If your concern is that the compensatory pick formula has devolved into a viscious cycle where the same teams consistently receive picks to the detriment of other teams, I do not see how the proposal will change that. All that will change will be which teams consistently get more picks. If a team builds through the draft (using some of the draftees for themselves and trade others for established players to fill out the team) they will not have to target FA's and in the meantime will have a low enough salary where they consistently get extra picks. The rich teams, without the draft picks to replenish their team after another player leaves will be forced to spend more money on Free Agents, and thus driving up their payroll, which will result in fewer picks and the cycle repeats itself. A better solution would be to classify all FA's as A, B, or C without regard to whether they are offered arbitration. If a team loses an A FA they get a pick after Round 1, a B gets a pick after Round 2, and a C gets a pick after Round 3. In addition teams will still lose picks for signing a Type A FA but the round in which it will start will be changed so that if you pick in the Top 10 you cannot lose any pick in the first two rounds, if you are in the Top 20 you cannot lose your first round pick, and if you pick from 21-30 your 1st round pick is not protected
