Daily Archives: November 10, 2012

Free Agent Compensation and the Draft under the New CBA

The basics of free agent compensation have been rehashed across the internet, however there are some more subtle things with the new CBA, that dramatically effect the draft, and especially draft strategy.

The Basics:

Qualifying Offers: A team can extend a qualifying offer to any of their free agents who have been with the team for the entire season equal to the average of the Top 125 salaries (in 2012 this was $13.3 million), the player had until Friday to accept that offer (just a one year contract) or reject it and become a free agent.

Free Agent Compensation: Any team that signs a player extended a qualifying offer forfeits their first round pick (if it is outside the Top 10) or their second round pick (if their first pick is within the Top 10).  Their old team receives a pick at the end of the first round. Continue reading