volume 2, chapter 11 salary arbitration

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Volume 2, Chapter 11Salary arbitration

Pro Sport c8-salary 2

Salary arbitration Settle salary disputes between team and player

when negotiations for salary fail Submitted to neutral arbitrator, decide precise amount of

compensation Limited to issues of compensation and rights for players

and the team he plays for Eligibility for arbitration: determined by CBA

According to experience, sometimes performance Player’s case presented by agent/lawyer

Usually assisted by representatives from players’ association at the hearing

Grievance arbitration: interpret and enforce rights already created by CBA


Salary arbitration in MLB Eligibility: experience, performance The Association and the Major League Baseball

Labor Relations Department shall annually select the arbitrators

A panel of 3 arbitrators in each case In the event they are unable to agree by January 1 in

any year, they jointly shall request that the American Arbitration Association furnish them lists of prominent, professional arbitrators.

Role of arbitrators Consider Performance, leadership, public

appeal, length/consistency of career, previous salary, salary of similar players, physical/mental defects, team performance, attendance

NOT considered: financial position of player and team, press comments, testimonials

Select offer of either team or player Can NOT reveal reasons of decision



Super Two in MLB The service time cutoff for Super Two is

determined by the Major League Baseball Players Association each season, equating to the senior (service length資歷 ) 22% of players who have accrued between two and three years of service time and at least 86 days of service in the just-completed season two years and 122 days at the end of 2010 two years and 139 days at the end of 2009

Arbitration eligible from 3rd to 6th year FA after 6 years


Salary arbitration in free agents (before 2012)

Another class of arbitration-eligible players: free agents with >6 years of service Original team has option of offering arbitration A team must offer arbitration in order to get

draft-pick compensation if the FA sign with other team

If the FA accept arbitration, he is no longer FA and becomes bound to his current team (usually ned in prehearing salary agreement)

If the FA reject arbitration (in most cases), he can sign with any (including his original )team

Qualifying offer to FA (2013-)

teams have the option of making qualifying offers to any players who were with the team all season long Salary: average of the top 125 salaries from the

prior year $13.3 M in 2012, $14.1 million in 2013

signing a player who has rejected a qualifying offer lost a first-round pick rather than going to the player's old team, it just

disappears.



Salary arbitration in NHL

Eligibility: age, experience Roles of Arbitrator

‘only’ consider performance, compensation of players in similar situations

Determine 1- or 2-year contract, salary, bonus, explanation of reasons for decision

Salary can be either offers or ranging in between Decision is final and binding on the parties


Salary arbitration in NHL

Owners have walk-away right: right to reject award 3 times in 2 years, no more than twice in same

year, used only 2 times 1996-2003 Player become FA after rejection, If unable to

obtain better offer from other team, he can return to previous team with offer prior to becoming FA

Pro Sport c8-salary 14Comparison of salary arbitration between NHL and MLB

Encourage player-owner negotiation Very few filed cases go to arbitration

No exchange of briefs before hearing, NHL require parties to exchange briefs 48 hrs before hearing

Making reasonable offers NHL tend to make extreme offers, knowing

arbitrator likely to choose close to midpoint MLB tend to make reasonable offers: arbitrator

consider salary higher or lower than midpoint of both offers

Pro Sport c8-salary 15Comparison of salary arbitration between NHL and MLB

Consider performance, salary of comparable players NOT financial situation of teams Rich team pay more higher salary across league Not hold player responsible for financial health of team

Salary arbitration NOT set up players’ market, but rather follows it Based on comparable players’ salary, only following

trend set up individually negotiated contracts Few owners give high salaries, market value of players

rise at such a tremendously fast pace

volume 2, chapter 11 salary arbitration

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