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eMailbag: Free Agent Compensation
By Mike Nichols - Oct 30, 2007 5:35 pm

A reader of MetsBlog recently sent in the following email…

“Hey, any chance you might have a post on how free agent compensation works.”

…free agent compensation is one of the most confusing parts of the off-season, but fortunately there are many resources out there that help explain it…

Last November, Keith Law, at his blog for ESPN.com, posted a terrific primer regarding free agent compensation and how it works under the new collective bargaining agreement.

Here is a quick rundown on free agent compensation using information collected from the above Law post, Major League Baseball’s 2007 – 2011 Collective Bargaining Agreement, MLB Trade Rumors and Cot’s Baseball Contracts:

  • Free agents are grouped into three types of players; Type A, Type B and Unclassified.
  • Type A players comprise of players in the top 20 percent of their positions. A team that signs a Type A player must give its top draft pick to the team that is losing the player. The team that lost the player also receives a supplemental pick between the first and second rounds. However, if the signing team has a draft pick in the first half of the first round (picks 1-15), their first round pick is protected and would then surrender their next highest draft pick.
  • Type B players comprise of players in the top 21-40 percent of their positions. Any team that loses a Type B players receives a supplemental pick, but the signing team does not lose any picks.
  • Any team who loses an unclassified player is not subject to any compensation.
  • The formula to determine player types, which is not widely known, is comprised of several factors, including statistical analysis of the players previous two seasons, and players are grouped into the following positional categories: 1B/DH/OF, 2B/SS/3B, C, SP, and RP.
  • In order for the former team of a free agent to receive compensation for losing a player to free agency, the player must sign with another team before December 2 or the team must have offered the player arbitration before December 1.
  • If a team signs multiple free agents from within the same category, the team loses picks in order of the highest-ranked players.
  • Teams are limited to the number of Type A and Type B free agents they can sign, which is determined by the number of free agents available. Example: If there are less than 14 Type A or B free agents, no one team can sign more than one Type A or B free agent. According to Law, last season there were approximately 93 Type A or B free agents, who filed for free agency, which left the per-team quota at eight.

…is the room spinning…

…as you can see a lot goes into free agent compensation…i would imagine this is one of the many determining factors that come in play for all mlb gms, including Omar Minaya…and in case you are wondering, if the Mets sign a type a free agent, they have the 22nd pick in the first round of next season’s first-year player draft…on the flip side if the buzz concerning Tom Glavine and the Braves comes to fruition, the Mets would receive the Braves first rounder, which is the 18th pick…

…seriously, is the room spinning yet…

12 Responses to “eMailbag: Free Agent Compensation”

  1. applehat says:

    Off topic- although unlikely, I hope Freddie mandates that we go back to two uniforms (white at home- with blue hats, gray on the road- with blue hats and please ditch the cheesy multi-colored batting helmets). 1995 called and wants its black unis back.

    • Hit The Weights Zeile says:

      im all for going back to the 80s jersey with the racing stripe, like they wore the night of the 20th aniv of the 1986 team. just make it a button down instead of the pullover style i thought they looked pretty cool.

  2. pochemunyet says:

    DITCH THE UGLY BLACK.

    Gimme the ‘86 blue and orange!

    • tonylett says:

      Amen !
      Road jerseys are one thing BUT Pinstripes and
      Blue caps at Home ONLY ! Please Omar,
      right this wrong !

  3. jose--jose-jose-jose says:

    I’d love to get the 18th overall pick for glavine.

    …and yes, I’m still very bitter.

    • JefJarrett says:

      In order for the former team of a free agent to receive compensation for losing a player to free agency, the player must sign with another team before December 2 or the team must have offered the player arbitration before December 1.

      We aren’t going to offer arbitration, and he won’t sign before December 2……..

      • Hit The Weights Zeile says:

        the braves arent stupid theyll sign him on december 3rd at the stroke of midnight.

    • InsaneMetsFan says:

      I’s give the Braves our 22nd pick if the sign Glavine before Omar has a brain fart and signs Glavine for the Mets.

      Don’t get me started on bitter.

  4. BobbyK says:

    Tom Galvine for a first round pick (number 18?) do it NOW! I’ll drive him to the airport to make sure he’s not in the backseat of a Cab!

    • JefJarrett says:

      See my post above….there will be no way he signs before Dec 2…..and we won’t be offering him arbitration because 1. The Wilpons wouldn’t do that to him, because I’m sure they had an agreement….. and 2. He could always accept it, and we would be responsible for him for another year with a decent raise.

    • tonylett says:

      I’d offer my trunk for extra safety !

      OR

      Tie him to the roof, Deer style .

  5. [...] Posted by AUAlum06 what is the difference in types for FAs? excuse my ignorance on this one eMailbag: Free Agent Compensation | MetsBlog.comType A players comprise of players in the top 20 percent of their positions. A team that signs a [...]