Welcome Guest [Log In] [Register]
Welcome to Die Hard Baseball. We hope you enjoy your visit.


You're currently viewing our forum as a guest. This means you are limited to certain areas of the board and there are some features you can't use. If you join our community, you'll be able to access member-only sections, and use many member-only features such as customizing your profile, sending personal messages, and voting in polls. Registration is simple, fast, and completely free.


Join our community!


If you're already a member please log in to your account to access all of our features:

Username:   Password:
Add Reply
Free Agent Compensation
Topic Started: Jul 23 2008, 12:50 PM (177 Views)
TheHugeUnit
Come on CC
Admin
Here's a reminder of how free agent compensation works in baseball, with Adam Dunn as the example.

The Reds have the choice of offering Dunn arbitration after the season. If Dunn accepts, the Reds get him for '09 at a salary determined by the arbitration process. He's earning $13MM in '08 and having a typical year, so the process would result in an even higher salary for '09. (Occasionally a player accepts arbitration when the team didn't expect him to, like Greg Maddux and the Braves in '02.) If the Reds don't offer Dunn arbitration, he becomes a free agent and the Reds get nothing.

A player can either be classified as Type A, Type B, or nothing based on his stats from the previous two seasons. Dunn should rank as a Type A since the classification formula looks at PA, AVG, OBP, HR, and RBI for 1Bs, OFs, and DHs (4 out of 5 ain't bad for Dunn).

If the Reds offer Dunn arbitration, he may decline because he prefers to play elsewhere or prefers to seek a multiyear free agent contract. If he declines the Reds' offer and signs elsewhere, the Reds will receive two draft picks.

Let's say the Yankees sign Dunn. The Reds will then receive one '09 draft pick from the Yankees. If the Yankees have, say, the 22nd overall pick next June, the Reds get that in addition to their own normal first round pick. The Reds also get a supplemental draft pick squeezed in between the first and second round of the draft.

The Reds only get the Yankees' first-round pick if it falls between #16-30. The first 15 picks are protected. So if the Nationals sign Dunn, the Reds are kind of screwed because they do not get the Nats' #2 overall pick. Instead, they get the Nats' second round pick and the supplemental pick.

A free agent can also be classified as a Type B based on his stats from 2007-08. This might happen with Jon Garland. Say the Angels offer him arbitration and he declines and then signs with the Dodgers. The Dodgers would not give up any draft picks, but the Angels would get an extra pick between the first and second round.

Third possibility - the free agent is not classified as Type A or B, and there is no draft pick compensation.

Over the years, many quality players have been drafted as the result of free agent compensation. Recent examples include Conor Jackson, Jarrod Saltalamacchia, Glen Perkins, Huston Street, Phil Hughes, Clay Buchholz, Jacoby Ellsbury, Joba Chamberlain, Colby Rasmus, and Ian Kennedy.

I owe most of my understanding of free agent compensation to ESPN's Keith Law. Check out his blog post on the topic from '06 as well as an MLBTR post about the ranking formulas based on info provided by Keith.


http://www.mlbtraderumors.com/

I thought this would be nice to post to show some of you how this works.
Posted Image
Posted Image
Click Here For a Pic of OESH BEAST Montero
oeshbach - on his Italians roots
 
not all italians shit their pants

Rockshu
 
I had a dream where I was playing RF for the Yankees against the Red Sox and Joe Torre was yelling at me in the outfield...Helloooooo erection
Offline Profile Quote Post Goto Top
 
Marlinschamps03
Gangsta
Elite Members
I've always been somewhat confused with this thing. At least this clears it up though.
Posted Image

Hanley Ramirez doesn't make errors--the ball is just afraid of him.
Shadez was the first man to walk on the moon... with sunglasses on.
In rookie ball, he drove a ball to deep centerfield, only to be informed he had been traded on his way to first base. So, he sprinted to the wall and robbed himself of a homerun.
He can turn a man to stone just by looking at him without his shades.
Was pointed at when Babe Ruth supposedly called his shot.
The June 24th game between the Marlins and Yankees was not, in fact, called by rain as was previously reported. Hanley had plans. And by plans we mean a date. With a girl. A babe if you will.
jaysdude
 
My mouth is a sperm bank
Offline Profile Quote Post Goto Top
 
Crushed Optimism
Member Avatar
hella fithy two oh sickness
Members
d00d were boutz ta git hellza pix frum vidro
Offline Profile Quote Post Goto Top
 
1 user reading this topic (1 Guest and 0 Anonymous)
« Previous Topic · MLB · Next Topic »
Add Reply