MLB teams that gained or lost draft picks via qualifying offer free agents

Now that Marcell Ozuna has signed, all 10 of the players who were issued a one-year, $17.8M qualifying offer in November have settled on teams for the 2020 season.  Of that group, two (Jose Abreu of the White Sox and Jake Odorizzi of the Twins) accepted their qualifying offers and returned to their clubs — Abreu, in fact, topped off his QO by signing a contract extension that will run through the 2022 season.  Stephen Strasburg also isn’t changing uniforms, as the longtime Nationals ace rejected the club’s qualifying offer but eventually re-signed with Washington on a seven-year, $245M deal.

That leaves us with seven QO players who will be playing on new teams in 2020, and as such, the draft compensation attached to those seven players has also now been allotted.  Under the rules of the Collective Bargaining Agreement, the same compensation was handed out to all six teams who lost those players, as the entire sextet fell under the same financial criteria.  The Mets, Cardinals, Braves, Giants, Nationals, and Astros all aren’t revenue-sharing recipients, nor did they exceed the luxury tax threshold in 2019, so all six teams will receive a compensatory draft pick between Competitive Balance Round B and the third round of the 2020 draft.

Here is how the so-called “Compensation Round” breaks down.  The order of the picks is determined by the worst record-to-best record from the 2019 season.

68. Giants (for Madison Bumgarner)
69. Giants (for Will Smith)
70. Mets (for Zack Wheeler)
71. Cardinals (for Marcell Ozuna)
72. Nationals (for Anthony Rendon)
73. Braves (for Josh Donaldson)
74. Astros (for Gerrit Cole)

San Francisco now possesses five of the first 87 picks in next June’s draft.  With the Giants still in the NL wild card race last summer, president of baseball operations Farhan Zaidi opted to hang onto Bumgarner and Smith rather than trade either player, a decision that led to some criticism since San Francisco was widely considered to be closer to rebuilding than truly contending.  The critics’ judgement grew even harsher after the Giants went 22-32 record in August and September and fell well short of the postseason.  Still, given that teams were reluctant to part with top-flight young talent for even controllable players (let alone rentals like Bumgarner and Smith) at the trade deadline, Zaidi clearly felt that the two picks he could recoup from the qualifying offer process were more valuable than anything offered for the two Giants pitchers last July.

It’s worth noting that the 74th overall pick will be Houston’s first selection of the 2020 draft after the Astros lost both their first- and second-highest selections in both 2020 and 2021 as part of their punishment for the sign-stealing scandal.  Since the Red Sox are also under league investigation for their own alleged use of electronics to steal opponents’ signs in 2018, Boston could also potentially lose at least one pick in this year’s draft, so we can’t yet say that the 2020 draft order is finalized.  Of course, the order could be further muddled if more trades occur involving picks from the two Competitive Balance Draft rounds, which are the only types of draft picks that can be traded.  We’ve already seen the Rays and Cardinals swap their picks in Rounds A and B as part of the multi-player trade that sent Jose Martinez and Randy Arozarena to Tampa Bay earlier this month.

Let’s now look at the six teams who signed the seven QO-rejecting free agents, and see what those clubs had to give up in order to make the signings.

Yankees, for signing Gerrit Cole: Since New York exceeded the luxury tax threshold in 2019, they gave up their second- and fifth-round picks in the 2020 draft (a.k.a. their second- and fifth-highest selections).  The Yankees also gave up $1M in funds from their international signing bonus pool.

Diamondbacks, for signing Madison Bumgarner: As a team that didn’t exceed the luxury tax threshold and was a revenue-sharing recipient, the D’Backs had to give up their third-highest draft choice to sign Bumgarner.  This ended up being Arizona’s second-round selection — the team’s first two picks are their first-rounder (18th overall) and their pick in Competitive Balance Round A (33rd overall).

Twins, for signing Josh Donaldson: Minnesota also received revenue-sharing and didn’t exceed the luxury tax threshold, so signing Donaldson put the Twins in position to give up their third-highest draft selection.  However, the Twins are actually giving up their fourth-highest pick in the 2020 draft, which is their third-round selection.  The Twins’ actual third selection is their pick in Competitive Balance Round B, but those picks aren’t eligible to be forfeited as compensation for QO free agent signings.

Angels, for signing Anthony Rendon: Since the Halos didn’t receive revenue-sharing funds and also didn’t pay any luxury tax money, they had to give up their second-highest draft pick (their second-rounder) and $500K in international bonus funds to sign Rendon.

Phillies, for signing Zack Wheeler: The Phillies surrendered their second-highest selection (their second-round pick) and $500K of their international bonus pool since they were another team that didn’t exceed the luxury tax line and didn’t receive revenue-sharing money.

Braves, for signing Will Smith and Marcell Ozuna: The dual signings put Atlanta in line for a dual penalty.  The Braves didn’t exceed the luxury tax threshold and also didn’t receive revenue-sharing money, so they gave up their second-highest draft pick (their second-rounder) and $500K of international bonus money for Smith.  In landing Ozuna, the Braves then had to also forfeit their third-round pick (their third-highest selection) and another $500K from their international bonus pool.

Losing two draft picks and $1M in international pool money isn’t anything, though these particular sanctions had less impact on the Braves than on other teams, which undoubtedly influenced their decisions.  First of all, the compensatory pick Atlanta received for Donaldson is higher in the draft order than their third-round pick, so the net loss is only a second-round pick.  Secondly, the Braves’ movement in the international market is still limited by the punishment handed out by Major League Baseball in November 2017 for Atlanta’s past international signing violations.  Part of that punishment included the Braves’ pool for the 2020-21 international market being reduced by 50 percent — being so handcuffed in the international market anyway, the Braves probably felt $1M in pool money was no great loss.