Originally written on Pirates Prospects  |  Last updated 10/23/14
Last year the Collective Bargaining Agreement introduced some changes to the free agent compensation system. The system was overhauled, drastically reducing the amount of compensation picks that would be awarded. Here were the key changes: **Previously there were Type A and Type B free agents. A player was eligible for compensation if a team tendered them an offer of arbitration, giving them a raise on their previous year’s salary. Now teams have to tender an offer of $12-13 M to get compensation for a player. **Previously teams would get two compensation picks for a Type A pick. Those picks would come from the signing team and from MLB in the compensation round. Now teams only get one pick, which comes in the compensation round from MLB. The signing team still loses a pick. **The top 15 picks in the draft were protected under the old system. The new system only protects the top 10 picks. **Under the old system you got a draft pick if you tendered an offer to an eligible player, no ...
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