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What is the MLB Competitive Balance Lottery? (Diamondbacks pick 3rd) | July

Major League Baseball held its first competitive balance lottery on July 18th, which is designed to help smaller market/smaller revenue teams by giving them extra draft picks.  The lottery began with the 10 teams ranked smallest in market size, and the 10 teams that ranked smallest in revenue. Because of overlap between the two groups, this led to a list of 13 teams - Athletics, Brewers, Cardinals, Diamondbacks, Indians, Marlins, Orioles, Padres, Pirates, Rays, Reds, Royals, and Rockies.  These 13 teams were put into a weighted lottery, based on 2011 records, for 6 picks in Compensation Round A, which will take place at the end of the First Round in the June 2013 draft (Picks #32-37).  The results of the lottery were as follows:

Compensation Round A (after Round 1):
1. Royals (#32 Overall)
2. Pirates (#33 Overall)
3. Diamondbacks (#34 Overall)
4. Orioles (#35 Overall)
5. Reds (#36 Overall)
6. Marlins (#37 Overall)

The Orioles had the best chance for the first pick (12.4%), follwed by the Padres and Royals at 11.1%. The Diamondbacks actually had the fewest ping pong balls in the lottery (2.6%), but still acquired the 3rd pick. Round A picks are valued between $1.39M and $1.55M, and will add to those teams' draft pools.

The seven teams that did not win this lottery were placed in a second lottery for Compensation Round B, which will take place after the Second Round. The Tigers were added to the pool for Round B, as a team that receives revenue sharing money, but that did not meet the other two criteria.  The results for Round B were:

Compensation Round B (after Round 2):
1. Padres
2. Indians
3. Rockies
4. Athletics
5. Brewers
6. Tigers

The Round B picks are valued between $700K - $758K. Two teams, the Rays and the Cardinals, did not get a pick in either round.  One very interesting thing about Compensation Round picks is that they can be traded anytime during this season or next season until two hours before the draft.  Picks can only be traded by the team that originally acquired them, and they cannot be traded during the Winter Meetings. For teams that are in the playoff hunt, such as the Pirates and Reds (and the Diamondbacks?), these newly acquired picks could be used to acquire players to help during the stretch run.