Compensation Pick

A compensation pick is an additional draft choice awarded to an MLB team as a benefit for losing a valuable free agent player to another team. It’s like a bonus pick in the draft process, positioned at a specific spot based on the free agent’s previous contract and signing details. The purpose is to help the original team recover some of the talent or value they lost when their player departed. This system encourages teams to develop and retain players, knowing they might receive a compensation pick if the player leaves in free agency.