A Market Correction for Arbitration-Eligible Sluggers
In Major League Baseball, the market tends to correct itself as clubs gain greater knowledge of players and their value. If aging players are less successful, the market for that group might slow a bit. Bullpen arms become more or less desirable depending on their scarcity. Increased revenues tend to move everyone up the pay scale. It is important to understand how and when to make adjustments in value as run-scoring environments, finances, and aging patterns change.
That is all well and good for those who run organizations and those who follow the game closely, but the arbitration process is much less nuanced. The non-tendering of contracts to Pedro Alvarez and Chris Carter, along with the trade of Mark Trumbo, are all the result of a failure to adjust — within the arbitration process, specifically — as the market slowly corrects for the overpayment of defensively- (and sometimes offensively-) limited home run hitters whose overall effectiveness has dimmed.
The arbitration process tends to favor the traditional stats that place like FanGraphs have tried to de-emphasize. Closers get big paydays in arbitratio, regardless of overall performance. As a result, the St. Louis Cardinals opted to let Steve Cishek go instead of moving to arbitration where he would receive a salary of around $7 million. Home runs and RBI tend to get paid as well, causing an overpayment for those players who rack up those numbers, but have big deficiencies in other areas.