Author Topic: Proposal to change Compensation Rules  (Read 2458 times)

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Offline Flash

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Proposal to change Compensation Rules
« on: November 22, 2016, 08:15:57 PM »
Last season I broached the subject of changing our Compensation Rules.  There was a lengthy discussion, which you can find at the link:

http://www.profsl.com/smf/index.php?topic=244841.0

In that discussion I attempted to explain how we can mirror the MLB's practice of extending Qualifying Offers and still have a compensation system for those teams who lose Type A free agents.  I am raising the issue again because in MLB, Type A and Type B designations are gone.  Now, when a player reaches free agency, the team that is going to lose him can offer a qualifying offer that is the average of the previous season's top 125 salaries.  This year it is $17.2m for one year.  Last year, when the QO was $15.8m, three players accepted qualifying offers:  Colby Rasmus, Brett Anderson, and Matt Wieters.

This year, 8 players were extended QOs:

OF Mark Trumbo (17 - 2016) ----------- $9.0m - Type B
SP Jeremy Hellickson (35 - 2016) ---- $6.0m - Type B
OF Dexter Fowler (14 - 2016) ---------- $10.5m - Type A
OF Yoenis Cespedes (19 - 2015) ----- $8.5m - Type B
OF Jose Bautista (6 - 2015) ------------ $19.5m (70% rule) - Type A
OF Ian Desmond (10 - 2016) ---------- $12.0m - Type A
CI Edwin Encarnacion (11 - 2015) ---- $14.0m - Type A
MI Neil Walker (13 - 2015) -------------- $6.5m - Type B

In FGM, we technically have the ability to make a Qualifying Offer to all our players on expiring contracts by extending their contracts based on their ranking in our Extension Value Scale.  In MLB, a QO is the average of the top 125 salaries of all MLB players.  In FGM, we utilize a ranking of the existing contracts for each position--from the highest to the league minimum--and we now revise that scale every year at the end of the season.

In the list of 8 players listed above, I included their highest rank for the past two years, the salary they would receive if they were free agents in FGM, and whether they would be Type A or Type B free agents.  As you can see, they are split down the middle, 4 Type A and 4 Type B.  With the exception of Jose Bautista, none of us would sign any of the remaining 7 players for $17.2m ($17.5m) because 1: our rules require a minimum 4 year contract for such a salary (unless it's a 70% contract); 2: it is a prohibitive contract within our limited salary cap structure; and 3: none of them are worth such a contract in our fantasy world.

For us, in Franchise GM, Type A free agents are as follows:

Top 6 C
Top 12 MI, CI
Top 15 OF
Top 30 SP
Top 6 RP

With all this, I recommend a change in our Compensation System to insure a more competitive balance within FGM.  I believe the time has come to modify our Compensation System because, under our existing rules, we offer too much compensation and it hurts the smaller market teams.  Teams cannot improve through the draft because our Type A and Type B system essentially takes away the opportunity to utilize a high draft pick to secure some much needed talent.

Right now we give TWO draft picks for a Type A free agent and ONE draft pick for a Type B free agent.  In the recent draft, we had 12 Type A picks, of which :OAK: got 4, :CHC: got 2, :SEA: got 2, :COL: got 2, and :TOR: got 2.  Eight of the picks were taken by playoff teams.  There were also 10 Type B picks (:SF: got the 3rd pick of the Compensation Round).  There were 20 picks between the 1st and 2nd Round and that really impacts the rest of the league because 50 picks were made before the start of the 2nd Round (and a 2nd Round pick essentially becomes a 3rd Round pick).  This practice impedes the development of rebuilding teams with high draft picks because they lose the opportunity to get top tier talent--with needed talent essentially going to the more successful teams. 

In MLB, it is the players who are declining the QO, and that offer is only a one-year contract.  In FGM, we, as Owners/GMs, are the ones who chose to decline the contract offered by our Extension Value Scale.  In MLB, there is no Type A and Type B as in the past.  A team now decides whether a player is too valuable to lose without compensation and, thus, can decide to make a QO--which places the compensation for that player at ONE draft pick if he signs with another team.  In FGM, I believe it is time to adopt the same principle.

So, in an effort to mirror the current practices of MLB, and apply it to FGM, I propose the following:

1:  Top 10 first round picks are protected in FGM just like they are in MLB;

2:  There are only Type A picks, no more Type B picks;

3:  A team in slots 11-30 who signs a Type A player loses their 1st Round pick, but the team losing the Type A player does not assume that spot in the 1st Round.  Instead, the pick is lost and the 1st round is condensed. The pick is then awarded in a Compensation Round between Rounds 1 and 2.  A team in slots 1-10 loses their Round 2 pick to the team who originally owned the player they signed.  If that team in slots 1-10 has a pick in the Compensation Round, because a team in slots 11-30 signed their player, then that pick would go to the team that would have gotten their 2nd Round pick;

4:  There will be no compensation for players acquired during the season.  The Compensation Rule only applies to players who were on their teams the entire season.  This prevents compensation for "rental players acquired in trades".

Under this scenario, our recent 2016 FYPD would have had 28 1st Round picks and a Compensation Round with 6 picks.  Instead of the 2nd Round beginning after 50 picks, it would have begun after 34 picks.  I believe that promotes a more competitive balance in the league because the talent pool is more accessible to more teams.

What do you think?
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Offline BHows

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Re: Proposal to change Compensation Rules
« Reply #1 on: November 22, 2016, 08:47:22 PM »
The only issue I would have is the 4th point. I do agree but would I'm not sure how we would accurately track that type of player movement?
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Offline Flash

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Re: Proposal to change Compensation Rules
« Reply #2 on: November 22, 2016, 09:08:44 PM »
The only issue I would have is the 4th point. I do agree but would I'm not sure how we would accurately track that type of player movement?

There are several ways to track this. 

1:  We could establish a Child Board for current season trades;

2:  When reviewing the list of Type A free agents, we can review the Transactions Log for a given team on Fantrax;

3:  Keep an original Excel sheet from the beginning of the season to cross reference whether a given Type A free agent was on the original roster at the beginning of the season.

4:  Conduct a ProFSL Board search to see when a player was added to a given team.

I really don't envision this as a problem.
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Offline BHows

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Re: Proposal to change Compensation Rules
« Reply #3 on: November 22, 2016, 10:08:35 PM »
As long as we can keep track of it thru Transactions  :iatp:
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Offline ldsjayhawk

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Re: Proposal to change Compensation Rules
« Reply #4 on: November 23, 2016, 09:39:44 AM »
I think you could possibly leverage the signed field in the spreadsheet or list them under the cap hits section with no $ value.

When I this start?  I would think that you would have to wait a draft because this is something that factors into decisions to extend or not.

What happens if MLB substantially alters compensation in the CBA, which I think it will?
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Offline Flash

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Re: Proposal to change Compensation Rules
« Reply #5 on: November 23, 2016, 01:07:02 PM »
I think you could possibly leverage the signed field in the spreadsheet or list them under the cap hits section with no $ value.

If this is in reference to Item #4, I don't think it is very hard to verify which Type A free agents are not with a team all season.  I believe most of us are aware which players have been acquired via an in-season trade.  I don't envision many in-season free agent acquisitions being on an expiring contract.

When I this start?  I would think that you would have to wait a draft because this is something that factors into decisions to extend or not.

Waiting a draft only prolongs the problem we have allowed to develop.  Extensions are usually an economic decision:  Can we afford to keep a player based on the effect it has on our available salary cap?  We are all aware of how much cap we have available for the next free agent period, and I find it hard to believe any of us would decide we'd rather lose a productive player we can reasonably afford for an unknown draft pick, when we are not even sure where that particular pick would be in draft order.

What happens if MLB substantially alters compensation in the CBA, which I think it will?

This is a malleable issue.  If we are committed to mirroring the MLB as much as possible, then we massage our process to reflect the changes.  We can't continually balk at change simply because we think something might change in the future.  There may well be some changes, but I am hoping we are a league which works with those changes in a proactive way and make the necessary changes to adapt them to our needs.

During the time this league has been in existence, we have had two major changes in our draft:  1) We got rid of signing bonuses; and 2) We stipulated that a draftee had to be signed to an MLB contract.  Those changes were positive moves for FGM and I believe the changes I am proposing will help us close the gap between the competitive and non-competitive teams.
« Last Edit: November 23, 2016, 01:47:22 PM by Flash »
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Offline Anthony

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Re: Proposal to change Compensation Rules
« Reply #6 on: November 23, 2016, 01:17:31 PM »
I like it. However I also think we should wait until the new CBA is made and see if there are significant changes we can mirror.
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Offline jpmanchester

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Re: Proposal to change Compensation Rules
« Reply #7 on: November 23, 2016, 03:46:58 PM »
I'm ok with these changes. Our comp round is way too big and devalues all picks other than first rounders, like you explained. This seems to be a good way to fix that.
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Offline Flash

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Re: Proposal to change Compensation Rules
« Reply #8 on: November 23, 2016, 05:29:27 PM »
I like it. However I also think we should wait until the new CBA is made and see if there are significant changes we can mirror.

We could wait, but what are some of the issues being discussed?

--Roster size?  Adding one more player so you have 26 active roster; limiting September roster sizes to 28 or 29;

--Quicker disabled list?  Activating players sooner than 15 days;

--Shorten the schedule?  Have more days off in season

--Revenue sharing?

--Domestic violence policy?

--Manipulation of service time?

There are more, and they are all viable issues for MLB.  However, for our purposes, we are concerned with the issue of Qualifying Offers.  I recently came across a summary of its differing effects in the following passage.

"REVAMPING THE QUALIFYING OFFER"

Just this past winter alone, the Dodgers are an example of the benefits and perils of literally every side of the qualifying offer: Zack Greinke declined their QO and netted them a compensation pick; Brett Anderson accepted it but injured his back in spring training and has yet to return, costing the Dodgers more than $5 million so far for no return; Howie Kendrick turned it down but found nowhere to sign and ended up coming back to the Dodgers on a two-year, $20 million deal that was a deep discount for LA on multiple levels; and Hisashi Iwakuma would have cost them their own first-round pick had he not failed a physical and thus nullified a potential contract.

In our fantasy world, we have all of these factors to a certain degree. 

--A

TBD

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Re: Proposal to change Compensation Rules
« Reply #9 on: November 23, 2016, 11:41:58 PM »
Since we have already made decisions on FAs for this offseason,  I can't see this happening until the 2018 FYPD or next season's FA class.
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