draft, the Minor League Draft and the following season’s Amateur Draft.

If a new league member is accepted, the expansion organization will participate in a low minor league expansion draft prior to the Minor League Draft. When low minor league level cuts are submitted on the 1^st of December, each league member will also be responsible for providing a list of ten protected players who finished the season on any low minor league roster. The expansion organization will then be able to choose up to fifteen players who were either cut from low minor league level rosters or were not protected. No more than two unprotected players may be taken from each existing organization for every expansion organization.

XI. Shortened Season Contingency Plan

If a strike, lockout, war, or natural disaster results in an average of less than 110 games played per MLB team, then the JLB season will not count and all league fees will be refunded for that season. If an average of at least 110 games per MLB team is played, then the JLB season will count. The league winnings will be adjusted proportionally to the number of games played so that the percentage of a full MLB season played is equivalent to the percentage of each prize that will be awarded to the appropriate league members. The remaining money will be returned equally to each league member or added to the League Pot.

XII. Determining the Winner

The following criteria are used to determine team performance: composite batting average, total home runs, total runs batted in, total runs scored, total stolen bases, composite walks and hits per innings pitched, composite ERA, total wins, total strikeouts, and total saves. Teams are ranked in each of the ten categories and given a number of points corresponding to their ranking, with last place receiving one point, second-to-last receiving two points, et cetera.

In case of a tie in a category, the points in question will be equally distributed to the tied teams. The team with the most overall points wins the League Championship. In case of a tie in the overall standings, the prize money in question will be equally distributed to the tied teams.

For record keeping, draft order and playoff bonus purposes, a tie in the final overall standings will be broken by determining which team wins more categories in a head-to-head matchup of the tied teams. If the teams remain tied, the team with more 1^st place category finishes will receive the higher place in the standings. If the teams remain tied, than the higher place will be determined by most 2^nd place category finishes, then most 3^rd place finishes, et cetera.

XIII. Team Names and Ownership

Team names must be alliterative and creative. A name should consist of a city, which must be the league member’s hometown, and a nickname, which must start with the same letter as the city. After Opening Day of the inaugural season, a league member must obtain the approval of the entire league to change his team’s name. Failure to comply with team name regulations will result in a $5 fine per day to be paid to the League Pot.

Teams may be relocated with the approval of the entire League. Teams may only be relocated within Northern Virginia, which includes any location in the counties of Fairfax, Arlington, Loudon, Prince William and Stafford or the cities of Alexandria, Falls Church, Fairfax, Manassas, Manassas Park or Fredericksburg.

Each founding league member retains all rights associated with ownership of his JLB franchise. Each league member may delegate various organizational powers to third party individuals as he sees fit. While a founding league member possesses the right to sell his franchise to a third party individual, any prospective buyer must apply and be approved by the other league members just as would any prospective owner of an expansion team.

XIV. League Finances

1. League Bank

Each organization is to have a JLB bank account. Money from each organization’s league bank account will be withdrawn each season on Opening Day to cover the entire cost of each contracted player’s salary and/or any league costs or fees for the upcoming season. Funds can be withdrawn over the course of the season to pay for player signings, promotions, trades, fines and all other applicable taxes and league costs.

The league bank will be established following the conclusion of the 2005 season. Beginning in the transitional offseason, a base annual income of $100,000,000 will be deposited into each organization’s league bank account. The base income is subject to a performance-based alteration. Organizations with over sixty-five standings points in the previous season will receive an additional $100,000 for every standings point over sixty-five. Organizations with under sixty-five standings points in the previous season will lose $100,000 for every standings point below sixty-five down to fifty-five, $200,000 for every standings point below fifty-five down to forty-five, $400,000 for every standings point below forty-five down to thirty-five, and $800,000 for every standings point below thirty-five. The last place team will lose an additional $1,000,000.

Postseason bonuses will be awarded to the top four teams each season. The first place team will receive an additional $2,000,000; the second place team will receive an additional $1,000,000; the third place team will receive an additional $500,000; and the fourth place team will receive an additional $250,000.

2. Bankruptcy

The cost of annual player salaries, fines and any other applicable taxes or legitimate league costs including the luxury tax should never exceed the amount found in an organization’s league bank account. If an organization is unable to immediately make any of the aforementioned payments in full, it will be rendered temporarily bankrupt.

A bankrupt organization will be unable to take on any additional salary or exercise player promotions or options. A bankrupt organization will be limited to daily roster moves and DL replacements. Bankrupt organizations can make trades in an effort to emerge from bankruptcy. Any trade involving a bankrupt organization which does not improve the financial status of the bankrupt organization is prohibited. The commissioner and the appropriate League Financial Officer reserve the right to veto any such trade should they find that it does not serve to improve the financial status of the bankrupt organization.

No organization will be permitted to exceed the luxury tax threshold if by doing so the organization is put into debt.

Any transaction or trade which puts an organization into debt is prohibited.

During the offseason, any bankrupt organization is only permitted to sign free agents to one-year contracts worth the league minimum.

When an organization emerges from bankruptcy, it is responsible for the payment of any overdue, unpaid player salaries or league fees. The organization will also pay a bankruptcy fine equal to 20% of the amount of these previously unpaid salaries and fees.

XV. Rosters

1. Low Minor League Rosters

Each organization will have three low minor league levels: AA, high-A and low-A. Each organization may hold up to five (5) players in low-A, ten (10) in high-A and fifteen (15) in AA. There is no minimum number of players for any low minor league roster. There are no position requirements for any low minor league roster.

No player who has begun his arbitration track or has ever appeared on any organization’s 40-man roster is eligible to appear at any time on any low minor league roster.

Players are prohibited from starting the season at a level lower than any to which they have ever been previously assigned.

2. 40-Man Roster

Each organization will have a AAA roster consisting of fifteen (15) players and a JLB roster consisting of twenty-five (25) players. Together these rosters form the 40-man roster. Any player is eligible to appear on an organization’s 40-man roster provided that the player has been properly signed to a contract or is in his arbitration period.

Each day during the season, each league member may select players from his JLB roster to appear in a starting lineup consisting of a catcher, first basemen, second basemen, third basemen, shortstop, three outfielders, a utility player and eight pitchers. The statistics accumulated by the players in the starting JLB lineup each day will count towards the league standing points.

3. Setting Rosters

At least one week prior to Opening Day each season, each league member shall have submitted to the commissioner’s office a finalized roster for each organizational level. An organization will be fined $800,000 for every 40-man roster spot that is not filled by this deadline. Any organization failing to submit Opening Day rosters for each organizational level at least one week prior to Opening Day will be fined $250,000 per day until submission.

XVI. Drafts

1. Amateur Draft

A five-round JLB amateur draft is to be held each year in June shortly before the MLB First-Year Player Draft. The draft order will be the reverse standings order from the previous season. Only players eligible for the MLB First-Year Player Draft are eligible for this draft. Amateur players may only be acquired via the Amateur Draft.

Every drafted player, if signed, will receive a signing bonus according to his position selected. The signing bonus replaces the player’s minor league salary for the season during which he is drafted and signed. The 1st overall pick will receive $2,000,000. The 2^nd through 4^th overall picks will receive $1,600,000. The 5^th through 8^th overall picks will receive $1,200,000. The 9^th through 12^th overall picks will receive $1,000,000. All 2^nd round picks will receive $800,000. All 3^rd round picks will receive $600,000. All 4^th round picks will receive $400,000. All 5^th round picks will receive $200,000.

Drafted players are not required to be signed. Each organization has until the 31^st of August following the draft to decide whether to sign its drafted players and assign them to any organizational level. Any drafted player who is not signed becomes a minor league free agent. The organization that initially drafted any unsigned player may not redraft him in that year’s Minor League Draft.

2. Rule 5 Draft

Every year in December there will be a Rule 5 Draft. The draft order will be the reverse standings order from the previous season. A player is eligible to be taken in the Rule 5 Draft if he is currently in a JLB organization but has never appeared on a 40-man roster and either 1) he had 503 career plate appearances, 162 career innings pitched, or 50 career pitching appearances at the end of the previous season or 2) he had 130 career plate appearances, 50 career innings pitched, or 20 career pitching appearances by the end of the season before last. The draft will last a maximum of five rounds, or until each organization passes on selecting a player.

If a player is selected in the Rule 5 Draft, then his new organization must either 1) keep him on its JLB roster for the duration of the following season or 2) return him to his previous organization and pay his previous organization $100,000. The latter organization is under no obligation to keep said player.

An organization may protect a player from the Rule 5 Draft by adding him to its 40-man roster prior to the draft. Any player added to the 40-man roster during the offseason before the Rule 5 Draft must receive a contract of some sort for the following season.

3. Minor League Draft

A Minor League Draft shall be held each spring before Opening Day at a time most convenient to a majority of the League. The draft order will be the reverse standings order from the previous season. A player is ineligible for the Minor League Draft if he has over 130 career plate appearances, 50 career innings pitched, or 20 career pitching appearances; has appeared on a JLB 40-man roster; or has played at a major-league level abroad. Forty-eight hours before the draft, picks will be assigned. Each organization will receive as many picks as it has open spots in the low minor league levels at that time. Any low minor leaguer still owned after said deadline must receive a contract for the following season.

If an organization has committed to trading any number of picks, it must have a sufficient number of empty low minor league roster spots to fulfill those trade obligations. If, when picks are assigned, an organization does not have enough empty low minor league roster spots to fulfill its trade obligations, it will be forced to cut or promote enough low minor leaguers to fulfill its obligations, and no more. Said organization will be fined $100,000 per day until it creates a sufficient amount of empty low minor league roster spots. If an organization has committed to trading away any picks later than its last assigned pick, then its last assigned pick shall be moved to the round following the last pick it has committed to trading.

XVII. Contracts

1. Minor League Contracts

The annual salary for pre-arbitration players in the low minor league levels is $50,000 for players in low-A, $100,000 for players in high-A, and $200,000 for players in AA.

All minor league contracts are one-year contracts. Organizations have the option of resigning low minor league level players every offseason. All minor league contracts are guaranteed and must be paid in full by Opening Day each season.

2. Arbitration

A player begins his arbitration period once he is added to a 40-man roster. His arbitration track begins the following season if he was added on or after the 1^st of September and was either signed off of regular waivers after making his MLB debut or promoted from the low minor leagues. The arbitration period lasts six years. During his arbitration period, a player receives $400,000 in his first year, $600,000 in his second, $1,000,000 in his third, $3,000,000 in his fourth, $4,500,000 in his fifth, and $6,500,000 in his sixth. If a player is promoted from the low minors to the 40-man roster before September 1st, then his promotion contract supercedes his first-arbitration-year contract.

A player may be non-tendered in any offseason during his arbitration period at no cost to his organization. The last day to non-tender a player each offseason is the 31^st of December. If a player is non-tendered, then he becomes a free agent. After his sixth season in arbitration, a player becomes a free agent. If a player is traded during his arbitration period, his contract progression is not altered.

An organization may avoid the escalating salary of a player in arbitration by signing him to a long-term contract. Before his first season on the 40-man roster, a player may be signed to a 6-year, $1,600,000 per year contract. Before his second season, a player may be signed to a 5-year, $2,000,000 per year contract. Before his third season, a player may be signed to a 4-year, $2,600,000 per year contract. Before his fourth season, a player may be signed to a 3-year, $3,400,000 per year contract. Before his fifth season, a player may be signed to a 2-year, $4,500,000 per year contract. A player may not be signed beyond his 6-year arbitration period. The last day to buy out a player’s arbitration years each offseason is one week before Opening Day.

Beginning on Opening Day, 2008, the arbitration long-term contract values will change. Before his first season on the 40-man roster, a player may be signed to a 6-year, $1,700,000 per year contract. Before his second season, a player may be signed to a 5-year, $2,300,000 per year contract. Before his third season, a player may be signed to a 4-year, $3,000,000 per year contract. Before his fourth season, a player may be signed to a 3-year, $4,200,000 per year contract. Before his fifth season, a player may be signed to a 2-year, $4,900,000 per year contract.

A player signed during the offseason may be offerred arbitration should his contract expire within six years of his JLB debut. Should he be offerred arbitration, he will receive an arbitration salary determined by the year he was first added to a 40-man roster, unless doing so would result in a reduction in salary, in which case he will receive the same salary as the previous season.

A player signed via the posting system will not be eligible for arbitration at the conclusion of his initial contract.

3. Free Agent Contracts

Any unowned player who has made his MLB debut is considered a free agent. Every offseason, beginning on the 1 ^st of January, each organization may nominate one free agent for bidding every day. Any MLB Rule 5 draftees from that offseason are also eligible for offseason free agent nominations. All free agent offers must be public and include an annual salary, a contract length, and the Total Contract Value. The organization that nominated the free agent must offer at least the minimum free agent contract of $600,000 for one (1) year.

The leading contract offer is that with the highest Total Contract Value. The Total Contract Value of any offer is the product of its annual salary and its length-based multiplier. The various contract length multipliers are as follows: one (1) year, 1.00; two (2) years, 1.14; three (3) years, 1.25; four (4) years, 1.34; five (5) years, 1.41; six (6) years, 1.45; seven (7) years, 1.48; eight (8) or more years, 1.50.

To determine the minimum raise above the leading Total Contract Value, divide the leading Total Contract Value by the intended new contract offer length, round the quotient up to the nearest $100,000, and then add the minimum raise to the obtained figure to determine the annual salary of the new offer. If the obtained figure is below $2,000,000, the minimum raise is $100,000. If the obtained figure is $2,000,000 or more, the minimum raise is $200,000. A new contract offer consisting of the resultant annual salary and the originally intended contract offer length will be sufficient to exceed the previous leading offer.

Once a free agent is nominated, a thirteen-day preliminary bidding period ensues during which any organization may bid for his services. After the preliminary bidding period has passed, every organization has 24 hours to top the best offer. The bidding closes when the offer with the highest Total Contract Value goes 24 hours without having been exceeded. The free agent then signs that contract.

If a free agent was under contract at the conclusion of the previous season, then his previous organization is eligible for a hometown discount on his annual salary. That organization must only match the leading offer to be considered ahead. If the hometown organization wishes to match the leading offer with another offer of a different length, it may do so by dividing the leading Total Contract Value by the intended contract offer length and rounding the quotient up to the nearest $100,000 to determine the annual salary of its new offer. At this point, the hometown organization does not need to increase the annual salary of its new offer by the minimum raise in order to be considered ahead. If the hometown organization wins the bidding, the annual salary it owes that player is 90% of the salary in its winning offer.

The maximum contract offer length for an annual salary of $600,000 is one (1) year. The maximum contract offer length for an annual salary of $1,200,000 or less is two (2) years. The maximum contract offer length for an annual salary of $1,800,000 or less is three (3) years. The maximum contract offer length for an annual salary of $2,400,000 or less is four (4) years. The maximum contract offer length for an annual salary of $3,000,000 or less is five (5) years. The maximum contract length for any player, regardless of salary, is ten (10) years.

Starting on the 20^th of January, the preliminary bidding period is shortened to six days. The last day to nominate a free agent for bidding is four weeks before Opening Day.

4. Foreign Free Agents

An unowned player who has played at a major-league level abroad, is signed to an MLB contract, but has not yet made his MLB debut is subject to a closed initial bidding process. Such players may only be nominated during the offseason, and may not be nominated later than six weeks prior to Opening Day. After he is nominated for bidding, every organization has two weeks to bid for the rights to negotiate a contract with said player. Bids are confidential and are submitted via the Commissioner's Office. After two weeks, the organization that submitted the highest bid will be notified by the Commissioner's Office. It will then have 96 hours to negotiate a transitional contract with said player. If no contract is agreed upon within 96 hours, the player will be signed to a 1-year, $1,600,000 contract. If no bids are offerred during the two-week period, the player becomes a normal free agent.

5. Contract Buyouts

At any time an organization can buy out the remainder of any player’s contract by paying out immediately and in full the remaining value of the contract. Any player whose contract is bought out is immediately placed on waivers.

In order to make room on the 40-man roster for a promoted low minor league level player or a signed player, a player currently under contract must be released. An organization is not eligible to recover any portion of a released player’s salary for that year. If an organization chooses to release a player with multiple years remaining on his contract, then it must buy out the remainder of his contract, to be paid immediately and in full. All released players are immediately placed on Regular Waivers.

If a team wishes to pursue the option of escaping a player's contract without executing a Contract Buyout, it may place the player on Irrevocable Waivers. Once said player is placed on Irrevocable Waivers, his contract is open to claim from all other teams for 96 hours. If the player is claimed, the claiming team will immediately add the player to its 40-man roster and assume responsibility of the remainder of the player's contract. If multiple organizations claim the player, the lowest in the standings at the conclusion of the player’s waiver period receives the player. From Opening Day until the 1^st of May, the standings from the end of the previous season will be used. The remaining prorated salary owed to the player for that current season will be paid immediately and automatically to his previous team (rounded to the nearest $50,000). If more than one team has placed a claim on the player within his waiver period, the player will be awarded to the team lowest in the standings order as it appears on the morning of the final day of his waiver period. If no one claims the player before the end of his waiver period, his team may elect to retain the player or buy out his contract, thus placing him on Regular Waivers. A player is only eligible to be placed on Irrevocable Waivers once per calendar year.

6. Option Years

An organization may add an option year to the contract of any free agent signed during the offseason. After the annual salary and contract length for a free agent have been finalized, the organization has 24 hours to add an option year to the end of the contract to be worth 150% of the original annual salary or $3,000,000, whichever is greater. If an option year is included in a contract but not exercised, then the organization must buy out the option year at 20% of the contract’s original annual salary or $500,000, whichever is greater. The deadline for exercising an option year on a player’s contract is the 1^st of December each year.

7. Retirement, Career-ending Injury, and Death

If a player with a multi-year contract retires before his contract expires, part of his remaining contract must still be paid. Every year, for as many years as remain on his contract, his organization must pay one-tenth of the product of his annual salary and the number of years left on his contract when he retired. The organization may buy out what it owes the player at any time by paying its debt in full.

In the case of a non-baseball related career-ending injury to a player with a multi-year JLB contract, the player’s organization assumes the responsibility of paying for 20% of the remaining value of the entire contract. The organization has no longer than the amount of years remaining on the contract to make full payment.

The commissioner reserves the right to make a determination as to the nature of any career-ending injury, and subsequently, as to whether or not an organization is eligible to pay only the reduced rate.

Any organization that has begun to make reduced payments to a retired or injured player loses all rights to said player, who becomes a free agent. However, if an injured or retired player does return and is signed by another JLB organization, his previous owner is absolved of all further payments.

In the unfortunate case of the death of any player under contract, any years remaining on the contract of the deceased player will be voided and his organization is absolved of all further payments.

8. Luxury Tax

A luxury tax shall be assessed to any organization whose 40-man roster payroll, including any associated fees, exceeds $100,000,000. If an organization exceeds the $100,000,000 threshold, it will be responsible for paying a tax equal to 50% of the difference between the actual payroll and $100,000,000. This luxury tax must be paid in full when the payroll for that season is withdrawn from an organization’s league bank account. The luxury tax is not recoverable. If an organization cannot afford the luxury tax, it will be considered to be bankrupt.

If at any point during the season an organization takes on additional salary such that it places the organization’s total payroll over $100,000,000, then the luxury tax will be assessed immediately. If an organization is already over the luxury tax threshold and it takes on additional salary so that its payroll reaches a new season-high, then a tax will be assessed equal to 50% of the difference between the organization’s new payroll and its previous high payroll for that season.

XVIII. Mid-Season Signings

If, during the season, an unowned player makes his MLB debut or a player on a JLB 40-man roster is cut, then he will be placed on Regular Waivers for four days. On Opening Day, all free agents are placed on Regular Waivers for four days. During the waiver period for a player, any organization may make a one-year contract offer, to be worth no less than $600,000 and in $100,000 increments, to said player. All offers must be submitted to the Commissioner’s Office prior to the end of the fourth day after the player debuted, marked with the appropriate date for opening. The organization with the highest offer must sign the player to that contract, regardless of the point in the season, to be paid in full immediately upon signing. If multiple organizations offer the same amount, the lowest in the standings at the conclusion of the players’ waiver period receives the player. From Opening Day until the 1^st of May, the standings from the end of the previous season will be used.

If a player on Regular Waivers receives no contract offers by the end of his fourth day on waivers, then he becomes a free agent. At the start of a season, all unowned players who have made their MLB debut are free agents. Before the All-Star break, a free agent may be signed by any organization to a one-year contract worth $600,000, to be paid in full immediately upon signing. After the All-Star break a free agent may be signed by any organization to a one-year contract worth $300,000, to be paid in full immediately upon signing.

XIX. Promotions

During the season, a player assigned to any low minor league roster may be promoted directly to AAA or JLB, in which case he is added to the 40-man roster. This type of promotion requires that the player be signed to a one-year contract, which is to be paid in full immediately upon the player’s promotion, and which is paid in addition to the player’s minor league contract for the season. Prior to the All-Star break a player promoted to the 40-man roster from low-A receives a $2,000,000 contract; a player promoted from high-A receives a $1,000,000 contract; a player promoted from AA receives a $600,000 contract. After the All-Star break, these contracts are reduced to half of their original value.

Players may not be demoted to any low minor league level at any point during the season.

An option consists of promoting a player either from one low-minor-league level to another or from AAA to JLB. Promoting a player from AAA to JLB is free of charge. If a player is promoted within the low minors, his organization must pay the difference between his previous level’s salary and his new level’s salary. If that player is later promoted to the 40-man roster, he will receive a promotion contract in accordance with the level at which he began the season. Each organization may exercise fifteen (15) options during the season at no additional cost. After this, options may be exercised at the additional cost of $200,000 per option. Options may be traded amongst organizations and do not carry over from one season to the next. Options may be exercised freely during the offseason.

XX. Disabled List Replacements

If a player is placed on the 15-day disabled list, then a replacement may be promoted from AAA at no cost to his organization. When the injured player is taken off the disabled list, his organization must either demote the replacement or use an option to demote another player to AAA.

If a player is placed on the 60-day disabled list, he no longer counts against 40-man roster space. His organization may sign a free agent and replace the injured player on the 40-man roster. When the injured player is taken off the disabled list, his organization must either cut him or another player to clear space for him on the 40-man roster.

XXI. Trades

Trades between organizations may involve players from all organizational levels, future Amateur Draft and Minor League Draft picks, options, and fantasy cash. If fantasy cash is involved in a trade, it must be paid immediately in full. If an organization agrees to pick up any or all of the future salary of a player it is trading away, it will pay that salary at the appropriate time(s) as described in the original contract. The player’s salary will count against the luxury tax figure of the organization paying the player.

The commissioner reserves the right to veto any league trade if in doing so he is protecting the integrity of the League. Trades involving real money are considered bribery and violate the integrity of the League. A processed trade involving money will result in a fine paid to the League Pot by both organizations involved equal to the dollar amount included in the trade. Any such trades will be immediately reversed.

Any player in the low minors may be freely traded at any point. Any player on the 40-man roster may be freely traded until August 5th of each season, with the exception of free agent signees, who may not be traded until the 15^th of May in the year they were signed. From August 5th to September 5th, in order to trade a player on the 40-man roster, a team must request waivers on said player. From September 5th until the conclusion of the season, no player on the 40-man roster may be traded.

To request waivers on a player, a team must make a clear post announcing the placement of said player on Revocable Waivers. The player will be on waivers for 72 hours. If no team claims him during that time, then he may be traded to any team until the September 5th deadline.

If one or more teams claim the player, he may only be moved to the team lowest in standings at the conclusion of his waiver period. The team that requested waivers then has three options. It may either 1) withdraw the waiver request and, by mandate, keep the player for the remainder of the season, 2) allow the claiming team to acquire the player and return 20% of the player's season salary to the waiving team (rounded to the nearest $50,000) in addition to assuming any future contractual obligations to said player, or 3) negotiate a trade with the claiming team within two days. Such a trade may only involve cash, draft considerations, players who do not appear on a 40-man roster, or players who have already either cleared waivers who have been successfully claimed by the team engaged in negotiations. If none of the above actions are declared within 72 hours of the end of said player's waiver period, the default is option two (2).

XXII. Fines

Fines can either involve real dollars and/or fantasy dollars. Any fine whose amount is not specifically articulated in the Constitution is to be handled by the Fining Board. All real money fines are to be collected by the treasurer. If an owner is fined for any offense, he has 96 hours to appeal the amount of the fine. If he chooses to appeal, he must provide the rest of the League with an alternative fine, which may be as low as zero dollars. The League members, excluding the appealing owner and the members of the Fining Board, will then vote between the two fines. If the majority of the voting owners votes for the alternative fine, then it shall replace the original fine. If the vote is a tie, the original fine stands.

1. Inactivity

League members may be fined for inactivity. At any point during the year any league member can request a league check-in. To do so, he must post a message at the league’s main website requesting that each league member respond to the check-in. Each league member has 96 hours to respond in some manner, be it via message post, e-mail, telephone, et cetera. If any league member responds late, he may be fined in real dollars or fantasy dollars. If a league member will be without internet access for an extended period of time, he must notify the League.

2. Unsportsmanlike Managerial Conduct

In the interest of maintaining the integrity of league competition and sportsmanship, each and every owner shall conduct his team's business in a spirit of sportsmanlike managerial conduct. An owner is automatically, but not exclusively, involved in unsportsmanlike managerial conduct if he:

1. Attempts to worsen the performance of his team, either by playing injured or grossly inferior players or eliminating or trading productive commodities from his roster in the interest of sinking his team in the standings or in an act of despair or protest.

2. Flagrantly neglects to better his team by not signing or activating a full-time player if one does not exist on his active roster at a certain position.

3. Fails to acquire by some means the necessary transaction to fulfill a positional requirement left vacant by a player injury or demotion from MLB.

4. Plays a non-pitcher for seven (7) or more straight days while that player is either suspended or does not appear in a MLB game, unless the player's owner has pre-announced to the League his vacation from league activities, and the player's inactivity was not obvious until after the owner departed.

5. Expresses over the course of more than one season a general lack of competitiveness and has failed to seek the betterment of his team whatsoever.

The following acts are not to be considered examples of unsportsmanlike managerial conduct: the proliferation of false information to another owner, the giving of faulty or malicious advice to another owner, or the false presentation of business intentions to another owner.

All cases of unsportsmanlike managerial conduct as delineated above are subject to real money or organizational fines of a minimum of $15 (real) or $200,000 (organizational) to be levied by the Fining Board as described in Article VII.

If one owner believes another owner to be guilty of unsportsmanlike managerial conduct in any way not explicitly forbidden by the Constitution, he may accuse said owner of said crime. The accusation shall then fall under the review of the Fining Board, which shall decide by vote if the accused is guilty of such behavior. A unanimous guilty verdict shall then yield an assessment of an appropriate fine by the board, which may include the forfeiture of one or more draft picks. The minimum fine shall be $15 (real) or $200,000 (organizational) and the maximum fine shall never exceed the offending owner's winnings for the season(s) of the offense, if any exist, or $5,000,000 in organizational penalties. The fine may not be vetoed by the commissioner, but if the accused owner wishes to appeal the verdict of the Board, his case shall be made subject to an open vote of the league, with himself and the board abstaining. A 2/3 majority shall be needed to overrule the Board's verdict. Should the offending owner choose to appeal the amount and/or content of the fine, he may do so as he would any other. If, upon the appeal vote, the accused owner is still found guilty of unsportsmanlike managerial conduct, the fine shall be increased by 20% of its initial value.

XXIII. Transition Period

By the 1st of November 2005, all outstanding debts for seasons up to 2007 must be paid.

By the 15^th of November 2005, each league member shall have submitted to the commissioner’s office the beginnings of his organization’s 40-man roster. The 40-man roster need not be complete at this point and may be added to before Opening Day, but serves to protect players from the initial Rule 5 Draft. Any player added to the 40-man roster specifically to avoid selection in the Rule 5 Draft is guaranteed to receive either a transitional contract or arbitration for the 2006 season. Any organization failing to submit a list of protected players to the commissioner’s office on time will be fined $100,000 per day late.

On the 21^st of November 2005, the initial Rule 5 Draft will begin. During the draft, no organization may add players to its 40-man roster. Normal Rule 5 Draft rules apply, except that no player who has made his JFBL debut is eligible to be drafted.

By the 1^st of December 2005, each league member shall have submitted to the commissioner’s office a list of all currently owned low-minor-league level players whom the organization wishes to protect during the offseason. All protected players are guaranteed to receive a contract of some type for the 2006 season. At this point, all unprotected players who have not yet made their JFBL debut are granted free agency. Any organization failing to submit a list of protected low-minor-league level players to the commissioner’s office by the 1^st of December 2005 will be fined $100,000 per day until submission.

On the 5^th of December 2005, the initial Minor League Draft will begin. Normal Minor League Draft rules apply, except that no player who has made his JFBL debut is eligible to be drafted.

By the 24^th of December 2005, each league member shall have submitted a final list of protected players for his entire organization. All other players are granted free agency. At this point, all protected players must receive a contract of some type for the 2006 season, with the exception of recent minor-league draftees. If an owned player has made his JFBL debut, he must be on his organization’s 40-man roster.

By the 29^th of December 2005, any protected or recently drafted player may be signed by his organization to a standardized transitional contract for a period of up to ten years. League members may sign their respective players to the following transitional contracts: one year for $1.6 million per year; two years for $2.8 million per year; three years for $4.6 million per year; four years for $7.2 million per year; five years for $9.4 million per year; six years for $11.2 million per year; seven years for $11.2 million per year; eight years for $10.6 million per year; nine years for $10.0 million per year; or ten years for $10.0 million per year. All players that receive transitional contracts will begin the 2006 season on the 40-man roster. All transitional contracts are guaranteed and must be paid by Opening Day each season. Contracts must be paid out in equal annual installments. Transitional contracts may not include an option year.

All protected players who are on the 40-man roster but not offered a transitional contract must be offered arbitration. The arbitration year in which the player begins depends on when he made his JFBL debut. A player who debuted in 2005 may enter his second season of arbitration; a player who debuted in 2004 may enter his third season of arbitration; a player who debuted in 2003 may enter his fourth season of arbitration; a player who debuted in 2002 may enter his fifth season of arbitration; and a player who debuted in 2001 may enter his sixth and final season of arbitration. If a player has never played in the JFBL but begins 2006 on a 40-man roster, then 2006 will be his first year of arbitration.

The first free agency signing period will open on the 1^st of January 2006.

XXIV. League Pot

The League Pot is a collection of all real money league fines and any additional revenue created by the League. The League Pot will be used to finance any league-sponsored events, such as the annual winter meetings.

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2006