A Super Two Compensation Update

One major point of contention in this offseason’s collective bargaining impasse is compensation for young players. In the two sides’ competing proposals, the existing Super Two system, which each year awards an additional year of arbitration to some pre-arb players with two-plus years of service time, has come up repeatedly. Whether it’s being replaced with an algorithmic solution, increased pay for some players based on performance, or an expansion of arbitration within the two-plus group, compensating these pre-arb but multi-year players is a key point of debate as the lockout wears on.
If we want to understand this debate, we need to understand how Super Two players have been compensated in the existing system. Without that context, the dispute can feel more theoretical than consequential, and it is obviously very consequential to the players involved. To that end, I decided to look at the last eight years of Super Two awards and come up with a rough heuristic for how their compensation relates to their production in those years. From there, I’ve created some rules of thumb, which I’ll share with you here before we get into the nitty-gritty details of how I did the calculations. Here it is, separated out by player type:
Player Type | $/WAR Arb1 | $/WAR Arb2 | $/WAR Arb3 | $/WAR Arb4 |
---|---|---|---|---|
Batter | $1.08 | $1.86 | $2.66 | $4.19 |
Starter | $1.11 | $1.97 | $2.97 | $3.88 |
Reliever | $1.57 | $3.11 | $3.98 | $7.60 |
This table displays the amount of money a given player should make above the major league minimum based on how many times they’ve been through the arbitration process, their position, and their previous year’s production. Broadly speaking, the numbers make sense — players receive less per unit of production than they would in free agency, but their compensation gets closer and closer to free agency levels (roughly $6.5 million above minimum salary per WAR) as they go further into arbitration. Now let’s talk about how I got to these numbers, and the merits (and limits) of using this style of calculation to model arbitration awards. Read the rest of this entry »