The Pirates and first-round draft pick Mark Appel did not agree on a signing bonus before today's 5 p.m. deadline.
Appel, a right-handed from Stanford, was considered by some to be the top pick in the draft, but fell to the Pirates at the eighth pick. The Pirates will receive the ninth pick in the 2013 draft as compensation for not signing him.
"Our final offer exceeded the available bonus pool money and was essentially up to the last dollar we could offer prior to falling into the second tier penalty which would have resulted in the loss of a first round draft selection, Pirates general manager Neal Huntington said in a statement. "While, as we have shown in past years, we are willing to be aggressive with our financial offer, we simply did not feel it was in the best interest of the organization to forfeit our first round selection in the 2013 amateur draft.
The Pirates may not use the $2.9 million assigned to Appel's slot on other bonuses and instead lose that money.