Update: Rays, Damon just talking for now

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UPDATE, 12:15 PM: Jerry Crasnick of ESPN.com was told by a source that the Rays are indeed talking to Damon and that an agreement could “certainly happen,” but also that nothing is close.

2:29 AM: Johnny Damon has found a new home for the upcoming season.  Well, almost.

According to Tim Brown of Yahoo! Sports, the 37-year-old free agent is “closing in on a deal” with the Rays.

Damon also drew legitimate interest from the Yankees, Dodgers, Blue Jays and Angels this offseason, but he probably recognized that he has a better shot at playing time down in Tampa Bay, where the Rays have been ravaged offensively by free agency and have some question marks in different areas heading into spring training this year.

The 15-year major league veteran can’t be trusted to play the outfield anymore — at least, not on a regular basis — but he should find enough at-bats at designated hitter to remain satisfied and to produce at a somewhat high level.  At the worst, he’ll make for a useful pinch-hitter.

Damon finished with a .271/.355/.401 batting line, eight home runs and 51 RBI in 539 at-bats last season for the Tigers.  He can probably match a few of those stats if given ample looks with the Rays.

Report: Qualifying offer to be in the $18 million range

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According to ESPN’s Buster Olney, teams have been told that the qualifying offer to free agents this offseason will be in the $18 million range, likely $18.1 million. The value is derived by taking the average of the top 125 player salaries.

At $18.1 million, that would be $900,000 more than the previous QO, which was $17.2 million. This will impact soon-to-be free agents like Jake Arrieta, Eric Hosmer, Lorenzo Cain, Mike Moustakas, and Yu Darvish, among others. That also assumes that the aforementioned players aren’t traded, which would make them ineligible to receive qualifying offers. We’ve seen, increasingly, that teams aren’t willing to make a QO to an impending free agent and that trend is likely to continue this offseason.

The QO system was modified by the newest collective bargaining agreement. The compensatory pick for a team losing a player who declined a QO used to be a first-round pick. That was a penalty to both teams and players, which is why it was changed. Via MLB’s website pertaining to the QO:

A team that exceeded the luxury tax in the preceding season will lose its second- and fifth-highest selections after the first round in the following year’s Draft as well $1 million from its international bonus pool. If such a team signs multiple qualifying offer free agents, it will forfeit its third- and sixth-highest remaining picks as well.

A team that receives revenue sharing will lose its third-highest selection after the first round in the following year’s Draft. If it signs two such players, it will also forfeit its fourth-highest remaining pick.

A team that neither exceeded the luxury tax in the preceding season nor receives revenue sharing will lose its second-highest selection after the first round in the following year’s Draft as well as $500,000 from its international bonus pool. If it signs two such players, it will also forfeit its third-highest remaining pick.

Additionally, if a player who rejected a QO signs a guaranteed contract worth at least $50 million and came from a team that receives revenue sharing, that previous team will receive a compensatory pick immediately following the first round in the ensuing draft. If the contract is less than $50 million, that team will get a compensatory pick after Competitive Balance Round B. If the player’s team is over the luxury tax threshold, that team will receive a compensation pick following the fourth round. If that team neither exceeded the luxury tax nor receives revenue sharing, the compensation pick will come after Competitive Balance Round B.

Yeah, it’s a bit convoluted, but you do the best you can with a flawed system.

The Astros’ pursuit of Sonny Gray is “heating up”

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Jon Morosi of MLB Networks reports that talks are “heating up” between the Astros and Athletics on a Sonny Gray trade. Gray, obviously, would represent a big upgrade for the Astros’ rotation. He has a 3.66 ERA and has struck out 85 batters while walking 28 in 91 innings.

Morosi adds that Gray is not the only option for the Astros, as they are also talking to the Tigers about a potential acquisition of Justin Verlander and Justin Wilson. That would obviously be a much tougher deal to negotiate given Verlander’s 10/5 rights giving him veto power over any trade, not to mention the massive amount of money he’s still owed on his contract.

Also: I’m pretty sure that it’s in the MLB rules that any trade between the Tigers and the Astros has to involve Brad Ausmus, C.J. Nitkowski and Jose Lima, and that’s not possible given their current occupations and/or their deaths in 2010.