Incentive Bonus Plan

Incentive bonus plan (the “IBP”) is a standard plan that a team will usually include as part of a player’s contract upon request. Under the IBP, the player obtains a bonus once he hits the 90-day active mark in a single season at AA ($1,000), AAA ($1,500), and the Major Leagues ($5,000). Thus, a player can receive $7,500 under the IBP.  When a player receives money under either the IBP or the College Scholarship Plan, however, that money is deducted from the other plan. For example, if a player receives $5,000 for a semester of school under the College Scholarship Plan, once a player uses that $5,000, it will be deducted from the $7,500 that is available under the IBP, leaving only $2,500 under the IBP.