Posted 9:55 PM by Doug

Report: Free Agent Compensation is History

Maury Brown has the scoop (link via BTF):

"Ken Davidoff of Newsday reported just over a week ago that teams may no longer receive draft picks as compensation for free agents who leave as part of the upcoming CBA.

Now comes word through sources that all the clubs have been notified that this indeed will be the case as both the Players Association and MLB have come to terms on the matter."

The MLBPA doesn't like the compensation system because it penalizes teams for signing free agents, as the real cost of signing a free agent is said free agent's compensation AND the cost of surrendering a high draft pick.

As for the owners, Greg Schuler of BTF sums it up:

"This agreement would also allow MLB to do what it pleases with the First Year Player Draft. As long as free agent compensation picks were in use, the MLBPA argued that any changes to the Rule 4 Draft had to be bargained as part of the CBA. MLBPA, unlike agents, wouldn't mind terribly if the draft picks had enforceable bonus slotting and could care less how many rounds make up the draft. MLB wants to reduce the scope and cost of the draft. By removing this barrier, it makes everyone happy except the amateur players and agents."

As for the immediate impact on the Giants - assuming this report is true, the Giants will not receive compensation if their high profile free agents (Jason Schmidt and probably Ray Durham) were to sign with another team this winter. On the bright side, the Giants will not surrender any draft picks for signing high profile free agents from other teams. Also, Brian Sabean will no longer be able to forfeit the Giants' first round draft choice.

Posted 10:55 PM by Doug

Quick Hitters

...An interesting tidbit from Ken Davidoff of Newsday (link via BTF):

"Something to watch in the negotiations for the new collective-bargaining agreement: It's possible that teams will no longer receive draft picks as compensation for free agents who leave. That means that the Nationals, who opted to keep Alfonso Soriano, could wind up with absolutely nothing if Soriano signs with another club."

And, of course, it also means that the Giants, who opted to keep Jason Schmidt, could wind up with absolutely nothing if Schmidt signs with another club. On the other hand, if the Giants were to sign a bunch of high profile free agents this winter, they would not have to surrender draft picks as compensation...

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...Bruce Jenkins floats an odd suggestion - manager of the 2007 Giants: Mike Matheny?

"While it's difficult to read Magowan's mind, he has some attractive options in Dave Righetti and Bob Brenly, among others, and a potential sleeper in Mike Matheny, assuming he (a) retires and (b) fully recovers from his post-concussion setbacks. Of all the players who began this season on an active roster, Matheny might be the most intriguing as a future manager."

The odds of Matheny managing the Giants in 2007 are probably very slim but it does indeed present an attractive option in that the Giants could work out a creative managerial contract. Matheny is due $4MM next year (including signing bonus) with a $2MM buyout for 2008 even though it appears Matheny will not play again.

I don't imgaine the MLB Players Association would happily rubber stamp any potential agreement between the Giants and Matheny in which Matheny would forfeit $6MM in guaranteed money. But maybe Matheny would accept a low salary to be the manager of the Giants, with the knowledge that he's already getting $6MM from the team...

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...This may have been mentioned elswhere but this is the first I've seen it:

"While (Jason) Schmidt would interest still the Mets, he's been blocked on waivers and can't be traded."

The article, published before the Mets acquired Shawn Green, also mentions the Mets were in "serious trade discussions" to acquire Moises Alou. So, Alou has either cleared waivers or he was claimed by the Mets...