The qualifying offers — one year for $17.4 million — will ensure some level of compensation should Hosmer, Moustakas or Cain sign elsewhere. All three players are expected to decline the offer and search for a multi-year contract on the open market. The size of those deals will dictate what kind of compensation the Royals receive in return.
Compensation rules under the latest collective-bargaining agreement are complicated and dependent on where teams fall in revenue sharing. But here are the important parts: The Royals will receive a compensatory, or additional, draft pick following the first round if a player declines a qualifying offer and signs a contract of more than $50 million. If the players declines the qualifying offer and signs for less than $50 million, the compensation pick will come after Competitive Balance Round B, which follows the second round.
http://www.kansascity.com/sports/mlb/kansas-city-royals/article182190546.html
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