Salary Arbitration in Sports (MLB & NHL)
In pro sports, 'arbitration' usually means salary arbitration — a process in MLB and the NHL where an arbitrator sets a player's pay when the player and team can't agree. It's a distinct, contract-based system, not the legal dispute-resolution arbitration used in courts and businesses.
In MLB's version, each side submits a figure and the arbitrator must pick one (final-offer or 'baseball' arbitration); the NHL uses a bracketed model. Eligibility depends on service time, and most cases settle before the hearing.
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Salary Arbitration in Sports (MLB & NHL) — questions answered
What is salary arbitration in baseball?
A process where an eligible MLB player and team each submit a salary figure and an arbitration panel picks one of the two (final-offer or 'baseball' arbitration). It sets the player's pay for the coming season.
How does MLB arbitration work?
Players with the required service time who aren't yet free agents can file. Player and team exchange figures; if they don't settle, a panel hears the case and must choose one of the two numbers.
Is sports salary arbitration the same as legal arbitration?
No. Salary arbitration is a labor/contract mechanism to set pay under a collective bargaining agreement. Legal arbitration resolves disputes as an alternative to a lawsuit. They share the name and a neutral decision-maker, but little else.
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Attorney.plus is not a law firm and does not provide legal advice. This is general information about arbitration, not a substitute for advice from a licensed attorney in your jurisdiction.