Comp picks 2016

[Ben (Rays GM)]

As discussed, we will be changing the comp pick system this coming offseason. The $10 million threshold was simply too low, giving us an enormous amount of comp picks in the supplemental round in this year's draft. While next year's free agent class isn't quite as extensive as the one that we just had, something needs to be done to offset the issue. As such, there are currently two proposed solutions:

1) Increase the threshold. We could increase the threshold to $15 million. This would more closely reflect the amount of the "qualifying offer" required by MLB, and would cut the comp round by more than half. If we go with this option, we can vote whether to make the change all at once or do it gradually ($12 million this offseason, $15 million next)

2) Implement an actual qualifying offer system. I'll quote Brian who came up with the idea: A qualifying offer constitutes a 1 year $15 million bid from the offering team which will serve as the opening bid when that free agent's bidding is opened. When posting their rosters at the start of the off-season, GMs must designate which of their impending Free Agents they've issued a qualifying offer to. Free Agents who received a qualifying offer but signed with a different team will earn the qualifying team a compensatory pick in the draft. You can only make qualifying offers to as many free agents as you have cap room for - if you have three impending free agents but only $20 million available, you'll have to choose one of them to make the offer to. This rule could be implemented with or without a "mercenary rule" (players traded during their final season wouldn't earn their team a pick).

Open for suggestions/discussion now. Poll to follow next week.

[Jon (Astros GM)]

I like the idea of a Qualifying Offer system but without the restrictions of cap space. I also think the QO should be a bit lower, maybe 12-13M. We had quite a few guys gradually build up bids until they got to 10M. Having a starting bid of say 12M would detract any team of placing QO on those guys. Plus, most guys receiving offers would be bid on almost immediately, so the team with 20M of cap space but with 4 year 6 or impending FA that should get offers can only offer one? Maybe cap it at 3 per offseason and if you go over the cap, we have penalties for that. I also think any team bidding on a QO player can't just go 2 yr 15M. The bid should go at least 1M more.

I think we need to change the system. This is a great way to do it. Open to criticism and other ideas.

[Ben (Rays GM)]

I'm starting to lean towards the first option. As much as I love the qualifying offer idea in theory, I think Jon has a good point about how it's unfair that a team with limited cap space would only be able to collect comp picks on one or two players. Unfortunately I don't think the QO idea without the cap restriction would work though, because if a team with say $20 million available misjudges the market and offers QOs to four players thinking that they'll for sure get outbid, and then they don't, that team is suddenly $40 million in the red, and that's just not something you can come back from.

My vote would be to go with option one and raise the threshold to earn a comp pick to $15 million. Keeps it simple, but still would have cut the comp round by over 50% if we'd done it that way this past year.

Would love to hear other thoughts!

[Jon (Astros GM)]

For the sake of ease, option 1 is most likely the easiest way to go. Set it at 15M and maybe adjust if we expand the cap in the future. The sooner we set it up will be for the better, as trades couple be impacted.

[Brian (Blue Jays GM)]

I'm certainly not opposed to keeping it simple. If the consensus is raising the threshold I'm all for it.

[Micah (White Sox GM)]

I'm on board for raising the threshold. Do you think the number of free agents to reach $10 million this last off-season was a one-time thing, or do you think it is a trend? I suppose as the salary cap goes up, free agent bidding will too, so in that case it would definitely make sense to raise it proportionately.

[Ben (Rays GM)]

So everyone's on the same page, we will be raising the threshold this offseason. I've added a poll to the first post on this thread so we can decide whether we want to raise it all right now or do it gradually, which might not be a bad idea since we're announcing this kind of late and the trade deadline is approaching. Please vote!