What is a qualifying offer? Who are the MLB free agents who have received offers?

As the 2023 season approaches, the lookout for the free agency market is growing. Many star players who were pivotal in their respective teams’ success this season have already become free agents or are expected to enter the process soon. It is an essential time for teams to make strategic decisions regarding their rosters for the upcoming season.

So far, seven teams around the league have made qualifying offers to their former players. These offers are made to retain the player’s services for at least one more season.

What is a qualifying offer?

The qualifying offer system is implemented in the 2022-26 CBA to balance the issue of losing draft picks due to free agency. It works as a tit-for-tat element, designed to be eliminated if the league agrees to an International Draft. However, since the owners disapproved of the idea, the Qualifying Offer system remains in place. Its purpose is to provide a fair system for players and teams by offering a one-year contract to free agents that meets or exceeds a predetermined salary threshold.

Under the Qualifying Offer (QO) system, a baseball club can receive compensatory draft picks for losing a free agent. To do this, the club must make a qualifying offer of a one-year contract, which is the average of the 125 highest-paid players in the MLB. However, the player must meet specific criteria to be eligible for this offer. They must have never received a qualifying offer before and spent the entire season on the team’s roster.

The player can either accept or decline the offer. If they decline and sign with a new team, their original team will receive draft pick compensation. The position of that draft pick is determined by complicated formulas based on the player’s salary and luxury tax positioning.

Furthermore, the team that signs the player must also give up a draft pick. The calculations for this are also complex.

This year’s qualifying offer is $20.325 million for a single-season contract.

Who has received QOs?

Who is likely to accept?

The players are given 10 days to decide whether they want to accept a qualifying offer that has been presented to them. The offer is evaluated based on certain factors, including the player’s value and the current market trends. However, it is highly unlikely that many of the top players will accept the offer since their value is expected to exceed the offered amount significantly.

In fact, all predictions indicate that for the first time since the off-season 2017-18, no offer will likely be accepted by any player due to the gap between the offered amount and the players’ market value. This situation is not unusual in the industry, where players often have to weigh the pros and cons of accepting a deal that may not be in their best interest.