Penalties for signing players who reject their QO
Any team that signs a player who has rejected a qualifying offer is subject to the loss of one or more Draft picks. However, a team's highest first-round pick is exempt from forfeiture. (Players who are unsigned after the start of the MLB Draft in the year that follows the rejection of their qualifying offer are no longer tied to Draft pick compensation and can be signed without their new club needing to forfeit a Draft pick.)
Three tiers of Draft pick forfeiture -- based on the financial status of the signing team -- are in place to serve as a penalty for signing a player who rejected a qualifying offer:
• Competitive Balance Tax payors: A team that exceeded the CBT threshold in the preceding season will lose its second- and fifth-highest selections in the following year's Draft, as well as $1 million from its international bonus pool for the upcoming signing period. If such a team signs multiple qualifying-offer free agents, it will forfeit its third- and sixth-highest picks as well.
• Revenue-sharing recipients: A team that receives revenue-sharing money will lose its third-highest selection in the following year's Draft. If it signs two such players, it will also forfeit its fourth-highest pick.
• All other teams: If a team does not receive revenue sharing and did not exceed the CBT salary threshold in the previous season, it will lose its second-highest selection in the following year's Draft, as well as $500,000 from its international bonus pool for the upcoming signing period. If one of these teams signs two such players, it will also forfeit its third-highest pick.
(Note: Each pick in the first 10 rounds of the Draft has an assigned value, and the total for each of a club's selections equals what it can spend on signing bonuses for players selected in those rounds without incurring a penalty. When a team forfeits a Draft pick, it also surrenders the accompanying bonus pool money associated that pick, independent from any money forfeited from its international bonus pool per the rules below.)