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Draft Compensation For 8 Teams That Could Lose Qualified Free Agents

By Steve Adams | November 12, 2019 at 5:50am CDT

Eight teams issued qualifying offers this year to ten players, with the Nationals and Giants handing out two apiece. Teams issuing the $17.8MM offer must be comfortable with the receiving player accepting, as it isn’t possible to trade such a player (absent consent) until the middle of the season. But in most cases, the offer is given with the expectation it will be declined, thus allowing the issuing team to receive a compensatory draft selection if the player signs with a new club.

As with draft forfeitures, draft compensation is largely tied to the financial status of the team losing the player. And in 2019, seven of the eight teams that issued qualifying offers fall into the same bucket: teams that neither exceeded the luxury threshold nor received revenue-sharing benefits. This applies to the Astros, Nationals, Giants, Mets, Cardinals, White Sox and Braves. In such cases, the default compensation for losing a qualified free agent is applied.

In other words, if any of Gerrit Cole, Stephen Strasburg, Anthony Rendon, Madison Bumgarner, Will Smith, Zack Wheeler, Marcell Ozuna, Jose Abreu or Josh Donaldson signs with a new club, their former team will receive a compensatory pick between Competitive Balance Round B and Round 3 of the 2020 draft. Those selections would likely fall in the upper 70s and low 80s. Slot values in that range of the 2019 draft checked in between $730K and $700K. The Nationals and Giants, then, could add a pair of Top 100 picks and roughly $1.5MM worth of additional pool money each if they lose both of their qualified free agents.

The lone team that stands to gain a potential pick at the end of the first round would be the Twins, who issued a qualifying offer to Jake Odorizzi. Minnesota is a revenue-sharing recipient that did not exceed the luxury threshold, thus entitling the Twins to the highest level of free-agent compensation possible … if Odorizzi signs for a guaranteed $50MM or more. If Odorizzi’s total guarantees are $49.9MM or lower, the Twins would receive the same level of pick as the other seven teams who issued qualifying offers: between Competitive Balance Round B and Round 3.

Of course, if any of the players who received qualifying offers either accept the offer or re-sign with their 2019 clubs on a new multi-year deal, no draft compensation will be awarded to that team at all.

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Atlanta Braves Chicago White Sox Houston Astros MLBTR Originals Minnesota Twins New York Mets San Francisco Giants St. Louis Cardinals Washington Nationals Anthony Rendon Gerrit Cole Jake Odorizzi Josh Donaldson Madison Bumgarner Marcell Ozuna Stephen Strasburg Will Smith Zack Wheeler

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View Comments (37)
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37 Comments

  1. sf2win

    6 years ago

    I have utter confidence that Zaidi can find gold with any measure of free money (draft pick). But I also believe that players lose confidence in their leaders when their value is so openly tied quantitative aspects. Faith is hard to qualify – sometimes the dividends are great, sometimes not. Bumgarner seems to be someone, I personally, would bet on. Others wouldn’t, of course. I’ll be fascinated by the outcomes of these actions.

    Reply
    • MrStealYoBase

      6 years ago

      English, Brad. Do you speak it?

      1
      Reply
      • Al Jab

        6 years ago

        I understand it, maybe you should have stayed in school

        Reply
  2. DarkSide830

    6 years ago

    what a garbage system.

    Reply
    • Ejemp2006

      6 years ago

      It’s better than the NBA where stars hold the league hostage so they can jump to the hottest market mid contract.

      2
      Reply
      • ChiSoxCity

        6 years ago

        Partially true. NBA players no longer care about markets because of branding. But player movement in the NBA has become a joke. Only a few teams in each conference are watchable thanks to player collusion.

        2
        Reply
        • monymgr

          6 years ago

          SAD, But True !!

          Reply
        • keyser_soze

          6 years ago

          Yea… too bad the Bulls aren’t watchable. Now I see your issues. Your team stinks

          1
          Reply
      • PopeMarley

        6 years ago

        The NBA FA signings happen extremely fast, and it draws more interest. NBA stars don’t jump mid contract.

        4
        Reply
        • steelerbravenation

          6 years ago

          Tell that to Anthony Davis & Russel Westbrook they both left mid contract

          1
          Reply
        • keyser_soze

          6 years ago

          They didn’t LEAVE, they were traded. Also, their former teams got pretty well compensated.

          3
          Reply
        • Eightball611

          6 years ago

          Etc…NBA & mlb are no tje same. The new cbs may help change a lot however owner are not dumb…they will find a way to save & win

          Reply
        • PopeMarley

          6 years ago

          @steelerbravenation..Neither one of them moved on their own, because they were traded. Again players don’t move on their own in the NBA, unless released and have the window to sign with another team, and free agency of course.

          5
          Reply
        • turner9

          6 years ago

          Unfortunately that’s not correct.

          Yes they were traded. But not willingly by the team.

          Especially in the case of Davis.

          NBA stars (stars not bench players) fully dictate their movement even while under contract.

          Kawhi essentially broke up the OKC thunder and he was a FA.

          He held 2 teams hostage (LAC and TOR) saying he would sign with the first one who swung a trade for his friend Paul George.

          He even told Toronto he wouldn’t come back unless they got both George and Westbrook

          Davis flat out said trade me or I walk.

          Westbrook wanted no part of OKC after george was traded.

          NBA players certainly control their movement even while under contract and more so as FA.

          It’s the only league that allows this kind of nonsense

          3
          Reply
        • Sky14

          6 years ago

          NBA players force the issue. Davis, George and Butler are obvious recent examples of this. None of the teams wanted to give up the player.

          1
          Reply
        • PopeMarley

          6 years ago

          You post “Unfortunately that’s not correct” then you totally flip flop by saying “Yes they were traded”. Players can whine, and demand, but it’s the team that makes the decision. Players as free agents in any sport can recruit who they want, but it’s the teams that make the trades and extra signings. In no way did you prove a player can move on their own mid contract like the original poster @Ejemp2006 claimed.

          4
          Reply
        • purplewidow

          6 years ago

          Lolololol… yeah teams make the trades but the players are demanding. Don’t tell me different because that is BS. Teams don’t want players who don’t want to play for them.. stars especially create more drama then they are worth on teams they don’t want to play for. Coaching drama whatever it may be when a star player is pissed they demand a trade and they get traded. Obviously they need the teams consent but the team almost always moves them because their attitude is detrimental to the team. You can sugar coat it anyway you want and point to technicalities like the team has to make the decision and not the player but we all know the player is forcing the issue and doing everything on their side to me it happen.

          Reply
        • keyser_soze

          6 years ago

          The truth doesn’t need to be sugarcoated. Can you force your employer to give you a raise? Bottom line, teams can deny demands from players if they choose to. Players can’t make teams trade them.

          5
          Reply
        • GaryWarriorsRedSoxx

          6 years ago

          Steelerbravennation, Anthony Davis was traded one with one year left on his deal.. that’s a common occurrence because teams Don’t Want to Lose a Guy for nothing. Happens all the time.

          The Thunder wanted to get out of Westbrook’s huge contract because they’re going nowhere for a couple of years. They got lucky and received a lot of talent back for Paul George but moving Westbrook mid-contract is beneficial for them.

          So I think you’re wrong. Teams trade guys because they want to. You know how many trade requests are not fulfilled because team will tell the guys shut up and play? I would guess A lot more than is reported.

          2
          Reply
        • PopeMarley

          6 years ago

          People who are wrong but want to try and prove their point raise their voices, and get extremely emotional. That is the equivalent of @purplewidow’s post.

          5
          Reply
        • PopeMarley

          6 years ago

          lolololol all you want Bruh, because it doesn’t make your point correct. Hell you proved mine in your first sentence.

          5
          Reply
      • DarkSide830

        6 years ago

        i dont see how that is what would happen if there was no comp system. baseball doesnt allow you to just get 3-4 great players together and win. players typically sign where the most money is, and dont just move to bad teams so that other FAs will follow and make the team great, and draft pick compensation has nothing to do with this.

        Reply
      • monymgr

        6 years ago

        It is called Greed !!

        Reply
  3. marlins17

    6 years ago

    I can’t find the article speaking to which pick each team would have to give up to sign a QO FA.

    Reply
    • jorge78

      6 years ago

      It’s there somewhere. Came out awhile back…..

      Reply
  4. Pingleja

    6 years ago

    i wonder if a team has ever negotiated with a top pick telling them they’d over pay in their signing bonus, essentially making them unpickable by the teams ahead of them. would make the comp picks worth more if they did stuff like that.

    Reply
    • Jeff Zanghi

      6 years ago

      What good would that do? If the player was drafted by another team ahead of them they’d be forced to either sign with that team or go back to college and wait another year to be drafted? And once they’re a college senior they essentially lose all negotiating leverage because the team that drafted them keeps their rights for years so long as they make them a minimum contract offer. Also a pick in the 70s/80s isn’t exactly a “top pick” that you could forecast/negotiate with ahead of the draft. I mean I’m sure there is some discussion with those types of players with potential teams — especially where there’s a player with the risk of choosing college over signing — but I just don’t see how what you’re talking about could ever occur.

      Reply
      • thinkblech

        6 years ago

        It happens all the time. If you draft a guy and fail to sign that pick, you lose the bonus pool money associated with that pick, lowering what you can spend, overall. It’s the only quantifiable leverage draftees have.

        Reply
        • kleppy12

          6 years ago

          You lose it for that year but you get a pick one spot lower in the next draft so it’s a short term hit but not really a big deal long term. Also, to the point of the original post teams could certainly do something like that and if that player falls to them they better pay him that or risk never having a player/agent trust you ever again. If you do sign the player you now have very little money to try and sign the rest of the guys you drafted so you better hit on that one or you’re screwed. that my friend is why teams don’t do that, because it would be a horrible idea.

          Reply
        • thinkblech

          6 years ago

          You also lose the year of development time, everything gets pushed out. And then, if the draft class is poorer, you may end up with a lower quality player as well. Teams are negotiating dollar values all throughout the draft, getting an idea, pick by pick, of what it would take to sign a potential draftee. Jack Leiter would have been a first rounder had he not floated a number that was through the roof.

          Reply
        • thinkblech

          6 years ago

          As for teams giving most of their money to one guy – the Mets just did that with Matthew Allan. Take a look at the bonuses of their first 10 rounders this past draft.

          Reply
    • TJECK109

      6 years ago

      Isn’t that what Scott boras does for a living? Finds nuggets like this. I mean the Pirates signed Pedro Alvarez after the draft only to have boras somehow get the deal renegotiated

      Reply
  5. thinkblech

    6 years ago

    Fangraphs and Baseball Prospectus put a pick value on these, it landed between $3 and $4 mil.

    Reply
  6. californiaangels

    6 years ago

    if a teams sign one of these players….what do they lose? ie Angels

    Reply
    • Jon429

      6 years ago

      Depends on the finances of the team. In the case of the Angels, who do not receive revenue sharing nor hit the luxury tax in 2019, the second highest draft pick is forfeited.

      Reply
  7. mike156

    6 years ago

    Insane how much attention is given to what happens to ten players–and how much attention was paid to it (at the expense of everything else) by the MLBPA in the last round of negotiations.

    1
    Reply
  8. CaptainHooks

    6 years ago

    If Jake Odorizzi turns down the Twins Qualifying Offer , the Twins could still pursue Hyun-Jin Ryu,, Dallas Keuchel, Cole Hamels and Julio Teheran to fill out the rotation on the Minnesota Twins.

    Reply

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