Type A Free Agency: Part I

[Editor's Note: Promoted from the FanPosts, in case anyone missed its insight.  Keep the good stuff coming, if you'd like to contribute.  I'd love to put more on the front page.]

There has been some talk about the "handcuffs" of Type A/B free agency, so I decided to poke around a bit more. It's part of why we're reluctant to talk to Juan Cruz. It's why Pudge and Jason Varitek may not have jobs next year. Details, thoughts and possible loopholes after the jump.

As you're probably aware, Type A/B free agents are those of a sufficient caliber that the league decides that the team losing them should get some compensation. Type A fall within the top 20% of their position group, while Type B fall within the top 40%, but not the top 20%. Teams that lose a Type A free agent are entitled to the first-round draft pick of the signing team, as well as a sandwich pick between the first and second rounds. (Exception: if the signing team is in the bottom half of the league, they lose a second-round pick, rather than first round.) Teams that lose a Type B free agent recieve a sandwich pick only. (This is all contingent on some other arcana like whether the player was offered arbitration and other things, but those details aren't needed for this discussion.)

I got curious as to whether there was any statute of limitations on Type A-ness, at least as far as compensation is concerned. Couldn't find anything in the discussions of it, so I checked the Collective Bargaining Agreement. (Article XX, Section B, if you're so inclined) There is no explicit sunset on Type A status, but there is a possible loophole. Quoting the CBA:

Such compensation shall consist solely of the amateur draft choices described in subparagraph (c) below and shall be awarded in the Major League Rule 4 Draft succeeding the Player’s election of free agency.

Italics mine. The compensation does not appear to be dependant on when the player is actually signed. So if there's a guy who involuntarily retired because noone thought he was worth salary+draft pick, it appears that on June 16th, you can sign him without giving up picks the next year either. Essentially, the compensation ship has already sailed. What's weird is that he (likely) still counts as a Type A/B; there are limits on how many you are allowed to sign, and it appears that he'll still count toward that limit for the current year.

Many other loopholes have been closed off by this provision of the CBA:

...nor shall there be any compensation paid for the loss of a free agent except as provided for in this Section B.

Essentially, I read this to mean you can't offer the FA's old team a minor leaguer if they'll chip in some cash, or other such shenanigans. The June 16th loophole, however, may offer another avenue. The FA, his old team, and a team which wishes to sign him can could enter into negotiations in which his old team agrees to sign him for terms agreeable to the FA and the new team and then immediately trades him, presumably for cash considerations or as part of another trade. Without the June 16th loophole, a FA's old team has no reason to settle for less than a draft pick, but the possibility of getting nothing for him might be a hand forcer. (Note: this type of negotiation might be specifically banned by other parts of the CBA or league rules...I'm not up enough on this stuff to say for sure.)

Part II will discuss some of the problems with Type A/B free agency, its effects on the market for different kinds of players, and the Quest for Relief.