MLB's Arbitration Process Explained

The likes of Mookie Betts and Kris Bryant are already re-upping with their respective clubs as the MLB offseason winds to a close, with the two agreeing to lucrative one-year deals.

Betts' deal was a record-setter too.

For such an integral part of the offseason, the arbitration process if often not fully understood thoroughly by a great deal of fans.

What is the Arbitration Process?

Players who have more than three but less than six years of MLB service time file for salary arbitration. Players and teams can settle on a contract before arbitration to avoid going into a "hearing," which is typically the case most of the time. According to MLB service time, a player registers a year under his belt by spending 172 days on the team's 26-man roster.

In an arbitration hearing, a player and a team will both make offers on how much they believe the player in question should earn for the upcoming season. Both sides are required to make reasonable offers and plead their case before a panel, which will then decide which of the two offers is the winner.

Article VI, Section E, Part 10 of the CBA states that the information allowed to be used inside an arbitration hearing includes past performance on the field and in the locker room, the length and consistency of a player's career contributions, the team's recent performance (i.e. record, improvement, and attendance), and salaries for players at a similar age or position.

Arbitration hearings can get really messy, as they involve an employer telling an employee why they shouldn't make as much as the employee believes. However, these meetings are a necessary part of navigating the MLB's financial landscape.