When one gets outbid for a minor league free agent, what is the next bidding progression? I can’t seem to give a bonus or increase the minor-league salary. Is a major league contract the next level at a minimum 327K?

You can offer a minor league contract with a spring training invite, which is basically a slight level up that could give you the edge against a team offering a simple minor league deal. Above that, yes, you would want to offer a major league minimum contract to be the top bidder over other teams offering any kind of minor league deal. It's not uncommon for a decent minor leaguer to get blocked at AAA and eventually become a free agent, and sometimes these guys get legit ML deals depending on how valuable they are to other teams.

Salary basically doesn't matter for minor-league free agents. Yes, you can offer a major-league deal, but why would you do that for a true minor-leaguer (not a prospect)? A spring training invite is the only incentive you can add -- you cannot increase the salary or add a bonus. The AI weighs all the offers and generally the team with less depth at the free agent's position will get the player.

Thanks Dummer, Prezuiwf
the depth thing was what I was missing. Didn’t realize that was a factor.