Real-life FA Compensation Question

[JesseTerry]

I know there are minds out there that are much better versed in this than mine, so, I'll pose the question now.

Does anyone know, and can provide written evidence, on whether or not Type A or Type B free agents lose their compensation status after a certain date if they are not signed during the off-season? Has it ever happened?

Case in point, C Jorge Posada was deemed by the game to be a Type A free-agent in our online league (MLSB).

We have a compensation system in place that protects the top 15 and the like, sandwich picks instituted, etc.

So far, we're into mid-February, and no one has signed Mr. Posada due to his high contract demands.

Is there a cut off date in real life where he would not get compensation?

[lencombs]

Originally Posted by JesseTerry

Is there a cut off date in real life where he would not get compensation?

I looked up the current mlb collective bargaining agreement as found at this link.

http://mlbplayers.mlb.com/pa/pdf/cba_english.pdf

reading page 73 (compensation rights of former team) it would seem to me that December 1st is the deadline for a free agent's former team to be awarded any compensation.

(c) A Type A or B Player shall be subject to compensation only
if (i) he signs a contract with another Club prior to December 1; or
(ii) he is offered salary arbitration by his former Club on or before
December 1 pursuant to Section B(3) of this Article XX and signs a
contract with another Club.

[JesseTerry]

Interesting. I'm not sure that date is conducive to online leagues where FAs take much longer to file, but it's good to know that there is precedent for such a deadline. Thanks!

[lencombs]

studying it further, need a lawyer to decipoher this thing.

http://mlbplayers.mlb.com/pa/pdf/cba_english.pdf

(ii) he is offered salary arbitration by his former Club on or before
December 1 pursuant to Section B(3) of this Article XX and signs a
contract with another Club.

if the team offered the player arbitration, but he refused the team would still be eligible for compensation, even after december 1st.
Reading the CBA further, on page 76 section c March 15th would seem to be the deadline for compensation being awarded his former team as stated here:



(c) Free Agency if Assignment Not Made. If the Player’s
Club fails to assign his contract, as set forth in this Section C, on
or before March 15, the Player shall become a free agent immediately
eligible to negotiate a contract with any Club without any
restrictions or qualifications. The Player shall not be deemed to
have exercised his right to demand a trade, for purposes of paragraph
(5) below, and the Club signing such a free agent shall do
so without regard to the compensation and quota provisions of
Section B.


So reading that, March 15th is the date the free agent would be free and clear of any signing teams having to pay compensation. Hope that helps.

[Le Grande Orange]

Originally Posted by lencombs

(c) Free Agency if Assignment Not Made. If the Player’s
Club fails to assign his contract, as set forth in this Section C, on
or before March 15, the Player shall become a free agent immediately
eligible to negotiate a contract with any Club without any
restrictions or qualifications. The Player shall not be deemed to
have exercised his right to demand a trade, for purposes of paragraph
(5) below, and the Club signing such a free agent shall do
so without regard to the compensation and quota provisions of
Section B.

So reading that, March 15th is the date the free agent would be free and clear of any signing teams having to pay compensation. Hope that helps.

No, the March 15th deadline is in regards to players who exercised their right to demand a trade. As it states, a player under contract who demanded a trade during the off-season had to be traded by March 15th or else the player becomes a free agent. This right was removed in the most recent CBA for new contracts but still exists for contracts executed prior to that CBA.

Players becoming a free agent as a result of not having their trade demand fulfilled by March 15, or because they weren't offered a new contract by the tender date, or because they opted for free agency rather than accept an outright assignment to the minor leagues, none of these types of free agent are subject to compensation. Only those players becoming free agents as a result of acquiring six years of major league service are subject to potential compensation.

[lencombs]

Originally Posted by Le Grande Orange

No, the March 15th deadline is in regards to players who exercised their right to demand a trade. As it states, a player under contract who demanded a trade during the off-season had to be traded by March 15th or else the player becomes a free agent. This right was removed in the most recent CBA for new contracts but still exists for contracts executed prior to that CBA.

Players becoming a free agent as a result of not having their trade demand fulfilled by March 15, or because they weren't offered a new contract by the tender date, or because they opted for free agency rather than accept an outright assignment to the minor leagues, none of these types of free agent are subject to compensation. Only those players becoming free agents as a result of acquiring six years of major league service are subject to potential compensation.

I'll disagree with that, it simply states if assignment is not made by the players former team by March 15th, meaning his former team or any other team that signed him, he is a free agent without any compensation. Mentions nothing of player demanding a trade.

http://mlbplayers.mlb.com/pa/pdf/cba_english.pdf

This is the current MLB CBA, if you have a link to a more current one I would be interested in reading it.

As for the original poster, March 15th would seem to me to be a reasonable deadline for compensation. If no teams have signed the player after 3 months of free agency it will have met the spirit of the rule, which is to allow big market teams with plenty of money a shot at signing the guy, in exchange for draft picks sent to the smaller market team who can not afford to keep him. My 2 cents.

[JesseTerry]

Thanks for the interpretation guys. :-D

[Le Grande Orange]

Originally Posted by lencombs

I'll disagree with that, it simply states if assignment is not made by the players former team by March 15th, meaning his former team or any other team that signed him, he is a free agent without any compensation. Mentions nothing of player demanding a trade.

Read section C of Article XX from the beginning:

C. Right to Require Assignment of Contract

(1) Eligibility

Any Player who has 5 or more years of Major League service at the time of the assignment of his contract and whose contract was executed prior to October 23, 2006 and covers the next succeeding season, may elect, at the conclusion of the season following assignment, to require that his contract be assigned to another club.

What this means is that if a player was under contract to a club and was traded (i.e. his contract assigned to another club), and the contract covers covers the next season, at the end of the season the player can demand a trade rather than play the next season with the club he was traded to.

If the demand is made, the club has to trade the player by March 15 or else he becomes an unrestricted free agent (that is, he can be signed by any other club without any compensation).

Only a player with a contract can have that contract assigned to another club; a free agent is a player without a current contract.

The remaning portions of Section C describe how this request of a contract assignment (i.e. trade demand) works. Compensation for lost free agents is only discussed in Section B, which is about players becoming free agents due to acquiring six or more years of major league service.

[Carplos]

The player has the right to stay with the team if the deadline isn't met, though. Rick Reed did so in 2001 (or 02?) with the Twins because he was never going to get the $$$ he had left in FA that late (or based on how well he pitched at that point.)