From Hudson Belinsky at Baseball America on December 14, 2016:
Major League Baseball and the players union agreed to the terms of a new Collective Bargaining Agreement on Dec. 2, and it was ratified on Wednesday. Details of the new CBA are trickling in, but here are some of the key changes that affect the draft.
Draft Pick Compensation
The system of draft pick compensation will change drastically. Under the previous agreement, teams signing players who had rejected qualifying offers from their previous team would forfeit their highest unprotected pick. Now, a team signing a QO free agent will be subject to the following rules, according to MLB:
• A non-market disqualified Revenue Sharing Payee team (i.e. a team that receives revenue sharing money) will forfeit its third highest remaining selection.
• A Competitive Balance Tax paying team (i.e. a team whose payroll exceeds the luxury tax threshold) will forfeit its second-highest and fifth-highest remaining picks—in addition to having its international signing bonus pool reduced by $1 million in the next full signing period.
• All other teams will forfeit their second-highest remaining pick and will have their international bonus pool reduced by $500,000.
Read the full article here: http://www.baseballamerica.com/draft/new-cba-changes-draft/#xSCDZmw66pt56BHB.97
Originally published: December 14, 2016. Last Updated: December 14, 2016.