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 • Jody Gerut PIT $800,000 $925,000 • John Grabow PIT $765,000 $925,000 • Tony Graffanino MIL $2.8M $3.7M • Kevin Gregg FLA $575,000 $700,000 • Bill Hall MIL $3M $4.125M • Aaron Harang CIN $4.25M $5.5M • Reed Johnson TOR $2.5M $3.6M

8. 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 • Freddy Sanchez PIT $2.15M $3.1M • Chase Utley PHI $4.5M $6.25M • Claudio Vargas ARI $2.15M $2.85M • Oscar Villareal ATL $860,000 $1.3M • Todd Walker SD $2.75M $3.95M • Todd Wellemeyer KC $565,000 $740,000 • Carlos Zambrano CHC $11.025M $15.5M

9. 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

10. 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).