The qualifying offer is a competitive balance measure that links free agency with draft-pick compensation and penalties.

Teams that want to obtain a compensatory Draft pick for the loss of an impending free agent can offer a one-year contract worth the average salary of the 125 highest-paid players in MLB, which is recalculated annually. Players can choose to accept and sign for the predetermined value or decline and become a qualified free agent.

Qualified free agents who sign elsewhere are attached to compensation and penalties that are determined based on CBT payor and revenue-sharing status:

2026 Team Classifications
CBT payors:  BOS, HOU, LAD, NYM, NYY, PHI, SDP, TEX, TOR
Revenue-sharing recipients:  ARI, ATH, BAL, CIN, CLE, COL, DET, KCR, MIA, MIL, MIN, PIT, SEA, STL, TBR
Others:  ATL, CHC, CHW, LAA, SFG, WSH

Compensation For Losing Qualified Free Agent
CBT payors:  pick after 4th round
Revenue-sharing recipients:  Comp B round if contract is under $50M; between 1st round and Comp A if $50M+
Others:  pick after Comp B round

Penalties For Signing Qualified Free Agent
CBT payors:  2nd, 5th + $1M international; 3rd, 6th for multiple
Revenue-sharing recipients:  3rd; 4th for multiple
Others:  2nd + $500k international; 3rd for multiple

(13) players received a $22.025 million qualifying offer:

(4) accepted:
Trent Grisham (OF, Yankees)
Shota Imanaga (SP, Cubs)
Gleyber Torres (2B, Tigers)
Brandon Woodruff (SP, Brewers)

(9) rejected and became qualified free agents:

(3) re-signed with the same team:
Kyle Schwarber (DH, Phillies) - 5 years, $150 million
Michael King (SP, Padres) - 3 years, $75 million; 2027 player opt-out
Zac Gallen (SP, Diamondbacks) - 1 year, $22.025 million; deferrals

(6) signed with a new team:
Kyle Tucker (OF, Dodgers) - 4 years, $240 million; 2028 player opt-out + deferrals
Dylan Cease (SP, Blue Jays) - 7 years, $210 million; deferrals
Ranger Suarez (SP, Red Sox) - 5 years, $130 million; 2031 mutual option
Bo Bichette (3B, Mets) - 3 years, $126 million; 2027 player opt-out
Framber Valdez (SP, Tigers) - 3 years, $115 million; 2028 player option
Edwin Diaz (RP, Dodgers) - 3 years, $69 million; 2029 conditional club option

Penalties and Compensation:

Dylan Cease to Blue Jays from Padres
TOR (CBT payor) forfeited 2nd, 5th highest pick + $1M international
SDP (CBT payor) received pick after 4th round

Edwin Diaz to Dodgers from Mets
LAD (CBT payor) forfeited 2nd, 5th highest picks + $1M international
NYM (CBT payor) received pick after 4th round; forfeited as 5th highest selection (Bo Bichette)

Ranger Suarez to Red Sox from Phillies
BOS (CBT payor) forfeited 2nd, 5th highest pick + $1M international
PHI (CBT payor) received pick after 4th round

Kyle Tucker to Dodgers from Cubs
LAD (CBT payor) forfeited 3rd, 6th highest pick for signing multiple qualified free agents
CHC (other) received pick after Comp B round

Bo Bichette to Mets from Blue Jays
NYM (CBT payor) forfeited 2nd, 5th highest picks + $1M international
TOR (CBT payor) received pick after 4th round; forfeited as 5th highest selection (Dylan Cease)

Framber Valdez to Tigers from Astros
DET (revenue-sharing recipient) forfeited 3rd highest pick; Comp B or 3rd round if former is traded
HOU (CBT payor) received pick after 4th round