You Don’t Need A Name To Be Traded: Valuing Minor-League Prospects

Abstract

When a trade is reported on the sports ticker, the acronym PTBNL often accompanies the running scroll. The abbreviation stands for “Player To Be Named Later;” which means one club has agreed to give up one or more players now in return for another player who will switch teams at a later date. A player-to-be-named-later is an IOU issued by a club that allows its trading partner to select an individual from a pre-determined list of players to complete a trade. This gives a club an opportunity to scout players with whom it is unfamiliar, and thus lessens the risk of doing a deal. A player-to-be-named-later can be included in a trade as long as the deal is consummated within six months and the player has never played in the league he’s moving to. It’s this last requirement that makes most players-to-be-named-later minor leaguers.