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Draft Pick Compensation for Signing Qualified-Offer FAs

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https://www.mlb.com/news/mlb-qualifying-off...ned/c-259650658

 

Because the White Sox were neither a luxury tax penalized team, nor a revenue sharing team, the following would apply to any FAs the white sox sign that declined a qualifying offer:

 

• A team that neither exceeded the luxury tax in the preceding season nor receives revenue sharing will lose its second-highest selection in the following year's Draft, as well as $500,000 from its international bonus pool for the upcoming signing period. If it signs two such players, it will also forfeit its third-highest remaining pick.

 

The 50 million compensation threshold affects the team that extended the qualifying offer and lost the player, not the signing team.

 

Under the new rules, if the team that loses the free agent is a revenue-sharing recipient, based on its revenues and market size, then the selection -- if and only if the lost player signs for at least $50 million -- will be awarded a pick between the first round and Competitive Balance Round A of the 2018 MLB Draft. If the player signs for less than $50 million, the compensation pick for those teams would come after Competitive Balance Round B, which follows the second round.

 

The following 16 teams currently qualify for these picks: A's, Astros, Braves, Brewers, D-backs, Indians, Mariners, Marlins, Orioles, Padres, Pirates, Rays, Reds, Rockies, Royals and Twins.

 

If the team that loses the player does not receive revenue sharing and did not exceed the luxury-tax salary threshold the previous season, its compensatory pick will come after Competitive Balance Round B. The value of the player's contract doesn't matter in this case. The nine clubs that fall into this category are the Angels, Blue Jays, Cardinals, Cubs, Mets, Phillies, Rangers, Red Sox and White Sox.

So these new rules that were designed to entice teams to sign players with compensation attached actually made it less enticing for the White Sox this year. The 1st round pick would've been protected anyway, so they would still give up a second rounder but now they also lose international money too.

Out of curiosity, is there a date where draft pick compensation no longer applies? Like opening day or May 1st, etc. ....?

  • Author
QUOTE (Sarava @ Feb 20, 2018 -> 09:17 PM)
Out of curiosity, is there a date where draft pick compensation no longer applies? Like opening day or May 1st, etc. ....?

 

Pretty sure it’s after the draft when the protection is removed, big part of the season.

Used to be either May 1st or 15th.

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