Rules about compensatory Draft picks have led to some confusion this offseason.Only Type A or Type B free agents who have turned down arbitration yield compensation picks. That means the Brewers, who offered Sabathia arbitration, wound up being compensated by the Yankees with their second-round pick in next June's First-Year Player Draft. The Padres, on the other hand, didn't receive a pick for all-time career saves leader Trevor Hoffman when he signed with the Brewers, because he wasn't offered arbitration. The main reason a club might decline to offer arbitration is that it's more concerned with the amount of money an arbitrator might award to the player than preserving the possibility of a compensatory Draft pick. This year, 24 of the 63 players in that group were offered arbitration. Two of the 24, Darren Oliver of the Angels and David Weathers of the Reds, accepted arbitration and returned to those clubs. Thus, 22 of 216 free agents this year, or about 10 percent, carry Draft-pick compensation if they are signed by another club. With 11 Type A and Type B free agents who were offered arbitration unsigned, the question arose regarding what might happen if one of them signed with a Major League club after the Draft, to be held in June.
The list of unsigned Type A players includes Ramirez, Oliver Perez, Jason Varitek, Orlando Cabrera, Juan Cruz, Orlando Hudson and Sheets. The Type B list includes Mark Grudzielanek, Paul Byrd, Dennys Reyes and Brian Shouse.
"It's always been our position that if [a player] goes past the Draft, the compensation goes away," Manfred said, adding that it has never happened.
Barry M. Bloom is a national reporter for MLB.com. This story was not subject to the approval of Major League Baseball or its clubs.