What is arbitration in baseball?

Arbitration in baseball is a process used to settle contract disputes between players and their teams. It is a form of binding resolution where an impartial arbitrator hears arguments from both parties and determines a fair salary for the player based on their performance and market value.

Arbitration typically occurs when a player has between three and six years of Major League service time, but has not yet reached free agency. Players and teams must submit salary figures to the arbitrator, who then chooses either the player's proposed salary or the team's proposed salary.

If the player and team cannot agree on a contract before the arbitration hearing, the arbitrator's decision is final and binding. This process is meant to incentivize both parties to reach a compromise and avoid a contentious hearing.

Arbitration hearings take place in February and often result in players receiving significant salary increases. However, some players may choose to avoid arbitration by signing a contract extension before the hearing.

Overall, arbitration in baseball allows players and teams to settle contract disputes in a fair and efficient manner, while also providing players with an opportunity to be rewarded for their performance on the field.