Royals won’t offer arbitration to Olivo or other free agents

The Royals will not offer arbitration to free-agent catcher Miguel Olivo prior to Tuesday night’s deadline. Club officials privately confirmed the decision, which means the Royals will not be eligible for a compensatory draft pick if Olivo signs with another team.

Olivo was classified as a Type B free agent under baseball’s ranking system, which meant the Royals would have received a sandwich pick between the first and second rounds of next year’s draft if he signed elsewhere.

The Royals deemed the compensation insufficient when weighed against the risk of Olivo accepting arbitration, which likely could have boosted his salary from $2.9 million to $3.5-4 million.

There was little reason for the club to offer arbitration to its other three free agents: outfielder Coco Crisp and pitchers Jamey Wright and Bruce Chen. None of the three qualified for compensation.

Rules permit clubs to continue negotiating with their free agents regardless of whether arbitration is offered.