Maybe this is a stupid idea, or one that would be impractical to implement, but Ive given it some thought, let me know what you think. First, let me address what I feel are some of the problems with the current draft/FA compensation system. 1. It hurts the players. No, not the A-Rods or the world, but the Graffy's of the world, and most likely someone like Mench or Jenkins. The reason being is that talent wise they may be worth a 2 or 3 year deal at "market value" for the sake of argument lets call it 5 million a year. However, they may not be worth losing a draft pick for, so teams do not offer them a contract and they accept arbitration and get a one year deal worth 4.5 million. They could be leaving millions on the table because of the draft pick implications. 2. It helps Big Market teams more than Small market teams. For as long as I can remember teams like the Red Sox, Yankees, Braves, Mets, Cardinals, etc, etc have had a lot of picks late in the first round and in the sandwich round. That is because a. to get those picks you have to offer a player arbitration Large market teams can offer any and all of their FAs arbitration without fear of the player accepting arb, because if they do, the large market team can absorb the hit in salary for a player they didnt really want. Small market teams may not offer a player arby because they wouldnt be able to pay him for one year even if he did accept (Vlad Guerrero comes to mind); and b. Large market teams in the hunt for the playoffs often trade for FAs to be and with the addition of the player for the stretch run they acquire two high draft picks as well. The way it inevitably ends up is a team like the Royals or Reds may have a top 10 pick, but then not pick again until the 50s or 60s, while the Yankees and Red Sox may not pick until the 20s but have 4 picks before the Royals make their second selection. With the high flame out rate of MLB draft picks, even 1st rounders, having 4 picks in the top 50 is much better than having picks 5 and 60. The only current protection for small market teams is that they cannot lose their first round pick if they pick in the first half of the round. This is based on the record of a team. Essentially what you are doing is REWARDING poor team mangement and penalizing good team management. Look at the Cubs, they pick what, 3rd this year? Like they need their pick protected, meanwhile the A's and Twins are handcuffed because they finish in the top half of the league. My system would be based on the end of the year payrolls. I would also keep the tiers of FAs as they are now, but probably eliminate the Class C FA pool, if it hasnt been already. The rules would be as follows. TIER 1 TEAMS - Teams finishing the year in the bottom third of the league in payroll (21-30) can sign any free agent they want without losing ANY draft picks. Once they sign the free agent, the team that loses the player, if they are in the bottom two thirds of the league in payroll (11-30), will receive 1 pick in the sandwhich round between rounds 1 and 2 if the player is a type A player. If the player is a type B player, the team losing the player is awarded a sandwhich pick between rounds 2 and 3. if the player is from a TIER 3 TEAM, that team will receive no compensation. TIER 2 TEAMS - Teams finishing the season in the middle third of the league in payroll (11-20) cannot lose their first round draft pick if they sign a free agent. They can lose a 2nd round pick, or 3rd, down the line depending on how many FAs they sign. The team losing the free agent to a team in this TIER 2 would be compensated as follows: TIER 1 and TIER 2 TEAMS losing a Type A free agent would receive two picks, one pick in the sandwhich round between rounds 1 and 2 and the 2nd round pick of the signing team. Tier 1 and Tier 2 teams losing a Type B Free Agent would receive a sandwhich pick in between rounds 2. TIER 3 TEAMS - Teams finishing the year in the top third of the league (1-10 in payroll) CANNOT receive draft compensation for ANY lost Free Agents. They would also LOSE their first round draft choice if they signed a TYPE A free agent, and their second round draft choice if they signed a TYPE B free agent, etc. etc. I have other ideas that go into more detail, such as, if a TIER 3 teams signs multiple FAs, the team losing the FAs would receive two sandwhich picks, one in between rounds 1 and 2, one in between 2 and 3, if the pick from the TIER 3 team would be in the third round or later, etc. etc. Now, one might say that you are awarding a team that is being cheap, and penalizing the team that is spending money. This is not true. What you are doing is giving the small market team incentive to sign players away from the larger market teams without losing their bread and butter (i.e. draft picks to build for the future) meanwhile, teams like the Angels and Yankees are not going to STOP signing players to insane deals simply because they dont get as much, or any, draft compensation. Those teams are not at all about the draft, never have been. They rely more on international scouting in the Domincan Republic, Japan, Venezuela, etc. Ok, tear it apart...