Arbitration is a critical process in Major League Baseball (MLB) that helps resolve contract disputes between players and teams.
It serves as an alternative to litigation and allows both parties to present their cases before an impartial arbitrator.
How Does Arbitration Work in MLB?
Arbitration in MLB is a process where players and teams resolve contract disputes through an impartial arbitrator, considering factors like performance, awards, and comparable contracts, rather than litigation.
Below we look in more detail at how arbitration works in MLB, exploring the process, key factors, and notable examples.
The Arbitration Process
The arbitration process in MLB typically occurs when a player and their team fail to reach an agreement on a new contract.
It is available to players who have accumulated a certain number of years of service time, usually between three and six years, depending on specific criteria outlined in the Collective Bargaining Agreement (CBA) between the MLB Players Association (MLBPA) and the league.
Here is a step-by-step breakdown of how arbitration works:
Player and team exchange salary figures
Before the arbitration hearing, both the player and the team submit their desired salary figures for the upcoming season.
These figures represent what they believe the player’s value is based on their performance, statistics, and comparable contracts of other players.
Arbitration hearing
If the player and team cannot agree on a contract amount, an arbitration hearing takes place.
The hearing is presided over by an independent arbitrator who listens to arguments from both sides and reviews evidence presented.
Factors considered
The arbitrator considers various factors when determining the player’s salary, including their performance statistics, awards, leadership qualities, and contributions to the team’s success.
The arbitrator may also consider the salaries of comparable players in similar situations.
Decision
After considering all the evidence and arguments, the arbitrator makes a binding decision on the player’s salary for the upcoming season.
The decision is typically based on one of the two submitted salary figures, although the arbitrator has the authority to choose any amount within that range.
Key Factors in Arbitration
Several key factors come into play during the arbitration process in MLB.
These factors help determine the player’s value and influence the final decision made by the arbitrator.
Some of the essential factors include:
Performance statistics
The player’s performance statistics, such as batting average, home runs, earned run average (ERA), and fielding percentage, play a significant role in determining their value.
Players with impressive statistics are likely to command higher salaries.
Awards and accolades
Awards and accolades, such as Most Valuable Player (MVP) awards, Gold Gloves, and All-Star selections, can enhance a player’s value during arbitration.
These achievements demonstrate the player’s excellence and impact on the game.
Comparable contracts
Arbitrators often consider the salaries of comparable players who have recently gone through the arbitration process or signed new contracts.
These contracts serve as benchmarks for determining fair compensation.
Team success
A player’s contributions to their team’s success, such as playoff appearances or championships, can positively influence their value during arbitration.
Players who have played a crucial role in their team’s achievements may receive higher salaries.
Leadership qualities
Leadership qualities, such as being a team captain or a respected figure in the clubhouse, can also impact a player’s value during arbitration.
These intangible qualities are often considered when evaluating a player’s overall worth to the team.
Notable Examples
Several notable arbitration cases in MLB history have shed light on the nuances of the process and its impact on players and teams.
Let’s explore a few examples:
1. Kris Bryant vs. Chicago Cubs (2020)
In 2020, Kris Bryant, a star third baseman for the Chicago Cubs, went through the arbitration process.
Bryant had an impressive track record, including winning the National League MVP award in 2016.
However, the Cubs argued that he should be paid less due to injuries and a decline in performance in recent seasons.
The arbitrator ultimately ruled in favor of the Cubs, awarding Bryant a salary of $18.6 million for the 2020 season.
2. Mookie Betts vs. Boston Red Sox (2018)
Mookie Betts, an outfielder for the Boston Red Sox, had an outstanding 2018 season, winning the American League MVP award and helping lead the Red Sox to a World Series championship.
Betts sought a salary of $10.5 million, while the Red Sox offered $7.5 million.
The arbitrator sided with Betts, awarding him the higher figure based on his exceptional performance and contributions to the team’s success.
3. Jacob deGrom vs. New York Mets (2019)
Jacob deGrom, a dominant pitcher for the New York Mets, had an exceptional 2018 season, winning the National League Cy Young Award.
He sought a salary of $20 million, while the Mets offered $17 million.
The arbitrator ruled in favor of deGrom, awarding him the higher figure based on his outstanding performance and recognition as one of the league’s best pitchers.
The Largest Settlement in Baseball History (MLB Arbitration)
Q&A – How Does Arbitration Work in MLB?
1. What is the purpose of arbitration in MLB?
Arbitration in MLB serves as a means to resolve contract disputes between players and teams without resorting to litigation.
It allows an impartial arbitrator to determine a fair salary for the player based on various factors.
2. How many years of service time do players need to be eligible for arbitration?
Players typically need between three and six years of service time, depending on specific criteria outlined in the Collective Bargaining Agreement (CBA) between the MLBPA and the league, to be eligible for arbitration.
3. Can players and teams negotiate a contract even after exchanging salary figures?
Yes, players and teams can continue negotiating a contract even after exchanging salary figures.
In fact, the majority of arbitration cases are settled before reaching an actual hearing.
4. Who serves as the arbitrator in MLB arbitration cases?
The arbitrator in MLB arbitration cases is an independent third party agreed upon by both the player and the team.
The arbitrator is typically an experienced lawyer or former judge with expertise in labor and contract law.
5. Is the arbitrator’s decision binding?
Yes, the arbitrator’s decision is binding and cannot be appealed.
Both the player and the team are obligated to abide by the decision and agree to the terms set forth.
6. Can a player be awarded a salary higher than the figures submitted by both parties?
Yes, the arbitrator has the authority to award a salary higher than the figures submitted by both parties.
The arbitrator can choose any amount within the range of the two submitted figures based on the evidence and arguments presented.
7. Are there any limitations on the salary awarded through arbitration?
No, there are no specific limitations on the salary awarded through arbitration.
The arbitrator has the discretion to determine a fair salary based on the player’s value and the evidence presented.
8. Can a team release a player after an arbitration decision?
Yes, a team can release a player after an arbitration decision.
However, the team is still obligated to pay the player the agreed-upon salary for the upcoming season, even if they are released.
9. Can a player refuse to participate in the arbitration process?
No, a player cannot refuse to participate in the arbitration process if they are eligible.
It is a mandatory process outlined in the Collective Bargaining Agreement (CBA) between the MLBPA and the league.
10. Can a player go through arbitration multiple times?
Yes, a player can go through arbitration multiple times during their career if they meet the eligibility criteria outlined in the Collective Bargaining Agreement (CBA).
Each arbitration case typically covers one season.
11. Can a team trade a player after an arbitration decision?
Yes, a team can trade a player after an arbitration decision.
However, the new team acquiring the player must honor the agreed-upon salary for the upcoming season.
12. Are all arbitration cases resolved through a hearing?
No, not all arbitration cases reach a hearing.
The majority of cases are settled through negotiations between the player and the team before reaching an actual hearing.
13. Can a team sign a player to a long-term contract after arbitration?
Yes, a team can sign a player to a long-term contract after arbitration.
In fact, many players and teams use arbitration as a stepping stone to negotiate a multi-year deal that provides security for both parties.
14. Can a player be awarded a salary lower than the figures submitted by both parties?
Yes, the arbitrator has the authority to award a salary lower than the figures submitted by both parties.
The arbitrator can choose any amount within the range of the two submitted figures based on the evidence and arguments presented.
15. Can a team offer a contract extension to avoid arbitration?
Yes, a team can offer a contract extension to a player to avoid going through the arbitration process.
By reaching a mutually agreed-upon contract extension, both parties can bypass arbitration and secure a longer-term deal.
Summary
Arbitration plays a vital role in MLB, providing a fair and efficient mechanism for resolving contract disputes between players and teams.
The process involves exchanging salary figures, presenting arguments before an arbitrator, and considering various factors such as performance statistics, awards, and team success.
Notable cases like Kris Bryant, Mookie Betts, and Jacob deGrom highlight the impact of arbitration on player salaries.
Understanding how arbitration works in MLB is crucial for players, teams, and fans alike, as it shapes the financial landscape of the game.
