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Draft Pick Compensation Newsbeat

Wednesday, November 08, 2017

SI: How Are Teams Compensated for Losing a Free Agent?

MLB introduced the qualifying offer back in 2012 to replace its old free-agent compensation system in which teams were gifted draft picks based on a calculus that divided players into two pools, Type A (the top 20% available) and Type B (the top 21–40%). But in the latest CBA, the qualifying offer was overhauled. Before, signing teams would have to forfeit their highest draft pick (unless they were in the top 10 of the draft) to the player’s old club. Now, things are a little more complicated.

Apparently it only affects signing one of nine players. Plus there’s a luxury tax element that affects four teams.


 

 

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