What Is Baseball Arbitration?

Baseball arbitration is a process by which a player or team agrees on the terms of a contract. Both sides must present their cases to an arbitration panel. The panel chooses the best offer that matches the player’s true value.

Players who have been in the league for at least three years are eligible to participate in salary arbitration. These players have a salary that is below the current MLB minimum. This allows players to argue for higher salaries and other benefits.

Arbitration hearings are usually held in Los Angeles or Tampa. Each side is given a certain amount of time to present their case. They also receive half an hour to rebut each other’s presentation.

Arbitration hearings are confidential. If the two sides cannot reach an agreement, a hearing will be held.

In recent years, cases have been settled before the hearings. This is a good way to avoid a big arbitration award. However, the parties must still meet the requirements of the CBA.

In the player’s case, the arbitrator will review his performance, career contributions, past compensation, physical defects, and his team’s performance. He will also consider any comparative baseball salaries and the fan appeal.

In the team’s case, they will also review their performance, attendance, and any comparative baseball salaries. After all, they are using analytics more and more to help them decide on which players to use in a particular trade.

Once the two parties reach an agreement, the player is given his requested salary for the upcoming season. In addition, the team is able to cut expensive players from their roster.