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A team that neither exceeded the luxury tax in the preceding season nor receives revenue sharing will lose its second-highest selection in the following year's Draft as well as $500,000 from its international bonus pool. If it signs two such players, it will also forfeit its third-highest remaining pick. If that team loses a free agent, it will be awarded a Draft pick immediately following Competitive Balance Round B. The 13 clubs that fall into this category during the 2020-21 offseason are the Angels, Athletics, Blue Jays, Braves, Cardinals, Dodgers, Giants, Mets, Nationals, Phillies, Rangers, Red Sox and White Sox
Examples: A team with one pick in each round of the 2021 Rule 4 Draft would lose its second-round pick. A team with two first-round picks would lose its second-highest first round-pick.
Qualifying Offer | Glossary | MLB.com
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