Special offer. See more information about Outbyte and uninstall instructions. Please review EULA and Privacy policy.

iTechGuides is reader-supported. When you buy through links on our site, we may earn an affiliate commission. As an Amazon Associate I earn from qualifying purchases. Learn more

Most MLB players become eligible for free agency after at least six years of Major League service, provided they have not signed a contract for the next season. A qualifying offer (QO) is a separate, optional one-year offer that some teams can make to eligible players. Accepting it means signing for the stated salary; rejecting it leaves the player free to sign elsewhere, but can trigger draft compensation for the former club and penalties for the signing club.

When does an MLB player become a free agent?

The ordinary threshold is six or more years of Major League service—not simply six calendar years since a player’s debut or six seasons on an MLB roster. The MLBPA FAQ states that players with six or more years of Major League service who have not signed a contract for the next season are eligible to become free agents.

Free agency also follows a seasonal process. After the World Series, a post-season quiet period gives a player the opportunity to negotiate with his former club. When that period expires, he may negotiate and sign with any club, subject to the collective bargaining agreement. The calendar dates are tied to the World Series and can change each offseason, so check MLB’s announcement for the relevant year rather than relying on a date from a prior season.

Special offer. See more information about Outbyte and uninstall instructions. Please review EULA and Privacy policy.

What is a qualifying offer?

A QO is an optional, one-year contract offer from a player’s former club. It is not required for every free agent, and a player is not eligible to receive one merely because he has reached free agency. Under Article XX of the 2022–2026 Major League Baseball (MLB) collective bargaining agreement (CBA), the salary is set using the average salary of the 125 highest-paid players. That formula is recalculated annually; it is not a permanent dollar amount.

The former club may make a QO only to a qualified free agent who has never received one before and who has been continuously under reserve to that same club, at either the MLB or Minor League level, since Opening Day of the completed season. MLB’s current glossary says players acquired during the season are ineligible.

What happens if a player accepts or rejects the offer?

Decision What it means
Accepts The player signs a one-year contract with his former club for that offseason’s QO salary.
Rejects The player remains free to negotiate and sign with any club. If the agreement’s compensation conditions are met, the former club may receive a draft pick and the new club may face penalties.

For the 2025–26 offseason, MLB set the QO at $22.025 million for one year. That figure applies to the 2026 season; the amount changes annually. MLB’s report on that offseason said 13 players received offers and four accepted before the November 18, 2025 deadline. Those counts describe that offseason, not a standing rule.

When does rejecting a QO lead to draft compensation?

Rejecting an offer alone does not settle the compensation question. The relevant conditions include whether the former club made the QO, whether the player declined it—or signed elsewhere before the acceptance period ended—and whether he signs a Major League contract by the CBA deadline. A bona fide Minor League contract does not trigger this compensation.

Special offer. See more information about Outbyte and uninstall instructions. Please review EULA and Privacy policy.

There are two distinct consequences: the former club may receive a pick, while the club signing the player may surrender draft selections and, in some cases, international signing-pool money. The former club’s pick placement depends on its classification and, for qualifying revenue-sharing recipients, the total guarantee in the player’s new contract.

Club affected Possible consequence under the CBA
Former club that made the QO A club that pays the Competitive Balance Tax (CBT) receives a pick after the fourth round. A qualifying revenue-sharing recipient receives a pick after the first round if the new contract’s total guarantee is at least $50 million; otherwise, it receives one after Competitive Balance Round B. Other clubs receive a pick after Competitive Balance Round B.
Club signing the player It may forfeit draft selections and may lose international signing-pool money. The consequences depend on the signing club’s classification and how many QO-rejecting free agents it signs. MLB says the first-round selection with the highest value is protected.

MLB’s current glossary says the QO compensation restrictions end when the following MLB Draft begins. Because both the contract deadline and club classifications matter, the former club’s reward should not be confused with the signing club’s penalty or treated as identical for every team.

How to assess a particular player’s situation

  1. Check service time. Confirm whether the player has at least six years of Major League service and has not signed a contract for the next season.
  2. Check QO eligibility. Determine whether the player has previously received a QO and whether he stayed under reserve to the same club from Opening Day through the completed season, including time in the minors.
  3. Check the decision and timing. Establish whether he accepted or declined, when the acceptance period ended, and when any new contract was signed.
  4. Check the contract type and clubs. A Major League contract can trigger compensation if signed by the CBA deadline; a bona fide Minor League contract does not. Then identify both clubs’ relevant classifications and, for the former club’s revenue-sharing tier, whether the new guarantee reaches $50 million.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Support on Ko-Fi

Which rules apply during the 2026 offseason?

As of October 4, 2026, the 2022–2026 CBA governs these rules and is set to expire December 1, 2026, according to the MLBPA FAQ. MLB reported that successor-agreement negotiations began May 12, 2026. Proposals discussed in those negotiations—including possible changes to free agency—are not current rules unless they are adopted in a new agreement. For the detailed process, consult Article XX of the MLBPA’s 2022–2026 CBA, the MLBPA FAQ, and MLB’s current qualifying-offer glossary and offseason announcements.

Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.

Special offer. See more information about Outbyte and uninstall instructions. Please review EULA and Privacy policy.