An Arbitration Compensation Update

Yesterday, I released a study of the average compensation that players who qualify for Super Two arbitration receive in their pre-free-agency years. Today, I’m replicating the same study for players who reached standard arbitration. This should help add numerical context to the negotiations between the league and the MLBPA around pre-free-agency compensation – though those negotiations aren’t going well at the moment.
As a reminder, I’m looking at the production and subsequent-year salaries of every player since 2013 to establish a rule of thumb for what players can expect to receive in arbitration given their production in the preceding year. The methodology will follow, but first, here’s the high-level summary of what players have received based on their service time, position, and production:
| Player Type | $/WAR Arb1 | $/WAR Arb2 | $/WAR Arb3 |
|---|---|---|---|
| Batter | $1.36 | $2.13 | $3.59 |
| Starter | $1.38 | $2.35 | $3.34 |
| Reliever | $1.79 | $3.98 | $5.61 |
This table displays the amount of money a given player should make above the minimum salary based on who they are and what they did. Just as with the Super Two numbers, this broadly makes sense – players receive less per unit of production than they would in free agency, but their compensation gets close and closer to free agency levels (roughly $6.5 million above minimum salary per WAR) as they go further into arbitration. Read the rest of this entry »


