What to Do When Your First Signing Bonus Check Hits Your Bank Account

Welcome to "Ahead in the Count," presented by BIP Wealth. Our Baseball Division combines their collegiate and professional baseball playing experience with financial acumen to provide expertise in life on and off the field. We aim to give ballplayers and their families a better understanding about their unique lifestyle, the opportunities that come from playing this game, and insight into the complex financial world. This is "Ahead in the Count," hosted by Nolan Alexander, from BIP Wealth.

The 2026 MLB Draft class is officially getting paid. In this episode of Ahead in the Count, host Nolan Alexander sits down with former professional ballplayers and BIP Wealth advisors John Hester and Jeremy Hermida to break down exactly what happens when that first signing bonus payment lands in a rookie's bank account — and what smart, disciplined planning looks like in the weeks and months that follow.

From signing bonus tax withholding rates to agent fees, off-season training expenses, and the classic "first phone call" about buying a new truck, this conversation is a practical playbook for first-year pro baseball players navigating the biggest financial moment of their young careers.

• Signing bonus tax withholding explained: why teams withhold 22% on amounts under $1 million and 37% on amounts over $1 million — and why that's not the same as what a player actually owes
• The gap between withholding and actual tax liability, which can run six figures depending on the player's total signing bonus
• Agent fees: the other major deduction that comes out almost immediately after a signing bonus payment
• Budgeting for the first pro off-season, including training facility costs, travel, and the difference between players living at home versus supporting themselves independently
• How high school draftees and college draftees approach their first bonus differently, including the impact of NIL earnings for college players
• The "first phone call" conversation — why buying a truck or car is often the first big financial decision a new pro makes, and how advisors help players make that decision responsibly
• Planning around the second bonus installment and the extended timeline to full tax resolution, which can stretch into the following year's April filing deadline
• Building long-term financial maturity so a signing bonus becomes a foundation for the future rather than a short-term windfall

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