1. Jody Blanke, Professor Computer Information Systems and Law 1

2. Characteristics of Arbitration Created by contract Dispute heard by impartial third party Legally binding decision Generally non-appealable “Favored by the courts”

3. Advantages of Arbitration Cheaper Faster More expertise involved

4. Baseball Arbitration Contractual procedure described in the Collective Bargaining Agreement (311-page PDF file) between Major League Baseball and the Players AssociationCollective Bargaining Agreement (311-page PDF file) Eligibility – players with at least three, but no more than six, years of Major League service

5. 2013 MLB Calendar Jan. 15 Salary arbitration filing deadline. Jan. 18Exchange of salary arbitration figures. Feb. 1-21Salary arbitration hearings.

6. 2012 Salary Arbitration Filings 142 players filed for arbitration 46 players exchanged salary arbitration figures 7 players had hearings

7. 2012 Salary Exchange Figures PlayerTeamPlayer Amt.Team Amt.Settled Amt. Alfredo Aceves Red Sox $1.6000MM$0.9500MM$1.2000MM Robert AndinoOrioles $1.6000MM$1.0000MM$1.3000MM Elvis AndrusRangers $3.6000MM$2.6500MMExtension Jose ArredondoReds $0.8750MM$0.7250MMExtension Andrew BaileyRed Sox $4.7000MM$3.3500MM$3.9000MM Daniel BardRed Sox $1.8250MM$1.4000MM$1.6125MM Brad Bergesen ‡ (Team wins)Orioles $1.2000MM$0.8000MM Emilio Bonifacio † (Player wins)Marlins $2.2000MM$1.9500MM$2.2000MM Craig BreslowDiamondbacks $2.1000MM$1.5000MM$1.7950MM Asdrubal CabreraIndians $5.2000MM$3.7500MM$4.5500MM Alexi CasillaTwins $1.7500MM$1.0650MM$1.3825MM Nelson CruzRangers $7.5000MM$5.5000MMExtension Brett GardnerYankees $3.2000MM$2.4000MM$2.8000MM Matt GarzaCubs $12.5000MM$7.9500MM$9.5000MM Alex GordonRoyals $5.4500MM$4.1500MM$4.7750MM Jeremy GuthrieRockies $10.2500MM$7.2500MM$8.2000MM Matt HarrisonRangers $3.5000MM$2.4500MM$2.9500MM Casey JanssenBlue Jays $2.2000MM$1.8000MMExtension Adam JonesOrioles $7.4000MM$5.0000MM$6.1500MM Garrett Jones ‡ (Team wins)Pirates $2.5000MM$2.2500MM Clayton KershawDodgers $10.0000MM$6.5000MMExtension John Lannan ‡ (Team wins)Nationals $5.7000MM$5.0000MM Tim LincecumGiants $21.5000MM$17.0000MMExtension Boone LoganYankees $2.1000MM$1.7000MM$1.8750MM

8. 2012 Salary Exchange Figures PlayerTeamPlayer Amt.Team Amt.Settled Amt. Boone LoganYankees $2.1000MM$1.7000MM$1.8750MM Jed LowrieAstros $1.5000MM$0.9000MM$1.1500MM Shaun MarcumBrewers $8.7000MM$6.7500MM$7.7250MM Russell MartinYankees $8.2000MM$7.0000MM$7.5000MM Nick MassetReds $2.9000MM$2.1000MMExtension Casey McGeheePirates $2.7250MM$2.3500MM$2.5375MM Miguel MonteroDiamondbacks $6.8000MM$5.4000MM$5.9000MM Brandon MorrowBlue Jays $4.2000MM$3.9000MMExtension Mike MorseNationals $5.0000MM$3.5000MMExtension Dustin MoseleyPadres $2.5500MM$1.5000MM$2.0125MM Jason MotteCardinals $2.4000MM$1.5000MM$1.9500MM Mike NapoliRangers $11.5000MM$8.3000MM$9.4000MM Jeff Niemann ‡ (Team wins)Rays $3.2000MM$2.7500MM David OrtizRed Sox $16.5000MM$12.6500MM$14.5750MM Hunter PencePhillies $11.8000MM$9.0000MM$10.4000MM Rafael PerezIndians $2.4000MM$1.6000MM$2.0050MM Clayton RichardPadres $3.1000MM$2.3500MM$2.7050MM Ryan RobertsDiamondbacks $2.2750MM$1.6500MM$2.0125MM Sergio RomoGiants $1.7500MM$1.3000MM$1.5750MM Anibal Sanchez † (Player wins)Marlins $8.0000MM$6.9000MM$8.0000MM Pablo SandovalGiants $4.2500MM$3.0000MMExtension Jose Veras ‡ (Team wins)Brewers $2.3750MM$2.0000MM Brad ZieglerDiamondbacks $1.9450MM$1.4600MM$1.7950MM

9. 2011 Salary Arbitration Results 131 players filed for arbitration 37 players exchanged salary arbitration figures 3 players had hearings Winners Player, club Asked Offered Russ Ohlendorf, PIT $2,025,000 $1,400,000 Hunter Pence, HOU 6,900,000 5,150,000 Losers Player, club ___ Asked _____ Offered Jered Weaver, LAA $8,800,000 $7,365,000

10. 2010 Salary Arbitration Results 128 players filed for arbitration 34 players exchanged salary arbitration figures 8 players had hearings Winners Player, club Asked Offered Cory Hart, Brewers $4,800,000 $4,150,000 Jeff Mathis, Angels 1,300,000 700,00 Cody Ross, Marlins 4,450,000 4,200,000 Losers Player, club ___ Asked ____ Offered Brian Bruney, Nationals $1,850,000 $1,500,000 Sean Burnett, Nationals 925,000 775,000 Wandy Rodriguez, Astros 7,000,000 5,000,000 Ryan Theriot, Cubs 3,400,000 2,600,000 B.J. Upton, Rays 3,300,000 3,000,000

11. 2009 Salary Arbitration Results 111 players filed for arbitration 46 players exchanged salary arbitration figures 3 players had hearings Winners Player, club Asked Offered Shawn Hill, Washington $ 775,000 $ 500,000 Dan Uggla, Florida 5,350,000 4,400,000 Losers Player, club ___ Asked ____ Offered Dioner Navarro, Tampa Bay $2,500,000 $2,100,000

12. Baseball Arbitration Facts Since 1974 (through 2012), clubs have won 291 arbitration hearings (58%) and players 214 (42%). Since 1990, about 90 percent of the players filing for arbitration settled before a hearing. Twice the salary figures submitted by players were lower than those submitted by the teams - Mike Edwards (1980) and Mike Flanagan (1982).