Free Agency
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The Free Agency everyone talks about
A player becomes eligible for Major League Free Agency if he meets the following conditions:
- The player must have accumulated six full years of Major League service time
- The player's contract must have expired or in other words he must not have a contract for the upcoming season
If a player meets the above conditions, he is considered eligible for free agency. He is free to sign with any of the 30 Major League teams after a 15-day period in which he may only sign with his former team. This period is also the time in which a player must file the necessary paperwork with MLB to become a free agent if he is eligible to do so. The period normally begins on the day immediately following the conclusion of the World Series or October 15, whichever is later. Again, during the 15 days, a player can only negotiate with his former team.
Election of free agency is communicated by telephone or any other method of communication by the Player to the MLBPA. Written notice of such election is then be given within the specified time limits by the Association, on behalf of the Player, to a designated representative of the MLB LRD and, effective upon receipt, the Player shall become a free agent.
During the 15-day election period, players may talk with any club about: the Player's interest in playing for the Club, and the Club's interest in having the Player play for it; the Club's plans about how it intends to utilize the Player's services (as a starting pitcher or reliever, as a designated hitter or not, platooning, etc.); the advantages and disadvantages of playing for the Club including the nature of the organization, the climate of the city, availability of suitable housing, etc.; length of contract; guarantee provisions; and no-trade or limited no-trade provisions. Terms or contract cannot be negotiated during this period expect with the original team.
On December 1st, teams must chose to offer arbitration to their free agents. In 2005, the last date to offer arbitration to a free agent was December 7th at 9:00PM PST. If the player's former club does not offer arbitration to him, then the team may continue to negotiate with him, but can not receive compensatory draft picks if he signs elsewhere.
On the other hand, if a free agent is offered arbitration by his former team then he may continue negotiating with that team and all others through at least December 7th. On this date, the player must decide whether to accept or decline the offer to go to salary arbitration.
If he accepts arbitration he is officially considered a signed player and added back to a team's 40-man roster. In 2005-2006, only two free agents (Travis Lee and Tony Graffanino) chose this option. The player and team may continue to negotiate, but if no deal is reached by a hearing date scheduled for sometime in the first three weeks of February, a panel of three arbiters (also can be called an arbitrator) decides on the player's salary. The arbiters decided between two salary proposals. One is a figure from the player's side and from the team management's side. They figures are exchanged in mid-January and cannot be modified. The arbiters decision is binding and the player is given a standard non-guaranteed one-year contract for the determined salary with no opportunity to earn performance or award bonuses.
If he declines to go arbitration, the team is still free to sign the player, but the player is also still free to sign with any of the other 29 clubs.
See Drafts for information on compensatory draft picks and more explanation of the information that follows:
Clubs are limited in the number of Type A and B Players they may sign to contracts. The number of signings permitted is related to the number of Players electing free agency. If there are 14 or less such Players, no Club may sign more than one Type A or B Player. If there are from 15 to 38 such Players, no Club may sign more than two Type A or B Players. If there are from 39 to 62 such Players, no Club may sign more than three Type A or B Players. If there are more than 62 such Players, the Club quotas shall be increased accordingly. There are no restrictions on the number of unranked Players that a Club may sign to contracts.
Club are eligible to sign at least as many Type A and B Players as it may have lost through Players having become free agents under this Section at the close of the season just concluded.
Any Club signing a contract after the expiration of the election period with a Player may not assign his contract until after the next June 15. The contract may be assigned for other Player contracts and/or cash consideration of $50,000 or less prior to the next June 16 if the Player gives written consent to such transaction.
There is no restriction or interference with the right of a free agent to negotiate or contract with any baseball club outside the structure of organized baseball, nor shall there be any compensation paid for the loss of a free agent except as provided for in the CBA.
Other forms of Free Agency
Released
A player can also become eligble for free agency if he is released.
Election or Declaration
A player can elect or delcare free agency when:
- His contract stipulates he may to do so. Some minor league contracts, especially for non-roster invitees stipulate that the player may ask for his release or declare free agency if he is not added to the Major League roster by a specific date.
