What does it mean to purchase a players minor league contract?

Answer 1

The term 'purchase a player's minor league contract' comes from the days before the major league teams controlled the minor league teams.

Minor league teams used to be independent entities that had no affliation with a major league team. They negotiated their player's contracts and paid their salaries. The players were employees of the minor league team. If a major league team wanted a player from the minors to be on their team they would have to negotiate a purchase price with the minor league team's owner.

Today, even though they play in the minors, a minor leaguer is an employee of the major league team. The major league team negotiates the minor leaguer's contract and pays their salary. The minor league team owner pays team expenses. If a major league team wants a minor leaguer in their system to come up to their team, they simply tell the minor league owner that they are going to 'call up' the player. That player will be replaced by another player in the system.

So the term 'purchase the contract' is not really accurate in today's game.

Answer 2

Honestly, I don't understand why the word 'purchase' is used because the major league club pays the salaries of all their minor league players. It would seem to me instead of saying 'purchased the minor league contract' they would say 'signed to a major league contract'. Regardless, this is done because a minor league contract would not be valid in the major leagues. First of all the player will be paid more for being in the majors so that is one consideration. Second, there is a reserve clause in minor league contracts that states that the team 'reserves the rights' to the player's services after the season ends. The reserve clause is invalid in major league contracts. So the minor league contract becomes null and void and the player signs a new contract to play in the majors.