Someone explain salary arbitration for me

[Luke]

Whats the difference between salary arbitration and a regular contract neg?

[GoBlue]

It applies to salary disputes between a team and a player. Unlike grievance arbitration , salary arbitration is limited to issues of compensation. A salary arbitration system grants the arbitrator the authority to weigh evidence of a player's performance, ability and leadership to render a final decision.

A player is eligible for salary arbitration if he:

*is ineligible for free agency
*is without a contract
*cannot agree with his current team on a new contract
*has been on a major league roster or disabled list for at least three years

"Super Two" exception[3] - A player with at least two years of experience may be eligible for salary arbitration if he:

*Meets the first three requirements from above
*Played in the majors for at least 86 days in the previous season
*
Is among the top 17 percent for cumulative playing time in the majors among others with at least 2 years, but less than 3 years experience
In this process, the player and the team both submit a salary offer for a new contract; the arbitrator chooses one number or the other, whichever is thought to be most "fair" given comparable wages among players with similar ability and service time. Players thus rely on arbitration and free agency to increase their salaries.

Players eligible for neither free agency nor salary arbitration are very seldom offered contracts for much more than the league minimum salary, as the player has no recourse to try to obtain a better salary elsewhere. For this reason, in the first three major league years of their careers, players accept comparatively low salaries even when their performance is stellar. This is an accepted practice; talented, young players are usually content to "pay their dues" in this way and earn a chance to negotiate for more in their fourth year. Occasionally, a team may wish to sign a player in his second or third year to a long-term contract, for which negotiation can take place for a much higher salary.

[Mr. IWS]

Basically, arbitration is after 3 years, and guy can ask for a new contract, he puts the number he wants, the club puts out the number they want to pay, and some judge rules on it.

This probably explains it better.


Salary arbitration is a unique feature of major league baseball. It applies to salary disputes between a team and a player which is submitted to a neutral arbitrator (to be increased to a panel of three under the present agreement). Unlike grievance arbitration , salary arbitration is limited to issues of compensation. A salary arbitration system grants the arbitrator the authority to weigh evidence of a player's performance, ability and leadership to render a final decision.

A player or a club is allowed to submit a dispute over a player's salary to binding arbitration after a certain number of years in service have been accumulated by the player (usually between three and six years). The player's statistics are used as the key arbitration tool. Statistics covering productivity, longevity, potential and comparable worth as compared to like-situated players are used. The arbitrator must use these statistics to decide.

The arbitrator has the authority to choose between two amounts: one submitted by the team, the other by the player. There is no room for compromise. Some have criticized this system as bias towards the player, but in recent years, the teams have been quite successful.