The MLB Draft is a complex process that involves more than just selecting players. Teams also receive compensation for losing players in free agency. This compensation can come in the form of draft picks or money.
Draft Pick Compensation
Losing Players in Free Agency
When a team loses a player to free agency, they are awarded draft pick compensation. The value of the pick depends on the player's performance and years of service.
Type I Free Agents
Type I free agents are players with at least ten years of major league service, including six with their current team. They receive the highest level of draft pick compensation. The team that loses a Type I free agent receives a first-round pick and a second-round pick in the following draft.
Type II Free Agents
Type II free agents are players with at least six years of major league service, including three with their current team. They receive a lower level of draft pick compensation. The team that loses a Type II free agent receives a compensation pick after the first round.
Qualifying Offer
Teams can offer a qualifying offer to their impending free agents. This offer is a one-year contract at a predetermined amount. If the player rejects the offer, the team receives a first-round pick and a second-round pick in the following draft.
Sign-Steal Compensation
Teams are also eligible for compensation if a player signs with another team before they are eligible to be drafted. This is known as "sign-stealing."
Underclassman Signing
Teams can receive compensation for underclassmen (players with less than three years of college experience) who sign with other teams. The compensation for underclassmen is a draft pick or a combination of draft picks and money.
International Free Agents
Teams can also receive compensation for international free agents who sign with other teams. The compensation for international free agents is a draft pick or a combination of draft picks and money.
Draft Order and Compensation
Pick Swapping
The draft order can change due to compensation. For example, if a team loses a Type I free agent, they will have a lower pick in the first round.
Pick Value
The value of a compensation pick varies depending on where it is placed in the draft. Picks in the first round are more valuable than picks in the later rounds.
Conclusion
MLB draft compensation is a complex system that can impact the draft order and the value of draft picks. It's important for fans and teams to understand how this system works to stay informed about the draft and its impact on the game.