(CBS) The Cubs have signed first-round draft pick Kyle Schwarber for $3.125 million, according to MLB.com beat writer Carrie Muskat, which is significantly below the slot value for the No. 4 overall pick.

At that value, the Cubs saved nearly $1.5 million in their pool of bonus money, according to MLB.com senior writer Jim Callis, which can now be used to further entice other draftees that they want to sign.

[tweet https://twitter.com/jimcallisMLB/status/476760014145982464 width=”340″]

Under MLB’s draft system, teams only have an alloted pool of money to spend, with each pick in the draft getting a “slot” value. If a team signs a player under his slot value, they can use that money to sign other players over slot value.

In the Cubs’ situation, they drafted several high-upside high school pitchers who are committed to colleges and may be difficult to sign, and that extra money could go toward them.

The 21-year-old Schwarber, a catcher/outfielder, was considered the top collegiate hitter in the draft after posting a slash line of .358/.464/.659 with 14 homers and 48 RBIs last season at Indiana. He will report to short-season Single-A Boise, which opens its year Friday.

Watch & Listen LIVE