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Teams must make offers to free agents to get picks
SAN FRANCISCO -- In order to receive Draft choice compensation for losing free agents, Major League teams will have to make a qualifying offer of at least $13.3 million.

Teams have until 5 p.m. ET on the fifth day after the World Series ends to make the offer; players have 48 hours after that to accept. MLB and the Major League Baseball Players Association calculated the number based on the average of the 125 highest existing contracts as determined by average annual value.

If a player rejects the offer and signs with another team before the June Draft, his former club will receive an additional pick at the end of the first round. The signing club forfeits its first-round pick. Exception: If that pick is in the top 10, the signing club gives up its next highest pick.

Prior to this season, compensation was based on a system of classifying players as Type A or Type B based on their statistics the previous two seasons. That format had been used since 1981.

Paul Hagen is a reporter for