MLBPA thinks all 30 teams will take a “file-and-trial” approach to arbitration

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There’s something interesting deep in Ken Rosenthal’s latest notes column. It’s about arbitration, with Rosenthal reporting that the players union believes that all 30 teams will take a “file-and-trial” approach to arbitration this winter.

If you’re unfamiliar with this, it breaks down thusly:

  • In mid-January, teams and players who are eligible for arbitration will exchange proposed salary figures. The player says what he thinks he’s worth based on comparable players of his quality and service time and the team will propose a lower counter-figure;
  • Generally, the parties then use these proposals as negotiable figures and eventually reach a compromise deal, usually near the midpoint between the two figures, avoiding arbitration;
  • If a deal cannot be reached, they go to an arbitration hearing and arbitrators pick one of the numbers. They CANNOT give a compromise award. It’s either the higher player’s number or the lower team number.

In the past, a handful of teams — most typically the Blue Jays, Braves, Marlins, Rays, and White Sox — employed a “file- and-trial” approach, meaning that they treated the figure exchange date as a hard deadline after which they refused to negotiate and stood content to go to a hearing. As more teams have adopted this approach, there have been more arbitration hearings. As Rosenthal notes, last year there were more hearings than in any offseason for the past 25 years. Now, the union thinks, every team will do this. If they do, obviously, there will be even more hearings.

There is certainly an advantage to file-and-trial for a team. It makes the player and the agent work harder and earlier in order to be prepared to negotiate with the club before the file deadline. It also makes them work a lot harder to come up with a defensible filing number given that, rather than merely being an opening salvo in an extended negotiation, it’s something that they will certainly have to defend in open court. It’s also simple hardball. Teams have greater resources than the players and the agents and it’s less painful for them to pay for lawyers and hearing prep and to conduct the actual hearing. There’s risk to the team, of course — they might lose and pay more than a settlement would’ve cost — but teams are obviously concluding that the risk is worth it.

The only question I have is, if the union is right and all 30 teams will now proceed this way, how was that decided? Everyone suddenly, after several decades of arbitration, simply decided to take the same approach? Or was there, I dunno, a meeting in which the strategy was coordinated? Inquiring minds want to know!

 

RHP Fairbanks, Rays agree to 3-year, $12 million contract

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ST. PETERSBURG, Fla. — Reliever Pete Fairbanks and the Tampa Bay Rays avoided arbitration when they agreed Friday to a three-year, $12 million contract that could be worth up to $24.6 million over four seasons.

The deal includes salaries of $3,666,666 this year and $3,666,667 in each of the next two seasons. The Rays have a $7 million option for 2026 with a $1 million buyout.

His 2024 and 2025 salaries could increase by $300,000 each based on games finished in the previous season: $150,000 each for 35 and 40.

Tampa Bay’s option price could increase by up to $6 million, including $4 million for appearances: $1 million each for 60 and 70 in 2025; $500,000 for 125 from 2023-25 and $1 million each for 135, 150 and 165 from 2023-25. The option price could increase by $2 million for games finished in 2025: $500,000 each for 25, 30, 35 and 40.

Fairbanks also has a $500,000 award bonus for winning the Hoffman/Rivera reliever of the year award and $200,000 for finishing second or third.

The 29-year-old right-hander is 11-10 with a 2.98 ERA and 15 saves in 111 appearances, with all but two of the outings coming out of the bullpen since being acquired by the Rays from the Texas Rangers in July 2019.

Fairbanks was 0-0 with a 1.13 ERA in 24 appearances last year after beginning the season on the 60-day injured list with a right lat strain.

Fairbanks made his 2022 debut on July 17 and tied for the team lead with eight saves despite being sidelined more than three months. In addition, he is 0-0 with a 3.60 ERA in 12 career postseason appearances, all with Tampa Bay.

He had asked for a raise from $714,400 to $1.9 million when proposed arbitration salaries were exchanged Jan. 13, and the Rays had offered for $1.5 million.

Fairbanks’ agreement was announced two days after left-hander Jeffrey Springs agreed to a $31 million, four-year contract with Tampa Bay that could be worth $65.75 million over five seasons.

Tampa Bay remains scheduled for hearings with right-handers Jason Adam and Ryan Thompson, left-hander Colin Poche, third baseman Yandy Diaz and outfielder Harold Ramirez.