Just like the Yankees and Javier Vazquez, the Brewers and Trevor Hoffman came to a “gentleman’s agreement” that Hoffman will decline what at first glance appeared to be a shocking arbitration offer.
Hoffman made $7.5 million this season and under normal circumstances the Brewers offering him arbitration would essentially be like putting a one-year, $7.5 million deal on the table.
However, because Hoffman has already agreed to decline the arbitration offer there’s no risk of that for the Brewers and instead they’ll basically just get a free second-round draft pick should he sign elsewhere.
All three players are Type B free agents, so the agreements don’t change the fact that teams signing them can do so without forfeiting draft picks. Instead the only change is that their old teams can get the benefit of a compensatory draft pick without having to take the risk of truly offering arbitration. It’s definitely gaming the system and with at least two and possibly three or more cases this offseason it seems likely that MLB will (or at least should) attempt to close the loophole somehow going forward.