Prospect Promotion Incentive: Explaining PPI Rules, Quirks & More
Image credit: (Photo by Ronald Martinez/Getty Images)
Baseball fans might see references to PPI—or the Prospect Promotion Incentive—on their social media timelines around Opening Day and again in September.
If the concept of the Prospect Promotion Incentive is new to you, then you have come to the right place. Consider this post to be your one-stop shop for PPI rules, procedures and quirks.
Even if you’re a PPI veteran, you might find this document to be a valuable reference, because there are many ins and outs of the process, and we seemingly learn a new PPI wrinkle each season.
What Is PPI?
The Prospect Promotion Incentive rewards teams for carrying top prospects on Opening Day rosters and keeping them in the major leagues all season as rookies. The PPI initiative was introduced as part of the 2022 Collective Bargaining Agreement between MLB and the players’ union.
A qualifying prospect who factors for a major award will outfit his club with a draft pick after the first round in the next draft. PPI picks have ranged from No. 29 to No. 32 overall in the 2023 and 2024 drafts, carrying bonus pool values of between roughly $2.8 million and $2.9 million.
A team acquires a draft pick after the first round if a PPI-eligible player:
• Wins the AL or NL Rookie of the Year
• Places top three for the AL or NL MVP before qualifying for arbitration
• Places top three for the AL or NL Cy Young Award before qualifying for arbitration
There is a limit of one PPI pick per organization per year, and a player may qualify his club for a PPI pick only once.
Who Is Eligible For PPI?
To qualify for PPI, a player must meet criteria pertaining to his rookie eligibility, prospect status and service time as a rookie.
Rookie status: At the commencement of a season, a player must retain rookie eligibility, while also having 60 or fewer days of career major league service. This includes time on the MLB active roster and injured list.
A player is considered a rookie so long as he does not exceed the following thresholds:
• 130 career at-bats
• 50 career innings
• 45 career days on an active MLB roster
Note that players can go right up to those thresholds and still qualify as a rookie. They must not exceed them.
Prospect pedigree: To qualify for potential PPI eligibility, a player must appear on two of three preseason Top 100 Prospects rankings by Baseball America, ESPN and MLB.com.
Service time as rookies: Any player who meets the rookie eligibility and prospect pedigree criteria must then accrue a full year of MLB service as a rookie. That requires spending at least 172 out of the 186 days of a championship season on the major league roster or injured list.
This is typically achieved by a player making the Opening Day roster, but teams have some wiggle room. A player can spend about two weeks in the minor leagues prior to being called up and still reach 172 service days.
Similarly, a prospect who is on the 40-man roster may be optioned to the minor leagues and still have that time counted as major league service. An optional assignment lasting no more than 20 days is automatically converted to MLB service.
Are There Exceptions To PPI Eligibility?
In baseball, there are always exceptions to the rule.
Some accomplished rookies are ineligible for PPI, even if they might seem like ideal candidates.
Foreign professionals: Rookies classified as “foreign professionals” by MLB are not eligible for PPI. A foreign professional is a player who is at least 25 years old and has played as a professional in a foreign league—typically in Japan, Korea or Cuba—for a minimum of six seasons before signing with an MLB organization.
This covers Shota Imanaga, Yoshinobu Yamamoto and Jung-Hoo Lee in 2024, as it did Kodai Senga and Masataka Yoshida in 2023. These players are more akin to major league free agents than traditional prospects.
Contract extensions: Any player who signs a contract prior to making his MLB debut that covers more than one season is ineligible. Pre-debut contract extensions nullified PPI eligibility for the Brewers’ Jackson Chourio and the Tigers’ Colt Keith in 2024.
Trades: A player traded during his debut season negates his PPI eligibility. In 2022, the Padres called up MacKenzie Gore early enough to make PPI eligibility a possibility. San Diego traded Gore to the Nationals that August as part of the Juan Soto blockbuster, which detached his PPI potential.
Players traded in the offseason retain the potential for PPI, as the Cubs’ Michael Busch and the Brewers’ Joey Ortiz illustrated in 2024. Players traded prior to making their MLB debuts also qualify, as was the case with Shane Baz and Joe Ryan.
Application of retroactive service: A PPI-eligible player who finishes first or second for AL or NL Rookie of the Year is awarded a full year of MLB service, no matter his callup date. But players who accrue one year of service by this method are ineligible for PPI.
In 2022, Braves outfielder Michael Harris II won National League ROY despite not making his MLB debut until May 28 of that season. He was retroactively awarded a full year of MLB service for winning the award.
The same one year of service was applied for American League ROY runners-up Adley Rutschman (2022) and Tanner Bibee (2023), neither of whom made his club’s Opening Day roster.
Despite the retroactive application of one year of MLB service for these rookies, none of them had PPI eligibility attached.
Which Players Have Qualified For PPI Eligibility?
The rookie class of 2022 was the first subject to its rules. Mariners outfielder Julio Rodriguez met the PPI requirements, won AL Rookie of the Year and bestowed the Mariners with the first-ever PPI draft pick in 2023.
Orioles shortstop Gunnar Henderson and D-backs outfielder Corbin Carroll won ROY awards in 2023 and afforded Baltimore and Arizona PPI draft picks in 2024.
The leading 2024 rookies who have the potential to yield PPI draft picks in 2025 if they win Rookie of the Year awards are Padres outfielder Jackson Merrill in the NL and Orioles outfielder Colton Cowser in the AL.
Who Are The Players Drafted With PPI Picks?
At total of three PPI picks have been made in draft history. The 2023 draft was the first eligible to have PPI picks slotted after the first round.
2023 draft
29. Mariners: Jonny Farmelo, OF, Westfield HS, Chantilly, Va.
2024 draft
31. D-backs: Ryan Waldschmidt, OF, Kentucky
32. Orioles: Griff O’Ferrall, SS, Virginia
Why Was PPI Introduced?
In its negotiations for the 2022 Collective Bargaining Agreement, the MLB Players Association sought a mechanism to suppress or eliminate the practice of service time manipulation by MLB teams.
Manipulating the service of young players impacts their earning power, especially in the long term. A player spending as little as two weeks on the farm prior to his initial callup extends the terms of club control by a season. To wit, a team that limits a rookie to 171 service days or fewer increases its years of control from six seasons to seven.
From the club’s perspective, two weeks without a rookie in April translates to one additional year of club control.
From the player’s perspective, the ultimate impact is felt when they qualify for arbitration and then free agency one year later than they would have had they made the Opening Day roster.
To address service time manipulation, MLB and the MLBPA ultimately settled on the Prospect Promotion Incentive, which includes a provision that rewards players for a first- or second-place finish in Rookie of the Year voting with with one year of MLB service, regardless of when they were called up.
The PPI initiative and ROY provision are designed to incentivize teams to carry prospects on Opening Day rosters, rather than suppress MLB service time by sending them to the minor leagues for a few weeks in April.
In practice, it works as both an incentive and disincentive.
Incentive: Carrying an eligible prospect on Opening Day can yield a valuable draft pick if he wins Rookie of the Year in his first season or places top three for MVP or Cy Young in his second or third season.
PPI also has created a dynamic in which teams have tended to call up top ROY contenders the previous summer to gain valuable experience. Teams only need to be mindful of rookie playing time thresholds and the limit of 45 days of active service.
This places the target rookie callup date in mid August. In 2024 that date was Aug. 16. Players called up on this date or later to make their MLB debuts could not surpass 45 days of service and thus retain their rookie eligibility for 2025.
Disincentive: A team that waits too long to call up a PPI-eligible player who is a Rookie of the Year-caliber prospect will be charged one year of service for a partial year of production. This is because a first- or second-place finish for ROY automatically triggers one year of service.
As noted, this has affected Michael Harris II and Adley Rutschman in 2022 and Tanner Bibee in 2023. Their teams were charged a full year of service for partial seasons from the players.
This will also likely affect the Pirates in 2024. Paul Skenes is a strong candidate to win or place second for NL Rookie of the Year, but because he cannot reach 172 service days based on his May 11 callup date, Pittsburgh is ineligible for a PPI pick.
Which Players Have Added PPI Eligibility?
The 2024 season marks the third in which rookie classes have been subject to PPI considerations. A total of 34 rookies in those three seasons have added PPI eligibility. The number of PPI-eligible players has risen in each season, from nine in 2022, to 11 in 2023, to 14 in 2024.
In three instances, a PPI-eligible player has outfitted a PPI draft pick via a Rookie of the Year win. Jackson Merrill and Colton Cowser could add to that total with ROY wins in 2024.
If Bobby Witt Jr. places first, second or third for American League MVP in 2024, his final season with PPI eligibility, then the Royals will add a draft pick in 2025. He would become the first player to win a PPI pick for his team by a method other than a Rookie of the Year win.
A player picks up PPI eligibility as a rookie and, generally speaking, has continuing eligibility for two subsequent seasons. PPI eligibility ends when a player satisfies an award finish requirement or he reaches arbitration.
Rookie Class Of 2022
Shane Baz, RHP, Rays
Hunter Greene, RHP, Reds
Nick Lodolo, LHP, Reds
Jeremy Peña, SS, Astros
Geraldo Perdomo, SS, D-backs
Julio Rodriguez, OF, Mariners*
Joe Ryan, RHP, Twins
Bryson Stott, SS, Phillies
Bobby Witt Jr., SS, Royals
* Rodriguez won AL Rookie of the Year, ending his PPI eligibility and earning the Mariners the No. 29 pick in the 2023 draft.
Rookie Class Of 2023
Francisco Alvarez, C, Mets
Hunter Brown, RHP, Astros
Corbin Carroll, OF, D-backs*
Triston Casas, 1B, Red Sox
Cade Cavalli, RHP, Nationals (full season on injured list)
Gunnar Henderson, SS, Orioles*
Josh Jung, 3B, Rangers
Logan O’Hoppe, C, Angels
Ezequiel Tovar, SS, Rockies
Anthony Volpe, SS, Yankees
Ken Waldichuk, LHP, Athletics
* Carroll won NL Rookie of the Year and Henderson won AL Rookie of the Year, ending the players’ PPI eligibility and earning the D-backs and Orioles the Nos. 31 and 32 picks in the 2024 draft.
Rookie Class Of 2024
Michael Busch, 1B, Cubs
Evan Carter, OF, Rangers
Colton Cowser, OF, Orioles
Kyle Harrison, LHP, Giants
Jared Jones, RHP, Pirates
Wyatt Langford, OF, Rangers
Ronny Mauricio, 2B, Mets (full season on injured list)
Jackson Merrill, OF, Padres
Joey Ortiz, 3B, Brewers
Ceddanne Rafaela, OF/SS, Red Sox
Brayan Rocchio, SS, Guardians
Nolan Schanuel, 1B, Angels
Masyn Winn, SS, Cardinals
Austin Wells, C, Yankees
Quirks Of PPI Qualification Rules
Many PPI qualification rules are straightforward, but a few quirks in the system enliven the process.
In rare cases, players can be rookie eligible but PPI ineligible
The Yankees called up 20-year-old outfielder Jasson Dominguez on Sept. 1, 2023. Nine days later, he sustained an elbow injury that required Tommy John surgery. The Yankees placed him on the major league injured list.
Because he finished 2023 on the major league IL, he began the 2024 season there as he continued his rehab from TJ surgery. The Yankees reinstated him from the 60-day IL on June 12.
Players gain MLB service while on the major league IL, meaning that Dominguez accrued roughly 77 service days in 2024 while on the IL. Added to his roughly 30 days in 2023, Dominguez already had more than 100 days of MLB service when the Yankees reinstated and optioned him to Triple-A on June 12.
Because he has not exceeded the rookie thresholds of 130 career at-bats or 45 days of active service, Dominguez remains rookie eligible as he heads into 2025. But he won’t be able to pick up PPI eligibility because he is far over the threshold of 60 service days.
Dominguez is not the first player tripped up by the 60-day rule.
Twins third baseman Royce Lewis turned in an outstanding rookie season in 2023, but he was not PPI eligible because he blew past 60 service days while on the Twins’ injured list in 2022.
It was a similar story for Angels lefthander Reid Detmers in 2022 and Marlins righthander Max Meyer in 2024. Those pitchers had rookie eligibility but too much prior MLB service while on the IL to qualify for PPI eligibility.
Players who do not spend a single day on the active roster can be PPI eligible
Nationals righthander Cade Cavalli illustrates the other side of the coin when it comes to extended injured list stays.
Cavalli made his MLB debut on Aug. 26, 2022. He appeared in one game before suffering from shoulder inflammation and finishing the season on the major league injured list.
He returned for 2023 spring training but tore his elbow ligament and had Tommy John surgery during spring training. He missed the entire season.
But because Cavalli was a qualified Top 100 Prospect who retained rookie status, all he had to do was remain on Washington’s IL for the entire 2023 season in order to satisfy the 172 service days requirement.
He did just that and added PPI eligibility as a result—without appearing in so much as a minor league rehab game.
A similar case played out with Mets second baseman Ronny Mauricio in 2024.
The Mets called up Mauricio on Sept. 1, 2023. He played regularly for a month and was expected to be a key Mets rookie in 2024. Instead, Mauricio tore the ACL in his knee while playing in the Dominican League in the offseason.
Mauricio had knee reconstruction surgery and spent the entire 2024 season on the major league injured list. That afforded him the 172 service days required for PPI eligibility to attach.
Players do not need to make Opening Day rosters to be PPI eligible
While PPI language strongly associates a prospect’s eligibility with making the Opening Day roster, players can satisfy the 172 service days requirement even if they begin the season in the minor leagues.
They just can’t remain on the farm for long.
In 2022, Reds lefthander Nick Lodolo and Padres lefthander MacKenzie Gore began their seasons at Triple-A but were called up within two weeks of Opening Day. This kept them on track to spend at least 172 out of the season’s 186 days in the major leagues.
Gore’s PPI eligibility was later nullified by his in-season trade to the Nationals, but Lodolo picked up PPI eligibility.
In 2023, the Mets optioned catcher Francisco Alvarez to Triple-A to open the season, but an injury forced New York to quickly recall him on April 7. Because Alvarez’s optional assignment did not last at least 20 days, his Triple-A time was converted to major league service.
Alvarez stayed in the big leagues for the remainder of the 2023 season as a 21-year-old catcher, thus picking up PPI eligibility.
The Orioles attempted to set up second baseman Jackson Holliday with PPI eligibility in 2024, but he struggled so badly out of the gate that he required a lengthy optional assignment to Triple-A.
Baltimore did not carry the 20-year-old Holliday on its Opening Day roster, instead calling him up on April 10. That left him enough time to reach 172 service days as a rookie—in theory.
But after Holliday went 2-for-34 with 18 strikeouts in 10 games, the Orioles demoted him to Triple-A. Once his optional assignment surpassed 20 days—in fact, he stayed down for more than 90—he could no longer reach 172 days in the big leagues in 2024.
The Orioles called Holliday back up on July 31, following an injury to Jordan Westburg. His future remains bright, but that future will not include PPI eligibility.
