Which Draft Picks Each Team Would Receive For Losing A Qualified Free Agent

Earlier today, MLBTR’s Tim Dierkes outlined what each team would have to surrender as compensation if it signed a free agent who rejected a qualifying offer.  Now, let’s take a look at what each team would receive in return if one of their free agents turned down a QO and signed with another club.  (As a reminder, players can’t be issued a qualifying offer more than once during their careers, and this year’s QO is set for $19.65MM.)

Revenue Sharing Recipients: Diamondbacks, Orioles, Reds, Guardians, Rockies, Tigers, Royals, Marlins, Brewers, Twins, Athletics, Pirates, Mariners, Rays

If any of these teams has a QO-rejecting free agent who signs elsewhere for more than $50MM in guaranteed money, the compensatory pick falls after the first round of the draft.  That means a pick that could fall within the top 30, since the Mets’ and Dodgers’ first selections dropped out of the first round because they exceeded the luxury tax threshold by more than $40MM.  If a team has a QO-rejecting free agent who signs elsewhere for less than $50MM guaranteed, the compensatory pick would come between Competitive Balance Round B and the start of the third round (roughly 75th-80th overall).

This winter’s free agent class doesn’t consist of many players who are plausible QO candidates from any of these team, except for possibly Mariners outfielder Mitch Haniger.  If Seattle did issue Haniger a qualifying offer, however, the compensation issue might still be a moot point since there is a chance Haniger might just accept the offer (after an injury-shortened season) and remain with the M’s.

Teams Who Don’t Receive Revenue-Sharing Funds, And Who Didn’t Pay The Competitive Balance Tax: Braves, Cubs, White Sox, Astros, Angels, Giants, Cardinals, Rangers, Blue Jays, Nationals

For these teams, the compensatory pick for losing a qualified free agent would also fall between CBR-B and the start of the third round (regardless of whether the player signed for more or less than $50MM).

Dansby Swanson (Braves), Willson Contreras (Cubs), and Carlos Rodon (Giants) will all surely receive qualifying offers.  Cardinals third baseman Nolan Arenado would’ve also been an obvious pick, except he chose to avoid free agency altogether in deciding to not opt out of his contract.

Competitive Balance Tax Payors: Red Sox, Dodgers, Mets, Yankees, Phillies, Padres

If a team exceeds the luxury tax, they still receive a pick if a qualified free agent signed elsewhere, but that compensatory pick falls after the fourth round of the 2023 draft.  That roughly works out to around the 140th overall pick in the draft, so it’s a pretty noteworthy drop from the 75-80 range from the previous grouping.

The penalty is more significant in this particular offseason, given how many of these teams have very prominent free agents that will surely receive qualifying offers.  The Yankees have Aaron Judge, the Dodgers have Trea Turner and maybe Tyler Anderson, the Red Sox have Xander Bogaerts and probably Nathan Eovaldi, and the Mets have a full quartet — Jacob deGrom, Edwin Diaz, Chris Bassitt, and Brandon Nimmo.

Exceeding the tax line can be seen as the cost of doing business, given how five of the six payors made the playoffs and the Phillies are competing for the World Series.  For the Red Sox, however, crossing the CBT threshold is doubly painful, as Boston didn’t even post a winning record in 2022.