When you acquire a player (through draft or trade), he falls into one of three categories: He is under contract to a real-life AL team, he is under contract to an NL team or he owned by neither.

1. If he is in the AL, he is not eligible for compensation due to failing to adhere to the "unexpected loss" principle which governs the system. Such players will be listed as "pounded" and will be listed with a "#" symbol next to their names on league rosters and draft lists. The only way a player can lose his pounded status is if he returns to the NL during the season he was pounded; otherwise, you lose all rights to this player after the season.

2. If a player  is in the NL or is a free agent and his last major league team was in the NL when you acquire him, he now falls into one of the following categories:

a) He has an NL card only this year;
b) He has an AL card only this year;
c) He has both NL and AL cards this year;
d) He has no card this year.

If he falls into category a), you had the right to either keep him as one of your protected players after the season or let him go back into the draft.

(If he has returned to the AL or does so before our draft, he will not be eligible for compensation by whomever drafts him.)

If he falls into category b), you still control him when the compensation draft comes around. At that time you will choose between seeking compensation (the players entering the NL from the AL) or keeping Retainer Rights. You'll do one, and give up the other.

If he falls into category c), you must protect and keep his NL card in order to have this option next year.

If he falls into category d), you needed to protect him as one of your 22-max to continue your ownership of this player.

Compensation will be linked to the key phrase "unexpected loss."  This is to keep people from trying to trade (or draft) their way into the compensation draft, where there should be good players each year. We don't want that to happen.

Compensation will be determined by the year the lost player has in the AL. Statistics, age and potential are certainly reasons.

When the list is completed, all the league managers will vote for the compensation order, listing the most deserving 1st, next most deserving 2nd, etc., all the way down the list. 

Managers will NOT be eligible to vote for their own players.  If irregularities in a manager's ballot are apparent (the obviously undeserving receive undue support to undermine the process), they will be publicized and the Compensation Committee reserves the right to invalidate such ballots and recommend to the Executive Committee that disciplinary action be taken. The Exec Committee will then decide upon a fair and just action, up to and including replacing the manager. THIS VOTE MUST BE AS HONEST AS THE GAMES.

Once the results are tallied, the compensation draft order will be determined and it will be run a couple of weeks prior to the rookie draft.

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