Competitive Balance Draft Picks
Competitive Balance Draft picks were implemented in the 2012-16 Collective Bargaining Agreement. The process to assign picks was amended in the 2017-21 Collective Bargaining Agreement.
The 10 lowest-revenue clubs and the clubs from the 10 smallest markets are eligible to receive a Competitive Balance pick (fewer than 20 clubs are in the mix each year, as some clubs qualify under both criteria). All eligible teams are assigned a pick, either in Competitive Balance Round A or Round B. Round A falls between the first and second rounds of the Rule 4 draft, while Round B comes between the second and third.
Clubs drafting in the Competitive Balance Rounds also receive more international bonus pool money than the minimum of $4.75 million. Those drafting in Competitive Balance Round A will receive $5.25 million, while those in Competitive Balance Round B will get $5.75 million.
Unlike other Draft picks, Competitive Balance Draft picks can be traded. However, they cannot be dealt simply in exchange for cash, and can be traded only by the club to which it was awarded. In other words, the picks may be traded no more than once.
History of the rule
Under the 2012-16 Collective Bargaining Agreement, the 10 lowest-revenue clubs and the clubs from the 10 smallest markets were entered into a lottery. The first six clubs selected in the lottery received a Draft selection in Competitive Balance Round A, while the next six clubs selected received a pick in Competitive Balance Round B.