Free agent Cuban infielder Yoan Moncada has not yet been cleared to sign by the Office of Foreign Assets Control, but there is growing hope he will be allowed to sign within two weeks, reports Jeff Passan. Moncada has already established residency in Guatemala and has been declared a free agent by MLB. Once he gets OFAC clearance, he can officially sign a contract.

However, as Ben Badler and Jesse Sanchez report, MLB currently requires Cuban players to receive a “specific license” before signing, not a “general license.” The league has accepted general licenses in the past — Yasiel Puig signed using a general license — but they changed their policy within the last few years. According to Badler and Sanchez, Moncada already meets the requirements for a general license. If he has to wait for a specific license, forget about the two weeks thing.

Earlier this week, MLB sent each team a memo stating their policies remain the same. They still require players to receive a specific license, though they are working to OFAC to clarify whether a general license is sufficient. Here’s the memo, courtesy of Sanchez:

“MLB is aware that the Cuban Assets Control Regulations published by the U.S. Treasury on January 16, 2015, may affect the unblocking process for Cuban Players,” Major League Baseball said in a statement earlier in the day. “MLB has important questions regarding how the new regulations apply to the unique circumstances of Cuban Players based on our significant experience in this area, and our discussions with OFAC in prior years. MLB is committed to following the laws of the United States, and will not change its policy requiring that Cuban Players receive a specific OFAC unblocking license until it confirms with all relevant branches of our government, including OFAC, that any new approach is consistent with the law. We hope to receive clarity on this issue as quickly as possible.”

So anyway, this is a bunch of bureaucratic nonsense. MLB decided they wanted players to have the specific license a few years ago even though the OFAC’s policies say it isn’t necessary. Moncada doesn’t have the general license just yet but he does meet the requirements, so he could receive it at any moment. Hence the two weeks thing. But, since MLB wants the specific license, he may have to wait longer.

As far as the Yankees are concerned, the deadline for Moncada to be unblocked by the OFAC — in a way that satisfies MLB — is June 15th. (It really is sometime before that because the two sides need time to negotiate.) Because the Yankees exceeded their spending pool for the 2014-15 international signing period, they can’t sign a player for more than $300,000 during the 2015-16 and 2016-17 signing periods. If Moncada signs before June 15th, he’ll count towards the 2014-15 signing period and they can sign him for whatever they want. If not, he’ll count towards 2015-16 and $300,000 ain’t getting it done.

The expectation is that Moncada will receive a $30M to $40M bonus, which would smash the record for a player bound by the new international spending rules (Yoan Lopez, $8.25M). His bonus will be taxed at 100% no matter which team signs him because they will exceed their pool, so he’s a $60M to $80M investment. Moncada will be like any other young international amateur signing — he gets his bonus up front, then goes into the farm system as a non-40-man roster player. Once he reaches MLB, he’ll go through three pre-arbitration years and three arbitration years like everyone else.

By all accounts, the 19-year-old Moncada is a budding star, a switch-hitter with power and speed and high-end athleticism. The Yankees had him in for a private workout at some point recently, as did the Red Sox, Dodgers, Padres, Giants, Rangers and Brewers, according to Sanchez. The Rays, Cubs, Phillies, and Cardinals also have interest in Moncada, though it’s worth noting the Cubs exceeded their spending pool last year and would need Moncada to wait until after July 2nd — the start of the 2015-16 signing period — to sign him.

The Yankees are considered the “heavy favorites” to sign Moncada even though they haven’t signed a big name Cuban player since Jose Contreras. Moncada’s talent is obvious — assuming the scouting reports are accurate, of course — and since he’s still only 19, he’s a potential franchise cornerstone type of player. And there’s also plenty of time for his development to veer off course as well. That’s the reality of the situation. At this point, I’m just ready for this whole thing to be over. I have Moncada (and Cuban player in general) fatigue.

According to Ben Balder, the Yankees recently held a private workout for free agent Cuban infielder Yoan Moncada. It’s unclear when the workout was held, but it has already happened. Moncada is in the process of showcasing himself for teams and Badler says he’s already had a private workout for the Giants as well.

Moncada, 19, is the latest prized free agent to come out of Cuba, and all reports indicate he is a potential star with five-tool ability. The Yankees have brought several other Cuban players in for private workouts, including Rusney Castillo and Aledmys Diaz last year, so this isn’t unusual at all. Getting an up close look at the player is pretty standard.

Badler recently wrote that, once signed, Moncada would slot in as one of the top 20 prospects in all of baseball with a good chance of being considered a top 15 or even top ten prospect. Here’s more on the situation from Badler:

From conversations with several industry sources, the Yankees are one of the frontrunners to sign Moncada, who has residency in Guatemala and is a free agent, though Major League Baseball won’t let him sign until he receives a specific unblocking license from the Office of Foreign Assets Control (OFAC). While the young Latin American talent in the organization is promising, the Yankees are light on young, impact position players. Moncada, a 19-year-old switch-hitter who would likely slot it at second or third base, would immediately change that, and slot in as the Yankees’ top prospect if he ended up signing with them.

Since the Yankees blew their international spending pool out of the water last summer, they will not be able to sign a player for more than $300,000 during the 2015-16 and 2016-17 signing periods. That won’t be enough to sign Moncada, who is expected to command a $30M to $40M bonus. (Whichever team signs him would then be taxed 100% for exceeding their pool).

For the Yankees to have a shot at landing Moncada, he needs to be unblocked by the OFAC before the end of the current signing period of June 15th. Actually, he needs to sign by that date, so he needs to be unblocked well before that so the two sides have time to negotiate. MLB has already declared Moncada a free agent, so they’ve done their part. This is all out of the Yankees’ hands. They’re waiting on the government to give him the okay.

The hype around these Cuban players has gotten out of control these last few years, though, by all accounts, Moncada is a future cornerstone player along the lines of Yasiel Puig and Jose Abreu, not a complementary player (Yoenis Cespedes or Alexei Ramirez) or worse (Dayan Viciedo). Given his age and potential, the Yankees should clearly be serious about signing him. It’s just a question of whether he’ll be cleared by the OFAC in time.

Update (12:23pm): Moncada has been declared a free agent by MLB, according to Jesse Sanchez. He must still be unblocked by the Office of Foreign Assets Control before he can sign, however. No word on when that may happen. The important thing is that it appears Moncada will be cleared to sign well before June 15th and count towards the 2014-15 international signing period, putting the Yankees in great position to sign him, as explained below.

10:00am: Highly touted Cuban infielder Yoan Moncada held a showcase event for scouts in Guatemala on Wednesday, and the Yankees had a “significant” presence of at least four scouts in attendance, according to Ben Badler and Jonathan Mayo. Every club was there but apparently some were are serious than others. Badler says Moncada took several rounds of batting practice and fielded balls at different positions. “After a long day and a lot of swings so scouts could see him from both sides of the plate, he did seem to wear down,” added Badler.

Moncada still has to be unblocked by the Office of Foreign Assets Control and declared a free agent by MLB before he is eligible to sign, which could still be months away. Because he is only 19 and has limited experience in the Cuban leagues, Moncada will be subject to the international spending restrictions. The Yankees exceeded their 2014-15 spending pool and will not be able to sign a player for more than $300k during the 2015-16 and 2016-17 signing periods, but if Moncada is declared a free agent by June 15th, he would count towards the 2014-15 signing period and the Yankees would be able to sign him for any amount. Here are some more notes:

• “Moncada had a great workout, showing his five-tool potential. He is in great shape. Unfortunately, he was not able to hit off live game pitching. We will need to see him off of live pitching to command the top dollars they are looking for,” said one scout to Mayo. On the 20-80 scouting scale, Moncada received 60s for his hit, power, and arm tools, a 70 for speed, and 50 for fielding. That’s five average or better tools.
• Moncada is expected to receive a bonus in the $30M to $40M range, according to Jeff Passan. Badler notes Moncada can only sign a minor league contract. Every team would exceed their spending pool with a bonus that size, so when you add in the 100% tax, it’s really a $60M to $80M total investment.
• In another piece, Badler says the Yankees have an advantage over other clubs because they’ve already exceeded their pool and are subject to bonus restrictions in the future. Other clubs have verbal agreements in place for the 2015-16 signing period worth seven figures, but if they sign Moncada, they would have to renege on those deals because they wouldn’t be allowed to hand out bonuses of more than $300k. Make sense?
• And finally, Kiley McDaniel has some more information on the showcase and Moncada’s background. Apparently the Cuban government gave him a visa and a passport and allowed him to leave the island, so there’s no crazy defection story. Also, Moncada’s agent is just some random public accountant from Florida, not one of the usual suspects. Make sure you check it out.

Moncada will hold more showcase events in the coming weeks and months — teams want to see him face live pitching — and I’m sure the Yankees will continue to have a “significant” presence at these events. The 100% tax is tough to swallow, but every team is facing that. The playing field in level in that regard. The Yankees are at an advantage because this is a simply bidding war — whoever is willing to spend the most will win, and the Bombers have more money than everyone.

Obviously Moncada presents a very special case, both in terms of his talent and signing situation. This isn’t someone like, say, Rusney Castillo or Yasmany Tomas, a toolsy player who is expected to be more of a solid regular than anything. Moncada is incredibly young and everyone agrees he has star potential. If you’re going to step out of your comfort zone and spend huge money on a Cuban player — something the Yankees have been very hesitant to do since Jose Contreras flopped — this is the type of player you do it for. Everything is lined up for the Yankees to spend big for Moncada and land a potential star. If they’re not going to do it now, then when?

According to Jesse Sanchez, 19-year-old Cuban infielder Yoan Moncada has established residency in Guatemala and has a showcase for MLB teams tentatively scheduled for next Wednesday. He must still be unblocked by the Office of Foreign Assets Control and declared a free agent by MLB before he can sign. That is still a few weeks away at this point.

Moncada doesn’t have a crazy defection story — Sanchez says he was granted his release from his team in Cuba, and the government gave him a visa and a passport so he can go to Central America. I don’t think I’ve ever heard that one before. Sanchez adds that the Yankees and all 29 other teams are expected to be at Moncada’s showcase because, unlike recent defectors Jose Fernandez and Andy Ibanez, he’s considered a potential star. Here’s some more from  Sanchez:

Scouts have called Moncada the next Jorge Soler and his skills have been matched up against Yasiel Puig’s at the same age. He once beat new Red Sox outfielder Rusney Castillo in a base running competition during the Serie Nacional all-star festivities in Cuba and his power has been compared to Cuban slugger Yasmany Tomas.

Moncada, who also plays shortstop and third base, starred for Cuba’s top team of 15- and 16-year-olds and made a name for himself at the U-16 IBAF World Baseball Championships in Mexico.

Back in August, Ben Badler said “there’s no player in Cuba with Moncada’s combination of youth, tools and hitting ability.” He hit .273/.365/.406 in 195 plate appearances in the Cuban league as an 18-year-old this past season after hitting .283/.414/.348 in 172 plate appearances as a 17-year-old last year. Moncada also tore up international tournaments these last few summers as well.

Because of his age and limited experience in Cuba, Moncada is subject to MLB’s international spending restrictions. That’s actually a good thing for the Yankees even though this summer’s spending spree means they will be unable to sign a player for more than $300,000 during both the 2015-16 and 2016-17 signing periods. Since he has already established residency, Moncada will likely be a declared a free agent before the end of the 2014-15 signing period on June 15th. The Yankees are well over their 2014-15 spending pool and can offer Moncada whatever they want, as long as they’re willing to pay the associated 100% tax.

Soler signed a nine-year contract worth $30M with the Cubs two years ago, though Moncada will likely sign for more due to inflation. (I’m not sure how the 100% tax works with multi-year contracts. It might only apply to the signing bonus.) I think any time a player this young is talked about as a future star — Keith Law also said he’s heard raves about Moncada, so that’s three sources hearing nothing but praise — the Yankees have to get involved, especially since the only cost is money. I can understand passing on 27-year-old Castillo or 24-year-old Tomas due to his swing-and-miss issues. But a 19-year-old potential star infielder? Moncada is the type of talent that is too rare to ignore.