MLB: What is the Salary Arbitration and which players will be affected by it in 2018?

A special feature of player contracts in the MLB is the Salary Arbitration, in which players and teams who cannot agree on the salary go to arbitration to reach a decision on a new contract. SPOX explains this process and names the most important candidates in 2018.

Teams still have until Friday at 7 p. m. CET to sign contracts with their “arbitration eligible” players. Otherwise, after the start of the Spring Training there will be an arbitration panel, where an independent MLB representative will decide how high the player’s salary will be for the coming season.

Salary arbitration is a process in which salary disputes between players and teams are resolved. MLB players are basically under team control for their first six years in the league and cannot become Free Agents without the consent of the team. For the first three years, the team itself may determine a player’s salary. From the fourth year onwards, however, negotiations will begin.

Players and teams can even agree on multi-year contracts – even before the fourth year, by the way. If this is not successful, however, a one-year contract must be negotiated for the upcoming season. If there is no agreement, both the team and the player give a salary and argue their point of view before the arbitration court. Whatever the “judge” then decides, applies.

If the arbitral tribunal makes a decision, it shall be binding. However, it is not uncommon for both sides to agree on the average value before a judgement is reached.

As a rule, you are only eligible for the fourth year in the “Arbitration eligible”league, but there is a certain exception. A player with a Super Two status can negotiate his or her salary as early as the third year of his or her salary and is therefore also eligible for arbitration.

The Super Two status is achieved by achieving at least two years of service time and being among the top 22 percent of players who have reached between two and three years of service time in the MLB. In order to be credited for one year of service time, you must be on a 25 player squad or the MLB’s Disabled List for 172 days.