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flag MLB penalizes teams signing rejected qualifying offer free agents with draft pick losses in 2026, based on contract value and team finances.

flag In 2025, MLB teams signing free agents who rejected qualifying offers face draft pick penalties in 2026, with the severity based on the player’s contract value and the team’s revenue-sharing and luxury tax status. flag Teams receiving revenue sharing lose their third-highest pick, while non-revenue-sharing teams not paying the competitive balance tax surrender their second-highest pick and $500,000 from their international bonus pool. flag Teams losing such players receive compensatory picks, typically in the 70th–75th range or after the first round, depending on contract size and team classification. flag The system remains in place until the next Collective Bargaining Agreement, sparking debate over fairness and competitiveness, especially for smaller-market clubs.

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