Since 2017, Major League Baseball has used a formula that combines revenue, winning percentage and market score to award Draft picks to teams that fall in the bottom 10 in revenue or market size. In 2023, there were 14 teams awarded picks in the two rounds: eight in Round A and six in Round B. The same 14 teams will have picks in those rounds in 2024, with six in Round A and eight in Round B.
Competitive Balance Round A takes place after the completion of the first round, while Round B is held after the second round is over. The order of the picks within each round is determined by order of finish in the previous year’s standings, best down to worst. That order is as follows:
Pick numbers are subject to change based on trades and qualifying free-agent signings. Competitive Balance round picks are the only MLB Draft picks that can be traded. It remains to be seen how signings will impact the overall Draft order, with all seven of the free agents who were given qualifying offers turning them down. Since this system began in 2012, only 13 of the 131 free agents to receive a QO have accepted it.
Players who accept qualifying offers are signed with their teams for the next season at the designated value. Those who don’t accept remain free agents, and if a new team signs them, their old team receives Draft pick compensation. Thus far, only one player has signed with a new team. The Twins will get a pick in between Round 1 and Competitive Balance Round A due to Sonny Gray signing with the Cardinals. The Phillies extended a qualifying offer to Aaron Nola but do not get a compensation pick, because they subsequently re-signed Nola to a multiyear deal.
Here are the remaining unsigned free agents who declined the QO and what compensation each team would get:
Angels -- Shohei Ohtani: Pick after Competitive Balance Round B
Blue Jays -- Matt Chapman: Pick after Round 4
Cubs -- Cody Bellinger: Pick after Competitive Balance Round B
Padres -- Blake Snell: Pick after Round 4
Padres -- Josh Hader: Pick after Round 4