Before the 2022 MLB season, the players and owners were locked out of a collective bargaining agreement. This resulted in the 2022 season being delayed. One of the biggest issues amongst the players and teams was the practice of teams tanking. In an effort to combat this, they agreed to an MLB Draft lottery and the Prospect Promotion Incentive.

​

Why MLB’s Prospect Promotion Incentive Came Together

Prior to 2022, teams had been notorious for delaying the debuts of their top prospects in an effort to gain an extra year on these players’ rookie deals. A majority of the time, most teams’ top prospects wouldn’t debut until late May or early June. A great example of this is Gerrit Cole, who didn’t debut until June 11th in his rookie year. By doing this, teams would be able to maintain an extra year of pre-arbitration salary for their players. This allowed teams to save money on their top young stars.

​

What is the Prospect Promotion Incentive?

Now, thanks to the new collective bargaining agreement, players are able to earn an extra draft pick for their teams if they make Opening Day rosters or reach the big leagues in two weeks from Opening Day. Additionally, players must be available for the majority of the season and accumulate 172 days of service time. Teams are then awarded a draft pick if their respective former prospect finishes in the top three of major awards (ex, MVP, Cy Young) or wins Rookie of the Year. The only prospects eligible to qualify for the draft pick need to be on two of the three 100 prospect lists put out by MLB Pipeline, Baseball America, and ESPN, and have less than 60 days of prior MLB service.

Reflections on Prospect Promotion Incentive players for each franchise—past, present & future—in the initiative’s 5th anniversary season

A few players mentioned were assigned to minor league camp yesterday, including Elmer Rodriguez and Ryan Waldschmidthttps://t.co/1PSGxKxJey

— Matt Eddy (@MattEddyBA) March 10, 2026

​Draft picks can also be awarded retroactively to prospects who had previously made their debut in the aforementioned deadline and finished in the top three of the major awards prior to reaching arbitration. So, if a player finished in the top three of Cy Young or MVP voting in any of their first three seasons, a team is awarded a draft pick at the end of the first round. However, a team can only receive one draft pick per player and only one pick per season. A player will also lose their eligibility to earn their respective team a draft pick if they made their debut with a different team.

​

Who Has and Has Not Benefited from the PPI

​

Only two clubs have received a draft pick retroactively: the Royals and the Astros. Both Bobby Witt Jr. and Hunter Brown’s performances have earned their clubs a pick retroactively. The Royals received a pick thanks to Witt’s runner-up MVP finish in 2024. Meanwhile, the Astros will be awarded a pick in 2026 thanks to Brown’s third-place finish in last season’s AL Cy Young Award.

​

When and Where Teams Benefit
Previously mentioned teams earn a draft pick from their top 100 prospects finishing well in baseball’s major awards. These picks are awarded at the back end of the first round. For example, the Braves and Astros will pick at 26th and 28th overall, respectively. On average, teams have picked at the 29th overall slot for the six awarded picks. Ryan Waldschmidt was taken with the pick awarded to the Diamondbacks for Corbin Carroll’s Rookie of the Year award. Waldschmidt is currently ranked 59th on MLB Pipeline’s Top 100 Prospects List.  

Main Photo Credit: G Fiume/Getty Images