The Pre-Arb Bonus Pool Is A Success

Last week, MLB announced the distribution of the pre-arbitration bonus pool. You probably saw roughly one headline from this: Paul Skenes earned a record $3,436,343 bonus for his spectacular sophomore season. That is indeed great news, in my opinion. Skenes was one of the most exciting and best players in baseball in 2025, and a compensation system that more closely aligns skill with salary is a no brainer to me. But while Skenes’ record haul drew the headlines, the vast majority of the $50 million pool was spread widely; 101 players received bonuses, with all 30 teams boasting at least one awardee.
I’m here to tell you that I think this is a wonderful development. The fund, established in the most recent collective bargaining agreement, takes in $1.67 million from each team every year to fund its $50 million payout. It hands some of that money out to award winners, from $2.5 million for Skenes’ Cy Young Award win down to $150,000 for Daylen Lile’s fifth-place Rookie of the Year finish. The rest goes to the top 100 pre-arbitration players in a WAR formula jointly calculated by MLB and the MLBPA according to a set ratio.
This didn’t feel like a huge part of the CBA at the time it was signed, but in my opinion, it’s been an incredible boon for the game. Baseball’s compensation system has always been out of whack. The service time system limits all pre-arbitration players to the minimum salary, more or less. Teams do occasionally award salaries slightly greater than the minimum ($760,000 in 2025), but generally by a de minimis amount: The Pirates paid Skenes $875,000 this year, for example.
That flat structure means that under the old system, Skenes would have earned roughly $1.6 million in 2024 and 2025, instead of the $7.2 million he’s pocketed under the new system. You can’t convince me that that’s a bad thing. Cristopher Sánchez is an even better example, because unlike Skenes, he didn’t have a huge signing bonus as an amateur — not to mention all the ancillary income the Pittsburgh superstar earns through his various endorsement deals as one of the most recognizable players in the sport. Sánchez just eclipsed three years of service time; through the end of 2024, the Phillies had paid him around $2.5 million in salary for his first two-plus major league seasons. He signed a contract extension that paid him $3.55 million in 2025, bringing his career contractual earnings up to roughly $6 million. Thanks to the bonus pool, though, he’s received an additional $3.5 million over the last three years. That’s a huge difference, and in a clearly good direction for money to flow. Read the rest of this entry »







