Five Things We Learned from Arbitration Deadline Day
Last Friday was the deadline for all 155 arbitration-eligible players who have been tendered contracts to either agree to terms with their teams, or file desired salary figures ahead of an arbitration hearing. At the hearing, an arbitrator chooses either the figure submitted by the player or by the team; they cannot choose any other dollar amount. Those hearings will take place in the coming weeks. It might not be the most exciting day of the offseason, but it is a very necessary one as we move toward spring, and it certainly results in a high volume of transactions. By our count, 140 players reached agreements; you can see them all in our Offseason Tracker. Just click on the player to find out the amounts. Here’s what we learned from the contracts that did — and did not — get signed last Friday.
Some Clarity Emerged Surrounding Potential Trades
Trade rumors continue to circle Mookie Betts, Kris Bryant, and Francisco Lindor, and determining an official salary number for 2020 could be useful in setting up potential trades. Teams aren’t going to let a few million dollars stand in the way when negotiating the trade of a superstar, but knowing that Mookie Betts will make exactly $27 million (breaking Nolan Arenado’s final-year arbitration record of $26 million) provides some clarity. It also ensures that any team that trades for him would not have to go through the arbitration process with a player they just acquired. Francisco Lindor is still two years away from free agency and his $17.5 million salary is a bargain for Cleveland, just as it would be for any team looking to trade for him. Kris Bryant’s $18.6 million figure is an exception here. While we now know what he’ll be making in 2020, his grievance against the Cubs for service time manipulation has yet to be decided, and the chance that Bryant could be a free agent after 2020 instead of 2021 will likely continue to prevent meaningful negotiations.
File and Trial Produces Settlements and Unnecessary Arbitration
Several years ago, teams began to adopt an arbitration strategy where they would elect not to negotiate single-season salaries once arbitration figures had been exchanged. This strategy, called File and Trial, meant that any agreement needed to come before the arbitration deadline. Exchanging figures was no longer another step in an attempted settlement prior to a hearing, but instead, effectively ended negotiations. The strategy was designed to spur early settlements and extract lower figures from players, as they needed to ensure that they submitted a figure likely to result in an arbitrator siding with them in a hearing. The strategy has been successful, but its utility will come into question over the coming weeks. Read the rest of this entry »
