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Free Agency: Compensation?

Discussion in the Ask the Commish forum
Free Agency: Compensation?
So, I've wanted to ask this question for a while now but I've never got around to asking it and with the off-season and Free Agency upon us, I thought now would be the perfect time to ask it.

How exactly does the "compensation pick" work in the Free Agency process in Japanese Baseball?

For example, last year Chunichi signed Kazuhiro Wada and as a result of this, Seibu took Shinya Okamoto as "compensation" for losing Wada. What types of players are teams allowed to choose as "compensation" if they lose a player via Free Agency, and are they only allowed to select one? I've never completely understood this part of Free Agency here in Japan, so any help would be appreciated.

Thanks.
Comments
Re: Free Agency: Compensation?
[ Author: westbaystars | Posted: Nov 10, 2008 1:51 PM | YBS Fan ]

There are two forms of compensation for free agents.
  1. 1.5 times the free agent's previous yearly salary [*]
  2. A player not on the protected roster
Most teams have gone the route of #1, taking the Giants' (or Tigers') cash. But the past few years have seen more teams taking a player; like the BayStars taking Kudoh for Kadokura or your example of Okamoto for Wada.

Teams taking free agents may protect up to 40 players from being a compensation pick. However, there seems to be some sort of unwritten rule about taking players still in development or veterans. That's why the Giants didn't think that the BayStars would take an established veteran like Kudoh a couple years ago. It came as a bit of a surprise to everyone that Kudoh was even off the protected list, as much so as the BayStars having the nerve to ask for him.

[* Note: I think that the rate may have gone down from 1.5 times, as there were such discussions in the past. But this is the last figure that I can remember in definitely being.]
Re: Free Agency: Compensation?
[ Author: PLNara | Posted: Nov 10, 2008 5:12 PM | HT Fan ]

The most it can be now is 80% of the player's previous salary, and it's based on how much he was making with his prior team. This old Sanspo article has some details.
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