What is the MLB Rule 5 Draft, and How Does the MLB Rule 5 Draft Process Work?

The MLB Rule 5 Draft passed a few months ago, so I figured I should look into this confusing part of team-building strategy. I already wrote an article on how arbitration works, so I guess this is kind of becoming a series of exploring tricky baseball topics that trip a lot of people up.

What is the MLB Rule 5 Draft?
The MLB Rule 5 Draft is a yearly event where teams can select players who are not on other teams' 40-man rosters.

Who's Eligible to be Selected in the MLB Rule 5 Draft?
Players signed at age 18 or younger need to be added to their club's 40-Man Roster within five seasons or they become eligible for the Rule 5 Draft. Players who signed at age 19 or older need to be protected within four seasons.

What Happens to the Player After he is Selected in the Rule 5 Draft?
After a player is selected in the Rule 5 draft, they must be added to the drafting team's 26-man roster and remain on the active roster for the entire following season. They can be placed on the injured list.

Can You Option Your Rule 5 Draft Player Back to the Minor Leagues?
You must place the player on outright waivers in order to be removed from the 26-man roster. If the player clears waivers, he must be offered back to his previous team for $50,000 and can be outrighted to the Minors only if his original club does not wish to take him back.

Can You Trade Your Rule 5 Draft Player?
Yes, Rule 5 players can be traded, but the Rule 5 restrictions follow the player to their new team.

Are There Two Phases of the MLB Rule 5 Draft, and If So What Are They?
Yes, there are two phases of the MLB Rule 5 Draft: the Major League phase and the Minor League phase. The Major League phase allows teams to select players not on an MLB 40-man roster while the Minor League phase involves selecting players from the Triple-A who are also unprotected.

Do You Have to Pay to Select Someone in the MLB Rule 5 Draft?
Yes, teams must pay $100,000 to the club that they selected the player from to select a player in the Major League phase of the Rule 5 Draft. In the MiLB phase, teams must pay $24,500 to select a player.

Does Every Team Have to Select a Player in the MLB Rule 5 Draft?
No, teams are not required to make a selection in the MLB Rule 5 Draft. They can just pass if they do not want to pick any players.

What is the Picking Order for the MLB Rule 5 Draft?
The picking order for the MLB Rule 5 Draft is reverse order of the season’s standings (worst to best).

Thanks for reading!