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Ben, I like the idea of basing it on the player's positional ranking.
Free Agent CompensationA club may receive draft-pick compensation if it loses a free agent if:(1) the player signs with another club before December 2; or(2) the club offered arbitration to the free agent but failed to re-sign him.Free agent compensation is based on the free agent’s place in the Elias Sports Bureau’s ranking of all major league players by position based on their performance during the last two seasons. Players are ranked by league in one of five positional groups: 1) 1B/DH/OF, 2) 2B/SS/3B, 3) catchers, 4) starting pitchers or 5) relief pitchers. The statistical criteria vary by position, and are not made available to anyone outsideof Major League Baseball.Type A players are those who rank statistically in the top 20 percent at their position. Compensation for a Type A player is the signing club’s first-round draft pick and a supplemental pick between the first and second rounds.Type B players are those who rank between the top 21 and 40 percent. Compensation for a Type B player is a supplemental pick between the first and second rounds.If a team loses a free agent who is statistically in the bottom 60% of all players at his position, the former team does not get any compensation.Read more at Suite101: Baseball Free Agency Rules: MLB Player Eligibility and Draft Compensation Explained http://baseball.suite101.com/article.cfm/baseball_free_agency_rules#ixzz0hAD6MWBL
Type A players are those who rank statistically in the top 20 percent at their position. Compensation for a Type A player is the signing club’s first-round draft pick and a supplemental pick between the first and second rounds.Type B players are those who rank between the top 21 and 40 percent. Compensation for a Type B player is a supplemental pick between the first and second rounds.If a team loses a free agent who is statistically in the bottom 60% of all players at his position, the former team does not get any compensation.
another question what happens if the team doesnt have a 1st round pick avaiable?
ExceptionsIf the signing club’s first-round draft pick falls in the upper half of the first round, that choice is protected and the signing club loses its second-round selection instead.If a club signs multiple free agents within the same category, its earlier pick goes to the team that lost the higher-rated player.
Excellent point. Are 1st rounders un-tradeable in MLB?