Major League Baseball Free Agency Explained

December 4, 9:20 PMMLB ExaminerAlex Brown

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What's a baseball fan to do between the World Series and Spring Training?  Follow the free agent signings, of course!  But, don't let the term fool you - free agency in Major League Baseball is not without its set of rules.  Here's a short guide to understanding the free agent signing process - try to remember these when speculating which moves your favorite team will make.

Declaring Free Agency
- To become a free agent, a player must file for free agency.
- The player must have at least six years of MLB service time.
- The player must file within 15 days of the end of the World Series.
- During this 15 day period, the player's former club has exclusive negotiating rights.

Salary Arbitration
- By December 1, each team must decide whether or not to offer arbitration to their former players who have filed.
- By December 7, a player offered arbitration must decide whether or not to accept.
- If the player accepts arbitration, he returns to the 40 man roster.  The team will continue to negotiate until the Feb. arbitration hearing takes place.  If arbitration is rejected, the player may negotiate with the other 30 MLB teams.

Types of Free Agents and Compensation
- If a player signs with another team before Dec 2, or his team offered arbitration but failed to re-sign him, the team may be offered compensation - this is determined by the player's ranking:
- Type A: These players rank in the top 20 percent at their position, statistically.  If a Type A player signs with another team, his former team receives a compensatory draft pick between the first and second rounds of the draft.
- Type B: These players rank between the top 21 and 40 percent at their position, statistically.  If a Type B player signs with another team, his former team receives a compensatory draft pick between the first and second rounds of the draft.
- If a player does not rank as a Type A or B, the former team receives no compensation if he signs with another team.

Little Known Signing Limits
- If only 0-14 players file for free agency, no team may sign more than one Type A or B free agent.
- If 15-38 players file, no team may sign more than two of each type.
- If 39-62 players file, no team may sign more than three of each type.
- If 63 or more players file, there are no signing limits.

Keep these rules in mind when following the free agent activity this offseason.  A free agent tracker can be helpful in tracking player movement.