Free Agent Compensation

Why dont they just call the supplemental first round, the second round?

Because not all teams get picks? Just the teams with picks from losing FAs.

Because it might be even weirder for teams not to have 2nd round picks but then have their 2nd natural pick in the 3rd round.

Thanks Tim

Please expand article to include situation where a team signs two type A free agents that were offered arbitration.

I believe the team gives up two draft picks, in the order that the free agents were signed???

Hypothetically, if the Orioles were to sign Teixeira and Burnett (and they were in the top 15 teams), they would give up a 2nd round pick and a 3rd round pick. 2nd goes to the team that lost the type A player first.

The lesson I get out of this is, if you are most losing teams 1-15, try to sign type A free agents. You get a built in discount.

Further, if you sign 1 type A free agent, try to sign more. The cost gets progressively less.

So what happens if a team (lets say the Yankees) sign two A-level free agents from different teams. Which team gets the Yankees' first-round pick?

I may be wrong, but I think it's for the higher valued player.

But if it's a pitcher and a hitter, than I have absolutely no clue how you would judge their value.

From Keith Law:

"If a team signs more than one Type A free agent, its picks are parceled out to the 'losing' clubs in an order determined by the ratings of the free agents the team signed."

oop, thank you.

What happens if a team with a pick from 16-30 signs two Type A free agents?

If you take a look at the Elias rankings:

http://www.usatoday.com/sports/baseball/al/2007-10-31-elias-rankings-complete_N.htm

Each player gets a numerical score within his grouping. So Raul Ibanez could be 84.557 while Francisco Rodriguez is 88.618.

Icedrake - I believe the team then loses third, fourth round picks if necessary.

If a team with a unprotected pick signs two type A players the team losing the better of these two players gets the first rounder and the second team gets the second rounder. I'm not for sure what happens if they were to sign a third since a third round pick and a 1a supplimental really isn't great compensation.

My personal favorite example of drafted players in exchange for lost FA is when the Mets got a pick for Mike Hampton leaving and they drafted David Wright. One of the worst moments in Braves history.

Tim,

Isn't the compenstation based on WHEN the class A/B free agent is signed?

I thought if a team waits until after a specified date (say December 31) to sign a class A or B free agent then they don't have to surrender picks?

i honestly think cc sabathia is going to resign with the brewers - he absolutly loves milwaukee and i think we r also goin to take first in the central too - right now we r 1 game behind the cubs and we r playin GREAT baseball - don't be surprised if the brewers go to the world series

Damn. I liked calling people idiots when they got this stuff wrong. And no fair giving everyone a cheat sheet! I read this section of the CBA to figure this stuff out because I didn't notice Law's blog post!

striker - signing date does not matter. There is a set deadline for offering players arbitration and a set deadline for players to either accept or decline (I believe both dates are in early/mid december, though a team can offer before their deadline).

There have certainly been some great players drafted as compensation picks. However, teams do sometimes get stuck with players they did not expect back. Maddux in 2002 is an example that didn't really hurt the team too much. But I think the Padres offered Barrett arbitration and the Astros offered Loretta arbitration hoping for draft picks, but got stuck with players they didn't really need.

Can anyone tell me why MLB does not allow teams to trade its draft picks?

i honestly think cc sabathia is going to resign with the brewers - he absolutly loves milwaukee

Posted by: brewersfan09

The whole two weeks he has been there? I'm willing to bet he loves money, more.

cmac1973- it's been a while since I looked at this, but my recollection is that the reason major league teams cannot trade their draft picks is the same as the NBA rule against trading away your first round pick two seasons in a row- you want to make sure a team doesn't get completely decimated by an incompetent (cheap) owner and/or GM. Not only can't teams trade their picks, they can't even trade the player they use the pick on for a year. Of course, it's pretty stupid since teams can sign free agents and lose their picks that way, which has the same affect, but what are you going to do.

What is even dumber is that the best players do not get drafted first in baseball, because of signability questions. Equally dumb- a team can only lose it's own picks from free agent signings. A few years ago, the Yankees signed three class A free agents (Farnsworth and Damon were two, can't remember the third), but because they let Tom Gordon go to the Phillies, they actually moved up in the first round of the draft!

So, if anyone from major league baseball is reading this, please make the following changes- initial rookie contracts should be pre-set based on draft position, teams should be allowed to trade their picks, free agent compensation picks can be taken from any pick the team owns, not just there own, and teams can only sign free agents if they actually have a pick to lose.

Okay, get on it.

Thanks Tim

This is actually a pretty good area for MLB to look at a test of trading picks. Perhaps trading the right to the compensation picks should factor in?

"Because not all teams get picks? Just the teams with picks from losing FAs."

So? Not everyone gets a pick in the first round (the ones who sign Type A's with a pick from 16-30)

Teams picking in the second round are getting effectively third-round quality players when all is said and done.

Still the same number of selections as every other round even though not every team gets to pick. They technically had a pick.

And regardless of that, someone picked at #70 is considered a second round pick...

I really think that it's just something the Player's Association came up with to artificially inflate draft salaries

Is there anything to prevent this?

Team A (Antelopes) has pick 15 in the draft (hence they would lose a 2nd rounder if they sign a type A FA)

Team B (Bears) have John Smith, who will become a type A free agent.

Antelopes, Bears, and Smith collude to do a sign and trade deal, such that:

- Bears offers Smith arbitration

- Smith declines

- Antelopes sign Smith as a type A free agent

- (Bears gain supplemental pick - #31 overall - plus the Antelopes' 2nd rounder)

- Antelopes trade Smith back to Bears. The Bears give up prospects roughly equivalent to the two picks the Bears got as compensation.

So Smith stays with the Bears, and the rest of the deal shakes out like this:

Antelopes get:
- Prospects

Bears get:
- Pick 31 (supplemental pick that is created out of thin air by MLB)

- Antelopes 2nd rounder

Smith gets:
- Something favorable in his contract (no trade clause?)

Essentially, the Antelopes have traded their 2nd rounder to the Bears for the prospects ... but the kicker is that more than half the value is coming from the supplemental pick (since it is earlier than the pick the Antelopes forfeited) - essentially, the two teams have conspired to defraud the other 28 teams (by pushing everyone's second round pick back by one pick)

Clearly, the collusion would not be in the best interests of baseball, but it could be difficult to prove if several months passed between the signing and the trade.

But is there anything in the free agency compensation rules to prevent this from occurring?

You can't trade a player that you just sign, unless it is a 1 yr deal on a flier e.g. milton bradley. and a type A free agent would never agree to a one year deal. creative thinking though!

Question, the limit of type A free agents is 3, right? and if you lose a couple(2) type A/B free agents yourself, the limit would be 5? Too lazy to look it up

"the "losing" team can receive draft pick compensation without offering arbitration if their free agent is signed before December 1st. "

the "losing team" being.... what exactly?