I have been propagating an error regarding how free agent compensation and penalties work. Let’s take a minute a fix that.
The Atlanta Braves should have some cash to spend this coming off-season, and it’s entirely possible that they are gearing up to consider doing just that, having just hired a new Assistant General Manager and Director of Player Personnel.
But I had erroneously been saying that teams in the category of the Braves – supposedly a ‘larger revenue’ club – would be better off with a Top 10 draft pick for next year.
Under the old system, that was true: teams with a Top 10 draft pick have that pick protected. If a club signs a free agent that received a Qualifying Offer from his old team, the receiving club normally forfeits their first overall draft pick. However, if that pick was a Top 10, the forfeiture happened with the next pick.
With the new Collective Bargaining Agreement, that has changed. And it got complicated.
Let’s divvy up the answer a bit to explain it better:
The Player
This year, the Qualifying Offer level will be roughly $18.1 million for a single year contract. Not bad coin.
A player can be the recipient of a QO if (all of these):
- He’s never been offered one before
- He’s been on the roster of his club for the entire season
- The club dares to offer him $18.1 million
Qualifying Offers must be extended to players from their current team within 5 days after the end of the World Series.
Once offered, the player has 10 days to accept or reject the offer. If he accepts, he signs for that $18.1 million. Otherwise, he’s a free agent.