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The Type A/Type B free-agent compensation system will be eliminated under baseball's new collective bargaining agreement. In the final offseason of the old system, MLB and the MLB Players Association made some modifications.

The compensation for Type A free agents remains the same: A first-round pick from the signing team, as well as a supplemental first-round choice. Clubs that finished in the bottom half of the major league standings have their first-rounders protected from compensation, and teams can't lose consolation picks for failure to sign players from the previous draft. If a club signs multiple Type A free agents, the team that lost the higher-ranking player gets the better choice.

Six Type A free agents (Heath Bell, Michael Cuddyer, Kelly Johnson, Ryan Madson, Francisco Rodriguez, Josh Willingham) were designated as modified Type A free agents. Rather then getting a pick from the signing team, the former club will get a a choice immediately preceding that pick along with the normal supplemental first-rounder.

Five more Type A free agents (Matt Capps, Francisco Cordero, Octavio Dotel, Ramon Hernandez, Darren Oliver) were declared Type B free agents, with the caveat that their former club didn't have to offer them arbitration to receive compensation. All other qualified free agents required an arbitration offer by Nov. 23 to return compensation.

Below is the team-by-team listing of compensation free agents, with their Type in free agents. Modified Type A free agents are indicated with an A*. There has been no offical word whether the Tigers offered arbitration to Type B free agents Wilson Betemit and Magglio Ordonez, so they're not included.

The list doesn't including one Type A free agent (Jonathan Papelbon) and four Type B free agents (Rod Barajas, Clint Barmes, Ryan Doumit, Mark Ellis) who signed before the Nov. 23 deadline. More on them in a moment.

Potential Compensation Free Agents
Athletics: Josh Willingham (A*), David DeJesus (B).
Blue Jays: Kelly Johnson (A*), Frank Francisco (B), Jose Molina (B), *Jon Rauch (B).
Brewers: Prince Fielder (A), Francisco Rodriguez (A*).
Cardinals: Albert Pujols (A), Octavio Dotel (B), Edwin Jackson (B).
Cubs: Carlos Pena (B), Aramis Ramirez (B).
Mets: Jose Reyes (A).
Padres: Heath Bell (A*), Aaron Harang (B).
Phillies: Jimmy Rollins (A), Ryan Madson (A*), Raul Ibanez (B).
Pirates: Derrek Lee (B).
Rangers: C.J. Wilson (A), Darren Oliver (B).
Red Sox: David Ortiz (A), Dan Wheeler (B).
Reds: Francisco Cordero (B), Ramon Hernandez (B).
Twins: Michael Cuddyer (A*), Matt Capps (B), Jason Kubel (B).
White Sox: Mark Buehrle (B).

Five supplemental first-round picks already have been created for the free agents who changed teams before the arbitration-offer deadline. The Red Sox will receive the 31st and final pick in the first round from the Phillies, who signed Papelbon, and currently have the top sandwich pick. The supplemental first-round order as of now:

Supplemental First Round Order
32. Red Sox (Jonathan Papelbon, A, to Phi)
33. Astros (Clint Barmes, B, to Pit)
34. Pirates (Ryan Doumit, B, to Min)
35. Rockies (Mark Ellis, B, to LAD)
36. Dodgers (Rod Barajas, B, to Pit)

We'll track changes to the draft order throughout the offseason in our Ask BA column.

Jim-

do you think the new rules will cause picks in rounds 3-10 to sign later? If a team were to have a difficult sign in rounds 1 or 2, why would it risk money on a lower pick when the team doesn't know how much the high pick would cost? It seems to me that teams wouldn't want to commit a percentage of the capped bonuses on lower round players when the 1st couple of rounds are unsigned.

Also-don't the new rules hurt college players on partial scholarships? With more high end HS players going to college, it seems those players would command more full scholarships, reducing the $ for lesser players.

Posted by dave | November 25, 2011 at 5:08 pm | Shortcut

I've always wondered how the ordering of supplemental first round picks was determined. Anybody know?

Posted by colin | November 25, 2011 at 7:41 pm | Shortcut

Dave: They may cause more picks in rounds 3-10 to not sign at all, for the reasons you state. I think the more aggressive teams will try to load up on their early-round picks and do what it takes to sign them. If there’s not money left over for later picks, so be it. Just to use two guys as an example from last year’s draft, I still think the Jays would have found a way to sign Daniel Norris in the second round, and likewise for the Padres with Austin Hedges. If they had to pass on later picks, so be it.

Posted by Jim Callis | November 25, 2011 at 7:46 pm | Shortcut

Colin: It has changed a little bit over the years, but at this point the three things to remember are: 1) Type A picks come before Type B picks; 2) picks are in reverse order of the major league standings (and not tied to the quality of free agents lost); and 3) within the separate Type A and Type B groupings, every team with a choice picks once before any club gets a second pick. We’ll have to see how the competitive-balance lottery picks in the supplemental first and supplemental second rounds are ordered, but I bet they are assigned in reverse order of the standings as well.

Posted by Jim Callis | November 25, 2011 at 7:49 pm | Shortcut

The Lottery picks start this year? Seems like there might be two rounds worth of added picks at the top of the draft. Would have made more sense to do the lottery picks stating next year, when the compensation picks are greatly reduced.

Posted by keith | November 25, 2011 at 9:57 pm | Shortcut

Jim…thanks for the note. With regards to 1) A's come before B's, does that mean A's come before Modified Type A's which come before Designated Type B's that were originally Type A's which come before Type B's? Ha ha……

Posted by colin | November 25, 2011 at 10:48 pm | Shortcut

Keith, believe that’s the case.

Posted by Jim Callis | November 26, 2011 at 12:39 am | Shortcut

I believe the modified Type As are treated like any other Type As when it comes to sandwich-round order. Type As turned into Type Bs are treated like other Type Bs.

Posted by Jim Callis | November 26, 2011 at 12:40 am | Shortcut

Hi Jim – what would happen if say Houston (or any of the top ten) signed one of the A* free agents?

Posted by Dan | November 26, 2011 at 11:59 am | Shortcut

Is the Scott Boras loophole from 15 years ago still around? The one where draft picks could become free agents if not offered a contract by the deadline?

Posted by josh | November 27, 2011 at 11:35 am | Shortcut

Can you confirm that if a first round pick doesn't sign that 1.) The team will get a compensation pick the next year and 2) The team can use the "slot" value of that pick to sign other picks? If this is the case then it would make sense to not sign any picks that can net a team a compensation pick the following year. Each year a team can use its previous years picks (starting next year) and save its current picks for the next year – thus increasing their draft budget by several million each year.

Posted by Josh | November 27, 2011 at 6:24 pm | Shortcut

Josh, re unsigned first-rounders: I believe that’s the case and others have pointed out that loophole. Not sure you’ll see teams pick players for the express purpose of not signing them, though.

Posted by Jim Callis | November 28, 2011 at 10:58 am | Shortcut

Josh, re the loophole: Yes, but no team is going to let that happen.

Posted by Jim Callis | November 28, 2011 at 10:59 am | Shortcut

Dan, re top 10 pick teams signing a modified Type A: The PDF attached to the CBA press release expressly states that instead of the former club getting the new team’s pick, they will get a choice immediately ahead of the pick the new team would have given up. So if the Astros sign a modified Type A, his former club will get the first pick in the second round.

Posted by Jim Callis | November 28, 2011 at 11:20 am | Shortcut

Im just wondering if a team like the Yankees takes a risk on a Josh Bell type unsignable pick and then intentionally allows him to become a free agent so that they can throw more money at him after the singing period ends, while saving more of their pool money for other picks.

Posted by Josh | November 28, 2011 at 11:39 am | Shortcut

An update on my comment about the loophole of not signing top picks and getting to spend that twice: No loophole. Had a club exec tell me if you don’t sign a player, you lose his cap space.

Posted by Jim Callis | November 28, 2011 at 12:46 pm | Shortcut