• Competitive Balance Lottery Today

    Posted by on July 18th, 2012 · Comments (6)

    Via MLB.com

    Now that Major League Baseball has gone through its first Draft and signing period under the new rules of the Collective Bargaining Agreement, it’s time to move on to the next phase of the new system: the Competitive Balance Lottery.

    The lottery, scheduled to take place Wednesday at 1:30 p.m. ET in New York, is a mechanism designed to help teams perceived to need the most assistance by awarding extra Draft picks to some of them. The 10 smallest-market teams and 10 lowest-revenue teams will have the chance to win one of six extra selections in the 2013 First-Year Player Draft.

    Those half-dozen picks will be made at the conclusion of the first round, following the compensation selections. Because there is obvious crossover between those two groups, there are 13 teams entered into the first-round lottery: the D-backs, Orioles, Indians, Royals, A’s, Pirates, Padres, Rays, Reds, Rockies, Marlins, Brewers and Cardinals. The odds of winning a Draft pick will be based on each team’s winning percentage in the previous season.

    There will be a second group of six picks, to be made after the conclusion of the second round. The teams from the first group that did not get one of the early picks will be re-entered, along with any other Major League team that receives revenue sharing. This year, only one team — the Tigers — will be added to the second lottery. The Competitive Balance Lottery winners and the order of their picks will be unveiled on MLB Network’s “The Rundown” at 2:45 p.m. ET.

    “[We just finished] off the first Draft with the new CBA,” Pirates assistant general manager Greg Smith said. “No club, no scouting director, no scout had gone through that landscape [before]. The Competitive Balance picks will be the same thing. Clubs value Draft picks and the ability to have them, to add to them, even to trade them. As you try to acquire talent through the Draft or if you’re trying to improve the big league club, then the picks become a part of that process.”

    Smith brought up one of the more intriguing aspects of this new process — the picks that come out of it are commodities. For the first time in Major League history, Draft picks can be dealt. But there are a series of conditions and limitations regarding such transactions.

    Only a team that wins a pick in the lottery can trade it, meaning that selection can be traded just once. It can’t be sold for cash, and it may only be dealt during the season. Trading can commence the day after the lottery is held and is allowed until the end of that regular season. So seeing a lottery pick or two involved in some July 31 Trade Deadline deals is a possibility. They cannot be included in any Winter Meetings deals, however, with trading of picks again permitted at the beginning of the following regular season.

    So the Pirates, or any team that might be involved in Deadline deals this month, can use a pick they receive in this lottery in their trade negotiations. How the picks are valued might vary from team to team, and trying to get a sense of their worth in an open market definitely falls under the “to be determined” category, but it does add something to the trading landscape.

    It will be interesting to see if any of these picks do get traded.

    Comments on Competitive Balance Lottery Today

    1. MJ Recanati
      July 18th, 2012 | 4:47 pm

      Detroit got a pick in the second round. What complete bollocks that is. How a team supporting a $150M payroll can be deemed to require assistance through a competitive balance lottery is inexplicable to me.

    2. Raf
      July 18th, 2012 | 6:42 pm

      @ MJ Recanati:
      I guess the Tigers received a revenue sharing payout? I don’t know…

    3. Raf
      July 18th, 2012 | 6:47 pm


      The original 13 teams entered into the lottery were a combination of the 10 lowest revenue clubs and 10 lowest market teams. The Tigers were added to Round B because they were the lone team not in the original group that receives revenue sharing money.

    4. MJ Recanati
      July 20th, 2012 | 8:24 am

      @ Raf:
      The Tigers DID receive revenue sharing. My question/comment is why they’d be eligible to do so. They earn the 11th highest revenue in baseball and they have a payroll over $100M. Why would they need revenue sharing if they’re making money and very clearly comfortable with spending it?

    5. Corey
      July 23rd, 2012 | 11:37 pm

      It will be interesting to see if any of these picks do get traded.

    6. July 24th, 2012 | 8:48 am

      Yup. That did not take long.

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