2026 MLB Draft Order: Competitive Balance Rounds Finalized

The 2026 MLB Draft is already taking shape. Major League Baseball has now locked in its Competitive Balance rounds, draft lottery framework, and key penalties.

This article breaks down how Competitive Balance picks work. Which clubs benefit? Why will the 2026 draft order be shaped as much by revenue, market size, and payroll behavior as by wins and losses on the field?

How MLB’s Competitive Balance Rounds Work

Competitive Balance (CB) rounds give a boost to franchises with smaller markets or lower revenues. In a sport without a hard salary cap, these picks are one of the league’s main tools to prevent the rich from pulling away forever.

For the 2026 Draft, 15 teams have been awarded Competitive Balance selections. They’re split into two supplemental rounds:

The Criteria: Revenue, Market Size, and Winning

The league uses a formula that blends revenue, market size, and winning percentage to determine which teams qualify. Clubs that lag in revenue or operate in smaller media markets are the primary beneficiaries, especially if recent performance hasn’t pushed them into the top tier of contenders.

Unlike standard draft rounds, which are ordered strictly by record, CB rounds are limited to this select group of lower-revenue or small-market teams. These picks are crucial pieces for organizations that can’t just spend their way out of trouble in free agency.

Where CB Rounds Fit in the 2026 Draft Order

The placement of these CB rounds is just as important as who gets the picks. Competitive Balance selections act as supplemental rounds that break up the early stages of the draft.

In 2026, MLB will slot these rounds as follows:

Order Determined by Previous Season Standings

Within each Competitive Balance round, the order goes strictly by the previous season’s standings, from best to worst among the teams awarded picks. That twist matters—a small-market club that overachieves one year may find its CB selection sliding toward the back of the supplemental round, while a struggling low-revenue team will get an earlier bite at the apple.

These CB slots, usually clustered in the 30–80 range, have often produced everyday regulars and even occasional stars. Smaller clubs get a deeper pool of prospects as a result.

The Unique Twist: CB Picks Can Be Traded

One of the quirks of Competitive Balance selections is their mobility. They’re the only draft picks MLB allows teams to trade, which adds a layer of strategy to deadline deals and offseason maneuvering.

CB picks are also exempt from forfeiture tied to free-agent signings—unless the pick has already been traded. That protection makes them especially attractive for front offices looking to add future value without risking loss of those selections through qualifying-offer penalties.

Strategic Impact on Roster Building

Because teams can move them, Competitive Balance picks often function like a hybrid asset: part prospect pipeline, part trade chip. Rebuilding teams may hang onto them to deepen their farm systems, while contenders with CB slots can flip those selections to acquire established major league talent.

In a trade market increasingly driven by controllable talent, that flexibility boosts the importance of CB rounds beyond draft day itself.

Draft Lottery, Penalties, and Special Cases for 2026

The top of the 2026 MLB Draft won’t be determined purely by the standings. The draft lottery will further reshape the early board before CB picks even enter the picture.

On December 9, MLB will conduct the lottery to finalize the top selections. Fifteen of the 18 non-playoff teams are eligible, with the Chicago White Sox holding the best odds at 27.73% to land the No. 1 overall pick.

Teams Ineligible for the Lottery

Not every non-playoff club gets a shot at that top prize. In 2026:

These restrictions exist to keep clubs from living perpetually at the top of the draft board. MLB wants to encourage more aggressive attempts to compete.

Tax Penalties and Compensation Picks

While some teams get help via CB rounds, others get pushed backward for spending deep into luxury-tax territory. The 2026 draft includes harsh penalties for organizations that exceed the second tier of the competitive-balance tax system.

The Blue Jays, Dodgers, Mets, Phillies, and Yankees will each face a 10-spot penalty on their first-round picks. That means their initial selections slide down the board, reducing access to elite amateur talent as a direct consequence of their spending habits.

Free Agency, Qualifying Offers, and Extra Picks

On top of CB and lottery mechanics, compensation picks will be sprinkled throughout the 2026 draft for teams that lose high-profile free agents who declined qualifying offers. Those bonus selections usually fall after the first round or between early rounds, depending on the team’s market status and the size of the departing player’s contract.

One known example is the San Diego Padres, who are already slated to receive a compensation pick after Round 4 tied to their signing of Dylan Cease. That placement reflects the league’s complex sliding scale of penalties and rewards for clubs’ behavior in the free-agent market.

Balancing Equity, Incentives, and Strategy

The 2026 MLB Draft structure really lays out what the league wants: balance competitive equity and push the big-money teams to be a bit more thoughtful. Smaller-market clubs grab extra draft capital and those tradable CB chips.

Meanwhile, big spenders end up paying with their draft position. The lottery and compensation rules add a twist, making sure no one strategy runs the show.

For front offices, this isn’t just a draft. It’s a weird, layered chessboard packed with incentives, penalties, and chances to get clever—or to trip up.

If you’re a fan, the 2026 draft might say a lot about how sharp your favorite team is when it comes to the new, analytics-heavy world of building a winner in Major League Baseball.

 
Here is the source article for this story: With Competitive Balance rounds set, here’s how the 2026 Draft order looks