Changed 4/26
ARB CONTRACTS
Pre-arbitration extensions must wait until the player has one year of service time and must at least be equal to the arbitration estimate. Pre-arbitration contracts have a maximum length of 5 years.
If a player has gone through an arbitration hearing, the buyout of each future arbitration eligible year must be equal to or greater than the amount awarded to the player.
Example:
Player was awarded $7 million in arbitration in 2022
Correctly structured contract extension: 2023 $7m, 2024 $7m, 2025 $7m
Incorrectly structured contract extension: 2023 $6m, 2024 $7m, 2025 $8m or 2023 $4m, 2024 $5m, 2025 $6m
Contracts will be reviewed and altered to equal arbitration award
ARB CONTRACTS
Pre-arbitration extensions must wait until the player has one year of service time and must at least be equal to the arbitration estimate. Pre-arbitration contracts have a maximum length of 5 years.
If a player has gone through an arbitration hearing, the buyout of each future arbitration eligible year must be equal to or greater than the amount awarded to the player.
Example:
Player was awarded $7 million in arbitration in 2022
Correctly structured contract extension: 2023 $7m, 2024 $7m, 2025 $7m
Incorrectly structured contract extension: 2023 $6m, 2024 $7m, 2025 $8m or 2023 $4m, 2024 $5m, 2025 $6m
Contracts will be reviewed and altered to equal arbitration award
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