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How MLB Free Agency Works: Eligibility, Qualifying Offers, and Signing Rules

MLB free agency normally follows six years of Major League service. Here’s how the offseason window, qualifying offers, and conditional draft compensation work under the 2022–2026 CBA.
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In MLB, a player ordinarily becomes eligible for free agency after six or more years of Major League service, provided he has not signed a contract for the next season. The offseason then opens a process for negotiating with the former club first and, after a defined quiet period, with any club. A qualifying offer is an optional one-year offer from a former club; accepting it means staying for that season, while rejecting it can lead to draft compensation for the former club and penalties for a signing club—but only if the CBA’s conditions are met.

Who is eligible for MLB free agency?

The ordinary threshold is six or more years of Major League service, not simply six years since a player’s debut. The MLBPA’s FAQ says: “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.” A player’s service record, rather than the number of calendar seasons in which he appeared, is what matters.

Eligibility does not mean that every free agent receives a qualifying offer. Free agency is the broader status that lets a player negotiate a contract; the qualifying offer is a separate, optional offer that a club may make to certain eligible players.

When can a free agent negotiate and sign?

The CBA sets a post-season quiet period. During that period, a player may negotiate with his former club. When the period expires, he may negotiate and sign with any club, subject to the agreement’s rules. The specific calendar dates are tied to the World Series and vary by offseason, so check the applicable season’s announcement rather than treating one year’s dates as permanent.

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The MLBPA’s 2022–2026 CBA, including Article XX, governs this process as of October 4, 2026. It does not make free agency an immediate free-for-all on the day a season ends: the quiet period and other CBA conditions still apply.

What is a qualifying offer?

A qualifying offer (QO) is an optional one-year contract offer from a player’s former club. Under Article XX of the CBA, its salary is set at the average salary of the 125 highest-paid players. That formula is recalculated annually, so the dollar amount is not fixed.

A club may make a QO only to a qualified free agent who meets the CBA’s conditions. In particular, the player must never have received a QO before, and he must have been continuously under reserve to that same club—at either the Major League or Minor League level—since Opening Day of the completed season. MLB’s glossary also identifies in-season acquisitions as ineligible. A club is not required to make an offer even when a player qualifies.

For the 2025–26 offseason, MLB reported a QO value of $22.025 million for one year. That is the 2026 qualifying-offer amount, not a standing amount for later offseasons.

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What happens if a player accepts or rejects the offer?

If the player accepts

He signs a one-year contract with the former club at that offseason’s QO value. Acceptance settles the player’s next-season contract under the offer; the draft-compensation scenario associated with rejecting a QO does not apply.

If the player rejects

He remains free to pursue a contract with any club. Rejection does not itself force him to return to his former team, nor does it guarantee that the former club will receive compensation. Compensation depends on what happens next: the former club must have made the offer, and the player must sign a Major League contract by the deadline specified in the CBA. Signing a bona fide Minor League contract does not trigger the compensation system. The CBA also covers a player who signs elsewhere before the QO acceptance period ends.

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How do draft compensation and signing penalties differ?

There are two separate sides to the compensation system. The former club may receive a draft pick; the new club that signs the player may forfeit draft selections and, in some cases, international signing-pool money. The outcome depends on each club’s classification, so the former club’s pick is not the same thing as the signing club’s penalty.

Club or condition What the CBA provides
Former club that is a Competitive Balance Tax payor Receives a compensation pick after the fourth round.
Former club that is a qualifying revenue-sharing recipient; new contract guarantee is at least $50 million Receives a compensation pick after the first round.
Former club that is a qualifying revenue-sharing recipient; new contract guarantee is below $50 million Receives a compensation pick after Competitive Balance Round B.
Other former clubs Receive a compensation pick after Competitive Balance Round B.
Club signing a player who rejected a QO Forfeits draft selections and may lose international signing-pool money under rules based on the signing club’s classification. MLB says the first-round selection with the highest value is protected.

These consequences apply only when the compensation conditions are met; a rejected offer by itself is not enough. MLB’s glossary also says the signing-club compensation restriction ends when the following MLB Draft begins.

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What is changing—and what is still the rule?

The 2022–2026 MLB CBA is in force as of October 4, 2026, and the MLBPA says it expires on December 1, 2026. MLB reported that successor-agreement negotiations began on May 12, 2026. Any proposed changes to free agency remain proposals unless and until a new agreement adopts them, so the rules above describe the current CBA rather than a possible successor.

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