Arbitration
Jody Blanke
Professor of Computer Information
Systems and Law
Characteristics
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Created by contract
Dispute heard by impartial third party
Legally binding decision
Generally non-appealable
“Favored by the courts”
Advantages
 Cheaper
 Faster
 More expertise involved
Baseball Arbitration
 Contractual procedure described in
the Collective Bargaining Agreement
(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
2007 MLB Calendar
 Jan 5-15
 Jan. 18
 Feb. 1-21
Salary arbitration filing.
Exchange of salary
arbitration figures.
Salary arbitration
hearings.
2007 Salary Arbitration Filings
 106 players filed for arbitration
 56 players exchanged salary
arbitration figures
2007 Salary Arbitration Figures
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Erik Bedard
Joe Beimel
Eric Byrnes
Miguel Cabrera
Jose Castillo
Shawn Chacon
Chad Cordero
Michael Cuddyer
Doug Davis
Brendan Donnelly
Scott Downs
J. Duchscherer
Morgan Ensberg
Alex Escobar
Johnny Estrada
Adam Everett
Josh Fogg
Lew Ford
Geoff Geary
Jody Gerut
John Grabow
Tony Graffanino
Kevin Gregg
Bill Hall
Aaron Harang
Reed Johnson
BAL
LA
ARI
FLA
PIT
PIT
WAS
MIN
ARI
BOS
TOR
OAK
HOU
WAS
MIL
HOU
COL
WAS
PHI
PIT
PIT
MIL
FLA
MIL
CIN
TOR
$2.7M
$912,500
$4.25M
$6.7M
$1.8M
$3.7M
$3.65M
$3M
$5.25M
$1.15M
$925,000
$925,000
$4M
$500,000
$3M
$2.5M
$3M
$800,000
$750,000
$800,000
$765,000
$2.8M
$575,000
$3M
$4.25M
$2.5M
$4M
$1.25M
$5M
$7.4M
$2.2M
$4.25M
$4.15M
$4.25M
$7.5M
$1.65M
$1.2M
$1.45M
$4.9M
$590,000
$3.9M
$3.4M
$4.25M
$1.3M
$925,000
$925,000
$925,000
$3.7M
$700,000
$4.125M
$5.5M
$3.6M
2007 Salary Arbitration Figures
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Austin Kearns
Bobby Kielty
Jason Lane
Adam LaRoche
Felipe Lopez
Joe Mauer
Jason Michaels
Justin Morneau
Brett Myers
Corey Patterson
John Patterson
Josh Paul
Wily Mo Pena
Mark Prior
Nick Punto
Juan Rincon
Alexis Rios
Brian Roberts
Kirk Saarloos
Freddy Sanchez
Chase Utley
Claudio Vargas
Oscar Villareal
Todd Walker
Todd Wellemeyer
Carlos Zambrano
WAS
OAK
HOU
ATL
WAS
MIN
CLE
MIN
PHI
BAL
WAS
TB
BOS
CHC
MIN
MIN
PIT
BAL
OAK
PIT
PHI
ARI
ATL
SD
KC
CHC
$3.65M
$1.925M
$900,000
$2.8M
$3.7M
$3.3M
$2M
$4M
$5M
$4M
$850,000
$625,000
$1.725M
$3.4M
$1.6M
$1.6M
$2M
$3.8M
$925,000
$2.15M
$4.5M
$2.15M
$860,000
$2.75M
$565,000
$11.025M
$4.25M
$2.5M
$1.375M
$3.7M
$4.1M
$4.5M
$3.2M
$5M
$5.9M
$4.6M
$1.85M
$940,000
$2.2M
$3.875M
$2.1M
$2.4M
$3.1M
$4.6M
$1.475M
$3.1M
$6.25M
$2.85M
$1.3M
$3.95M
$740,000
$15.5M
Arbitration winners and losers list
2007
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Winners
Player, club
Miguel Cabrera, Florida
Chad Cordero, Washington
Todd Walker, San Diego
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Asked
$7,400,000
4,150,000
3,950,000
Offered
$6,700,000
3,650,000
2,750,000
Losers
Player, club
Joe Beimel, Los Angeles
Kevin Gregg, Florida
John Patterson, Washington
Josh Paul, Tampa Bay
Asked
$1,250,000
700,000
1,850,000
940,000
Offered
$ 912,500
575,000
850,000
625,000
2009 Arbitration Results
 111 players filed for arbitration
 46 players exchanged salary
arbitration figures
 3 players had hearings
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Winners
Player, club
Shawn Hill, Washington
Dan Uggla, Florida
Asked
$775,000
$5,350,000
Offered
$500,000
$4,400,000
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Losers
Player, club
Dioner Navarro, Tampa Bay
Asked
$2,500,000
Offered
$2,100,000
Baseball Arbitration Facts
 Since 1974 (through 2006), clubs have won
269 arbitration hearings (57%) and players
199 (43%).
 Since 1990, 88 percent of the players filing
for arbitration settled before a hearing.
 In 2006, only 6 of 43 salary exchanges
went to a hearing.
 Twice the salary figures submitted by
players were lower than those submitted by
the teams - Mike Edwards (1980) and Mike
Flanagan (1982).