Report: Type-B Free Agent Compensation Likely To Be Eliminated

The Larry Rothschild Effect
Report: New CBA to include hard cap for international signings

Update (4:30pm on 11/16/11): Sherman corrected himself today, and there will in fact be Type-B free agent compensation this offseason. It’s almost certainly going to be eliminated going forward, but the rules will not change this winter. The Yankees will still received a supplemental first round pick for Freddy Garcia if they offer him arbitration and he signs elsewhere.

Original (4:30pm on 11/15/11):
Via Joel Sherman, baseball’s new Collective Bargaining Agreement is likely to eliminate Type-B free agent compensation this offseason according to a pair of executives familiar with the negotiations. Type-A compensation will be unchanged for top tier free agents (Jose Reyes, Prince Fielder, etc.), though some tinkering may be done to help the lower ranked players (Octavio Dotel, Kelly Johnson, etc.).

Freddy Garcia is a Type-B free agent, so the Yankees will lose out on a draft pick if the system is indeed changed and he signs elsewhere. On the bright side, they wouldn’t have to offer him arbitration to secure the potential pick, so there’s no worry about him possibly accepting and receiving a salary they club would be uncomfortable with next season. The new CBA has not yet been announced, but the clubs have been kept abreast of potential free agent compensation changes so they move forward with their offseason plans. The current deal expires on December 11th, but the new one should be wrapped up before the end of November.

Under the current system, clubs receive the signing team’s first round pick plus a supplemental first rounder in exchange for losing a Type-A. Type-B’s return just the supplemental first rounder. The up-to-date 2012 draft order can be found here.

The Larry Rothschild Effect
Report: New CBA to include hard cap for international signings
  • mattdamonwayans

    I don’t see how this helps unless they do away with Type B and make Type A more difficult to acquire.

  • Mark

    Would have kept type B’s, but just made Type A guys have to have an elite score, like Reyes, Prince, Pujuls, etc…

  • Karl Krawfid

    Yankees rarely offer Arbitration anyway.

    • Don W

      The Yankees don’t offer arbitration to players that would be dramatically overpaid if the player accepts it. Abreu, Matsui etc.

  • Steve (different one)

    What does this accomplish? Who is making the concession here? I don’t get it, the players want the system changed because Type A status reduces salaries for lower toer fa’s. Type B status doesn’t really mean anything.

  • RetroRob

    There has to be more to this. The Type A free-agent status for non-elite players (and really we’re talking relief pitchers here) is where the problem existed. Be interested to see if there are changes along that front.

    • Genghis

      Firing Elias, and replacing with them with monkeys that can count beyond eleven, would help quite a bit.

      • Jesse


        The Elias Rankings are terrible. For pitchers they account wins, win percentage, and saves. And altogether they don’t account any of the advanced statistics such as FIP, xFIP, WAR, wOBA, etc.

        • Steve (different one)

          MLB determines the formulas, Elias is just the accountant

          • Jesse

            Even better. Those guys at MLB are most definitely up with the times in terms of statistics.

  • Genghis

    Getting rid of type B’s simplifies things–trying to decide whether or not to offer arbitration based on whether a team thought the guy would pass and the team would get compensation was an arbitrary gamble. A player should get offered arb if the team wants to keep him– no other reason.

    • JAG

      …unless they keep Type As, which causes the exact same problem. I guess it’s a little mitigated when the free agents are the elite ones like Pujols and Fielder, but there’s still the argument for offering arb to get the pick.

  • UYF1950

    I would contend that at least this year getting rid of the compensation for Type B players may benefit the Yankees. Perhaps they can go after a “better” option Type B player without the concern of giving up a draft choice. Buehrle comes to mind. I believe he is a Type B.

    • Steve (different one)

      But you don’t give up anything today for signing a type B

  • viridiana

    If there is any way for Selig to stick it to the Yankees, he manages to find it. Yanks potentially lose sandwich pick. They would not lose pick in any case if they sign B free agent. His pets in Boston also gain with cntinued Type A compensation as they’ve lost Paps and could let Ortiz go.

  • Gonzo

    There is more to this. Sounds like the want to help out the lower level Type-A players. I hope they do.

  • IB6 UB9

    Draft pick compensation should only exist for teams losing a player they drafted/signed/developed. Unless a player had rookie eligibility with your team, no picks.

    This would do what the intent of the rule was and eliminate GMs manipulating the draft.

  • A-Rod’s Wingman

    So two pretty big anti-player measures. I know the owners pushing for FA compensation, and I get that, but who the hell wants hard slotting? The Pirates, D-Backs, Royals, Orioles and Mariners all spent big in the draft recently. The Rangers, Yankees, Giants, Tigers, Red Sox, and Rays are threats to spend big in the draft too. The Cardinals , Reds, Angels, Dodgers, and Braves aren’t exactly draft cheapskates either. Why protect the shitty half of the league at the expense of the good half and the health of the game?

  • Dave203

    FA compensation is ridiculous. If you want the player, sign him. If not, that’s you’re problem. They already have a luxury tax so the Yanks are contributing to their funds to sign a big contract. If you can’t convince the player to stay or are too cheap to pay him out, oh well.

    Teams get 6 years on ML service on a player they draft. They get plenty of use before the player hits FA and had plenty of time to extend them. I wouldn’t mind if the league offered compensatory picks like the NFL, but no team should have to give up their pick because another team cannot sign their own player.

  • Gonzo

    Looks like Type B compensation is going to stick around this year.

  • Plank

    I don’t understand. I would think the reason the players would trade FA compensation for capping draft spending is because of type A. Type B wouldn’t have any effect on players salaries.

    • The Fallen Phoenix

      Unless Type A comp moving forward is treated like Type B comp – i.e., teams who lose Type A free agents receive compensation picks out of the ether, not from the signing team – then this makes zero sense. CBA definitely sounding owner-heavy thus far, which sucks for the game.

  • Ted Nelson

    Yeah, sort of figured it wouldn’t be that immediate