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Negotiating “in the shadow” of the Collective Bargaining Agreement

Negotiating “in the shadow” of the Collective Bargaining Agreement. History of Salary Arbitration. Adopted in NHL in ’70; MLB in ’76 As a historic matter, why did the clubs and players agree on salary arbitration?

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Negotiating “in the shadow” of the Collective Bargaining Agreement

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  1. Negotiating “in the shadow” of the Collective Bargaining Agreement SPORTS LAW FALL 2010

  2. History of Salary Arbitration • Adopted in NHL in ’70; MLB in ’76 As a historic matter, why did the clubs and players agree on salary arbitration? Is the purpose to mirror the results of the free market that would exist but for other restraints? SPORTS LAW FALL 2010

  3. MLB Salary Arbitration Procedures • Each side files “final offer” • Arbitrator must select one or the other • No advance briefs • No written opinion Why do owners and players agree to such unusual procedures? SPORTS LAW FALL 2010

  4. Scott Gomez arbitration: precedents • Martin St. Louis • Brad Richards • Steve Sullivan • Milan Hejduk • Alex Tanguay • Marian Gaborik • Marian Hossa SPORTS LAW FALL 2010

  5. Relevant Criteria • Quality of player's contribution last yr, including special qualities • Length & consistency of contribution • Record of past compensation • Comparative salaries • Physical or mental defects • Recent performance of club SPORTS LAW FALL 2010

  6. Role of Agents • What they do • Relationship with Union under NLRA SPORTS LAW FALL 2010

  7. Moore/Braves • Why can individual clubs and players provide special covenants only that benefit the player? • Why can’t Braves waive requirement for Moore to go into “re-entry draft”? SPORTS LAW FALL 2010

  8. A-Rod’s Contract • Why would the MLBPA object to a deal that Rodriguez and his agent, Scott Boras, thought was good for the player, allowing him to escape Texas for Boston? SPORTS LAW FALL 2010

  9. MLB Bonuses • Can the Phillies agree to give Ryan Howard a $2m bonus if he hits 60 HRs next year? • If not, why not? • What bonuses are permitted in baseball? SPORTS LAW FALL 2010

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