Arbitration and Pending Free Agents

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Arbitration and Pending Free Agents
Patrick McDermott/Getty Images

Last night, Paul Hagen reported on MLB.com that MLB and MLBPA set the arbitration mark for the 2012-2013 off-season. In order to gain a compensatory pick for losing free agents, ballclubs must offer their pending free agents at least $13.3 million. Furthermore, in order to gain a compensatory pick for losing free agents, ballclubs must have reserved the rights of those players from the opening of the season (i.e., no players traded mid-season can gain a compensatory pick if they become free agents). If a player rejects a club’s $13.3 million arbitration offer and becomes a free agent, that player’s former club gains a compensatory pick in the supplemental first round (unless the player is not signed before the June draft).

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