White Sox news, Minor Leagues updates and more

November 20, 2011

Seems John Danks will be worth ‘Type A’ compensation next year [UPDATE]

Filed under: Chicago White Sox — The Wizard @ November 20, 2011 10:30 pm
Tags: , ,

Ken Rosenthal:

A different set of rules will take effect next offseason and for the remainder of the new agreement. The Elias rankings of free agents, which previously determined the value of draft-pick compensation, will be eliminated.

Teams can still receive direct compensation for select free agents by giving such players a one-year, qualifying offer for a predetermined amount. That amount will be more than $12 million in the first year of the agreement, then will rise in subsequent years.

A 1-year $12+ million offer to John Danks is a sure thing. This increases Danks’ trade value.

UPDATE: The Draft Pick Compensation section in the new CBA says:

1. Starting in 2012, “Type A” and “Type B” free agents and the use of the Elias ranking system will be eliminated.
2. The current system of draft pick compensation will be replaced with the following system:

A. Only Players who have been with their Clubs for the entire season will be subject to compensation.
B. A free agent will be subject to compensation if his former Club offers him a guaranteed one-year contract with a salary equal to the average salary of the 125-highest paid Players from the prior season. The offer must be made at the end of the five-day free agent “quiet period,” and the Player will have seven days to accept the offer.
C. A Club that signs a player subject to compensation will forfeit its first round selection, unless it selects in the top 10, in which case it will forfeit its second highest selection in the draft.
D. The Player’s former Club will receive a selection at the end of the first round beginning after the last regularly scheduled selection in the round. The former Clubs will select based on reverse order of winning percentage from the prior championship season.

So, the offer must be equal to the average of the Top 125. Jim Callis says the estimate is $10 million or more. MLBTR’s Ben Nicholson-Smith says more than $12 million. Danks will get that.

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