Baseball Salary Arbitration: Procedures, Results & Trends

1. Arbitration Jody Blanke Professor of Computer Information Systems and Law

2. Characteristics • Created by contract • Dispute heard by impartial third party • Legally binding decision • Generally non-appealable • “Favored by the courts”

3. Advantages • Cheaper • Faster • More expertise involved

4. Baseball Arbitration • Contractual procedure described in the Collective Bargaining Agreement (311-page PDF file) between Major League Baseball and the Players Association • Eligibility – players with at least three, but no more than six, years of Major League service

5. 2014 MLB Calendar • Jan. 14 Salary arbitration filing deadline. • Jan. 17 Exchange of salary arbitration figures. • Feb. 1-21 Salary arbitration hearings.

6. 2014 Salary Arbitration Filings • 146 players filed for arbitration • 57 players exchanged salary arbitration figures (19 settled that same day) • ? players will have hearings

7. 2013 Salary Arbitration Filings • 133 players filed for arbitration • 41 players exchanged salary arbitration figures • 0 players had hearings

8. 2012 Salary Arbitration Filings • 142 players filed for arbitration • 46 players exchanged salary arbitration figures • 7 players had hearings

9. 2012 Salary Exchange Figures

10. 2012 Salary Exchange Figures

11. 2011 Salary Arbitration Results • 131 players filed for arbitration • 37 players exchanged salary arbitration figures • 3 players had hearings • Winners Player, club Asked Offered Russ Ohlendorf, PIT $2,025,000 $1,400,000 Hunter Pence, HOU 6,900,000 5,150,000 • Losers Player, club Asked Offered Jered Weaver, LAA $8,800,000 $7,365,000

12. 2010 Salary Arbitration Results • 128 players filed for arbitration • 34 players exchanged salary arbitration figures • 8 players had hearings • Winners Player, club Asked Offered Cory Hart, Brewers $4,800,000 $4,150,000 Jeff Mathis, Angels 1,300,000 700,00 Cody Ross, Marlins 4,450,000 4,200,000 • Losers Player, club Asked Offered Brian Bruney, Nationals $1,850,000 $1,500,000 Sean Burnett, Nationals 925,000 775,000 Wandy Rodriguez, Astros 7,000,000 5,000,000 Ryan Theriot, Cubs 3,400,000 2,600,000 B.J. Upton, Rays 3,300,000 3,000,000

13. 2009 Salary Arbitration Results • 111 players filed for arbitration • 46 players exchanged salary arbitration figures • 3 players had hearings • Winners Player, club Asked Offered Shawn Hill, Washington $ 775,000 $ 500,000 Dan Uggla, Florida 5,350,000 4,400,000 • Losers Player, club Asked Offered Dioner Navarro, Tampa Bay $2,500,000 $2,100,000

14. Baseball Arbitration Facts • Since 1974 (through 2012), clubs have won 291 arbitration hearings (58%) and players 214 (42%). • Since 1990, about 90 percent of the players filing for arbitration settled before a hearing. • Twice the salary figures submitted by players were lower than those submitted by the teams - Mike Edwards (1980) and Mike Flanagan (1982).