For those interested, I will be keeping track of the compensation for Alfonso Soriano in the top right corner. Updates will be made as Type A and B free agents sign.
I touched on this topic a few days ago when the rumors of Soriano’s departure first surfaced. Soriano has passed the physical and the deal is official, so the next step is the waiting game to see where the Nationals ultimately end up.
MLB is operating under a new set of rules with regards to compensating teams for loss of free agents in the new Collective Bargaining Agreement (CBA). Here is some quick background on the new free agent compensation:
- The pool of Type A players shrinks from top 30% of each position to top 20%, while the Type B player pool will be reduced from the top 31-50% of players to 21-40%
- Type A players will still earn the signing teams first round pick and a supplemental first round pick with one exception
- The first 15 picks of the first round are protected from the above compensation. In these cases, the signing team loses their second round pick (and so forth)
- In the case where a team signs multiple Type A free agents, the Elias scoring is used to “break ties”
- Teams that lose a Type B free agent will now earn a supplemental first round pick instead of taking selection from club that signed player
- The salary arbitration offer deadline moves to 12/1, while the acceptance deadline moves to 12/7. A player must be offered arbitration in order to return compensation. Players signed prior to arbitration deadline are considered as to have been offered arbitration, thereby requiring compensation
Why is this important?
It will play a huge role in what picks the Nationals receive in return for Alfonso Soriano. As I stated in my prior post, the Nationals will currently receive the Cubs second round selection along with a supplemental first round pick.
The supplemental first round selection is pretty much locked in at no worse than #32. The assigning of supplemental selections is ordered first by Type A compensation and then by Type B. The picks are further broken out based upon previous season’s record. In the Nationals case, there is one team with a Type A free agent who has a worse record than they did in 2006. The Baltimore Orioles and Kevin Millar. If Millar is both offered arbitration and signed by another team, the Nationals would slot in the second position in the supplemental first round.
The other selection has many more moving parts that can impact when the Nationals select. It can shift rounds (not likely) and slide later and later than its initial location as the 33rd selection overall (much more likely).
There is the impact of the Type A free agents. As I detailed in my previous post, the Nationals will need to watch to see if the Chicago Cubs sign any of the Type A free agents ranked higher than Soriano (see table below)
| PLAYER |
SCORE |
OLD |
NEW |
| Pettitte, Andy |
89.624 |
HOU |
|
| Alou, Moises |
86.444 |
SF |
NYM |
| Zito, Barry |
85.196 |
OAK |
|
| Drew, J.D. |
85.111 |
LAD |
|
| Durham, Ray |
82.251 |
SF |
|
| Lee, Carlos |
80.833 |
TEX |
|
| Molina, Bengie |
80.476 |
TOR |
|
| |
|
|
|
| Soriano, Alfonso |
80.222 |
WAS |
CHC |
If the Cubs were to sign any of the six remaining free agents listed (not likely given the rumors out there), the Nationals compensation would drop a round for each player signed by the Cubs using the Elias scores as the tiebreaker.
Even if the Nationals retain their claim to the Cubs second round selection, there is an impact of both Type A and Type B free agents on when specifically the Nationals make that selection. According to Baseball America, there are 44 Type A free agents on the market this offseason.
| Name |
Name |
Name |
Name |
| Pettitte, Andy |
Gonzalez, Luis |
Huff, Aubrey |
Lugo, Julio |
| Alou, Moises |
Suppan, Jeff |
Clemens, Roger |
Graffanino, Tony |
| Zito, Barry |
Matthews Jr, Gary |
Bonds, Barry |
Guardado, Eddie |
| Drew, J.D. |
Maddux, Greg |
Weathers, David |
Dellucci, David |
| Durham, Ray |
Speier, Justin |
Baez, Danys |
Roberts, Dave |
| Lee, Carlos |
Loretta, Mark |
Hernandez, Roberto |
Millar, Kevin |
| Molina, Bengie |
Belliard, Ronnie |
Gagne, Eric |
Riske, David |
| Soriano, Alfonso |
Lieberthal, Mike |
Borowski, Joe |
Catalanotto, Frank |
| Schmidt, Jason |
Aurilia, Rich |
Hermanson, Dustin |
Springer, Russ |
| Glavine, Tom |
Floyd, Cliff |
Williams, Woody |
Seanez, Rudy |
| Piazza, Mike |
Walker, Todd |
Fultz, Aaron |
Bradford, Chad |
(in order according to Elias scores, read down columns L to R)
and there are 42 Type B free agents
| Name |
Name |
Name |
Name |
| Zaun, Gregg |
Weaver, Jeff |
Schoeneweis, Scott |
Stanton, Mike |
| Lofton, Kenny |
Villone, Ron |
Helling, Rick |
Kennedy, Adam |
| Counsell, Craig |
Marquis, Jason |
Batista, Miguel |
Payton, Jay |
| Mulder, Mark |
Walker, Jamie |
Hillenbrand, Shea |
Oliver, Darren |
| Thomas, Frank |
Mercker, Kent |
Ortiz, Ramon |
DeRosa, Mark |
| Lilly, Ted |
Pierre, Juan |
Ohka, Tomo |
Barajas, Rod |
| Nixon, Trot |
Meche, Gil |
Foulke, Keith |
Burnitz, Jeromy |
| Gonzalez, Alex |
Padilla, Vicente |
Feliz, Pedro |
Mota, Guillermo |
| Conine, Jeff |
Park, Chan Ho |
Embree, Alan |
Mesa, Jose |
| Wilson, Preston |
Guillen, Jose |
Klesko, Ryan |
. |
| Wells, David |
Rhodes, Arthur |
Hawkins, LaTroy |
. |
(in order according to Elias scores, read down columns L to R)
As of today, four Type A (Alou, Soriano, Speier, and Catalanotto) and five Type B (Stanton, DeRosa, Gonzalez, Thomas, and JWalker) free agents have signed with new teams. This adds nine supplemental first round picks, shifting the Cubs 2nd round pick from #33 to 42. Not all of the remaining players will sign with another team. Nor will they all be offered arbitration on 12/1. But if only 1/4 of them (a conservative estimate) were to receive arbitration and sign with another team, the impact to the second round selection would be a shift of 21 spots (#33 to #53).
The number of supplemental selections is truly an unknown given the CBA’s change in Type B compensation. In the previous agreement, Type B free agents required the signing team’s first round selection. This was a disincentive to signing teams who were hesitant to sacrifice one of their own selections to sign a player who were not even considered in the top third of players, according to Elias. Compensation is now independent from the signing team. Teams may be more willing to sign Type B free agents regardless of the comepnsation issue. The Nationals themselves can impact this with Type B free agents Ramon Ortiz and Jose Guillen out there. It may be in the Nationals best interest to offer arbitration to at the very least Ortiz (if not Guillen) in hopes of adding more selections in the 35-45 range. If this is the case, the Nationals 2nd round selection could realistically slide later and later … perhaps into the low 60s.
The stockpiling of draft picks will clearly be an important part of the rebuilding process and the hot stove bears watching if for no other reason than to see what the ultimate return for Alfonso Soriano will be.