Arbitration

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 (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
2007 MLB Calendar

• Jan 5-15 Salary arbitration filing.
• Jan. 18 Exchange of salary
• arbitration figures.
• Feb. 1-21 Salary arbitration
• hearings.

6
2007 Salary Arbitration Filings

• 106 players filed for arbitration
• 56 players exchanged salary arbitration figures

7
2007 Salary Arbitration Figures

• Erik Bedard BAL 2.7M 4M
• Joe Beimel LA 912,500 1.25M
• Eric Byrnes ARI 4.25M 5M
• Miguel Cabrera FLA 6.7M 7.4M
• Jose Castillo PIT 1.8M 2.2M
• Shawn Chacon PIT 3.7M 4.25M
• Chad Cordero WAS 3.65M 4.15M
• Michael Cuddyer MIN 3M 4.25M
• Doug Davis ARI 5.25M 7.5M
• Brendan Donnelly BOS 1.15M 1.65M
• Scott Downs TOR 925,000 1.2M
• J. Duchscherer OAK 925,000 1.45M
• Morgan Ensberg HOU 4M 4.9M
• Alex Escobar WAS 500,000 590,000
• Johnny Estrada MIL 3M 3.9M
• Adam Everett HOU 2.5M 3.4M
• Josh Fogg COL 3M 4.25M
• Lew Ford WAS 800,000 1.3M
• Geoff Geary PHI 750,000 925,000

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2007 Salary Arbitration Figures

• Austin Kearns WAS 3.65M 4.25M
• Bobby Kielty OAK 1.925M 2.5M
• Jason Lane HOU 900,000 1.375M
• Adam LaRoche ATL 2.8M 3.7M
• Felipe Lopez WAS 3.7M 4.1M
• Joe Mauer MIN 3.3M 4.5M
• Jason Michaels CLE 2M 3.2M
• Justin Morneau MIN 4M 5M
• Brett Myers PHI 5M 5.9M
• Corey Patterson BAL 4M 4.6M
• John Patterson WAS 850,000 1.85M
• Josh Paul TB 625,000 940,000
• Wily Mo Pena BOS 1.725M 2.2M
• Mark Prior CHC 3.4M 3.875M
• Nick Punto MIN 1.6M 2.1M
• Juan Rincon MIN 1.6M 2.4M
• Alexis Rios PIT 2M 3.1M
• Brian Roberts BAL 3.8M 4.6M
• Kirk Saarloos OAK 925,000 1.475M

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Arbitration winners and losers list 2007

• Winners
• Player, club
  Asked Offered
• Miguel Cabrera, Florida
  7,400,000 6,700,000
• Chad Cordero, Washington
  4,150,000 3,650,000
• Todd Walker, San Diego 3,950,000
  2,750,000
• Losers
• Player, club
  Asked Offered
• Joe Beimel, Los Angeles 1,250,000
  912,500
• Kevin Gregg, Florida
  700,000 575,000
• John Patterson, Washington
  1,850,000 850,000
• Josh Paul, Tampa Bay
  940,000 625,000

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2009 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

11
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).