New CBA - Free Agent compensation?

[jorgenswest]

As we have debated the trading of Liriano, part of the discussion is always possible compensation. Amongst us the terms of the new CBA are not clear.

 

Do we get one or two picks if we offer Liriano around 12.5 million for 1 year?

 

Does the signing team lose a pick?

 

Would we likely lose a pick if we chose to go after a top pitcher on the market?

 

Should we trade Liriano, can the new team get compensation if he leaves in free agency?

 

I thought the answers were 2, yes, yes and no based on http://mlb.sbnation.com/2011/11/23/2581637/major-league-baseball-cba-labor-agreement

 

The Elias free-agent rankings system is dead. Free-agent compensation is not. In order for a team to receive compensation for losing a free agent, that free agent must have played with the team all season. After the year, the team must offer the free agent a one-year contract worth the average of the 125 highest salaries. If that free agent signs with another team, the other team will give up its first-round pick, unless it picks in the top ten, in which case it will give up its second-round pick. The original team will also gain a supplemental pick between the first and second rounds. In the event that there are multiple such picks, the teams will draft in reverse order of winning percentage.

 

This seems to be in conflict with http://mlb.mlb.com/news/article.jsp?ymd=20111122&content_id=26026776

 

• The current compensation system for losing "Type A" and "Type B" free agents will be eliminated. Under the new system, teams will receive compensation for losing a free agent only if they offer -- and the player rejects -- a guaranteed one-year contract equal to the average salary of the league's 125 highest-paid players. Compensation for losing such players will consist of one draft pick at the end of the first round.

• When clubs sign a compensation-eligible player, they will forfeit their own first-round selection, or their second-round selection if they pick in the top 10

If it is one pick for Liriano instead of two, I would be more inclined to trade him now. There is also value to a team trading for him. If they trade and sign, they will not lose a pick. If they sign a top pitcher in the winter, they will lose a pick.

[SweetOne69]

They both say the same thing but in different ways. They both say you get 1 comp pick between the 1st and 2nd rounds plus the signing teams 1st round pick (unless they pick in the top 10 then you will get a 2nd round pick).

[amjgt]

I agree that the 2nd version doesn't explicitly say that the team that lost the player GETS the 1st round pick from the team that signed the player, but I think that's a logical thing to infer.

[amjgt]

One interesting thing would be how that effects your draft "allowance"

 

I know that the team getting the supplemental pick adds to it's "allowance" and I assume that if a team receives a pick from another team that the allowance would transfer.

 

But if that's not how it works there could be some interesting games to be played.

[East Coast Twin]

They both say the same thing but in different ways. They both say you get 1 comp pick between the 1st and 2nd rounds plus the signing teams 1st round pick (unless they pick in the top 10 then you will get a 2nd round pick).

The CBA states the acquiring team forfeits it's first round pick, but does not state that the former team receives that pick. The former team receives a pick in the supplemental first round.

 

This is the relevant portion of the CBA

 

(4) Compensation

 

…

 

( Former Club. The former Club of a Qualified Free Agent subject to compensation shall receive an amateur draft choice (“Special Draft Choice”) in the next Rule 4 Draft. …with the selections beginningimmediately following the last regular selection in the first round of Rule 4 Draft… .

 

© Signing Club.

i. A Club that signs one Qualified Free Agent who is subject to compensation shall forfeit its highest available selection in the next Rule 4 Draft. … [A] Club shall not be required to forfeit a selection in the top ten of the first round of the Rule 4 Draft, and its highest available selection shall be deemed its first selection following the tenth selection of the first round.

[James]

One interesting thing would be how that effects your draft "allowance"

 

I know that the team getting the supplemental pick adds to it's "allowance" and I assume that if a team receives a pick from another team that the allowance would transfer.

 

But if that's not how it works there could be some interesting games to be played.

The additional pick from the other team would add to the bonus pool. How much money a team receives for it's bonus pool is determined by adding up all the recommended bonuses for the first ten rounds for the draft picks that the team has. The total is the bonus pool. That total isn't added up until all drafting positions have been determined.

 

The section dealing with draft compensation for players receiving a qualifying offer occurs before the new draft rule parts in the agreement, so it would be safe to assume that additional picks received from free agent compensation would be added to the bonus pool.

 

Here's a link to the changes:

 

http://mlb.mlb.com/mlb/downloads/2011_CBA.pdf

 

And here's a link to the full CBA (keep in mind that it is 300 pages long):

 

http://mlb.mlb.com/pa/pdf/cba_english.pdf

[SweetOne69]

The CBA states the acquiring team forfeits it's first round pick, but does not state that the former team receives that pick. The former team receives a pick in the supplemental first round.

 

If the former teams doesn't get the forfeited pick, where does it go? I highly doubt that the pick disappears, it has to go somewhere and the logical choice is to the former team.

[diehardtwinsfan]

I should note that if Cisco was traded, the receiving team could offer him arb, but there's no first round pick loss should he choose not to accept.

[East Coast Twin]

If the former teams doesn't get the forfeited pick, where does it go? I highly doubt that the pick disappears, it has to go somewhere and the logical choice is to the former team.

If they intended the former team to receive that pick, the CBA language would have been written differently - eg, "The former team shall also receive the acquiring team's . . . ." They also would have made that language part of "( Former Team" instead of making it a separate section.

 

The fact that they did not state that the former team would receive the acquiring team's pick was intentional.