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 ...

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News and Rumors
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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.

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