News and Rumors

How Free Agent Compensation Works

How Free Agent Compensation Works

There have been a lot of questions in the past few days about free agent compensation and offering arbitration to pending free agents.  The process isn't one we've had to cover in Pittsburgh for quite some time.  That's mostly because the Pirates haven't seen many ranked free agents in recent years.  Most of the candidates have been traded away prior to reaching free agency.  The last time the Pirates saw a compensation pick for a departing free agent was in 1993, when they had two compensation picks, taking Jermaine Allensworth and Charles Rice with the selections.

The common assumption is that when a player elects free agency, the team must try to bid on him against every other team.  That's true to an extent, although the team reserves the right to offer arbitration.  The arbitration process is no different than the process used in years 4-6 of a player's professional career.  The team offers arbitration, and if the player accepts, the two sides exchange salary figures, and head ...

This content is for Pirates Prospects subscribers only. Subscribe today to access all of our daily coverage of the Pirates' system, with rates lower than $2.25 per month. If you're already a member, you can log in below. If you think you're receiving this message in error, please e-mail tim@piratesprospects.com.

News and Rumors
@http://twitter.com/timwilliamsp2

Tim is the owner and editor in chief of Pirates Prospects. He started the site in January 2009, and turned it into his full time job during the 2011 season. Prior to starting Pirates Prospects, Tim worked with AccuScore.com, providing MLB, NHL, and NFL coverage to various national media outlets, including ESPN Insider, USA Today, Yahoo Sports, and the Wall Street Journal. He also writes the annual Prospect Guide, which is sold through the site. Tim lives in Bradenton, where he provides live coverage all year of Spring Training, mini camp, instructs, the Bradenton Marauders, and the GCL Pirates.

More in News and Rumors

(Photo Credit: David Hague)

Pirates Looking For Fourth Outfielder as Deadline Nears

John DrekerJuly 31, 2015
PNC Park in Pittsburgh

Huntington: Pirates Don’t Plan to Add a Starting Pitcher Via Trade

Tim WilliamsJuly 30, 2015
Harold Ramirez 3

Harold Ramirez Among Three Pirates’ Players Taking Home Weekly Awards

John DrekerJuly 27, 2015
(Photo Credit: David Hague)

Pirates Now Likely to Keep Pedro Alvarez

John DrekerJuly 27, 2015
(Photo by: David Hague)

Pirates One of Several Teams Interested in Zobrist

John DrekerJuly 27, 2015
(Photo Credit: David Hague)

Expect the Pirates to Be Active During Trade Deadline Week

Tim WilliamsJuly 27, 2015

Pirates Prospects is an independent media outlet, and is in no way affiliated with the Pittsburgh Pirates, their minor league affiliates, Major League Baseball, or Minor League Baseball.

Copyright © 2015 Pirates Prospects