Atlanta Braves arbitration win one of many forcing MLB to rethink arbitration

 Atlanta Braves starter Max Fried denies any ill will over the arbitration process.
Atlanta Braves starter Max Fried denies any ill will over the arbitration process. / Dale Zanine-USA TODAY Sports
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In the days since the arbitration panel selected the Atlanta Braves contract in Max Fried’s arbitration hearing, players from other teams are openly condemning the process.

Last week, I wrote explaining why the arbitration system exists, how the process works, discussed the Fried decision, and concluded that an extension was possible. Shortly after that post went live, Fried told the world he harbored no hard feelings about the decision. Seth broke down his comments a few days ago and came to a less optimistic conclusion. Fried took the result in stride, Brewers' number one starter Corbin Burnes took the news personally.

As I noted last week, owners don’t like the system any more than the players, so it wasn’t a huge surprise when MLB announced that its newly formed Economic Reform Committee would look at ways to reform or replace the system.

Tensions Rising?

Today Ken Rosenthal suggested in The Athletic (subscription required) that the debate over MLB salary arbitration rulings could translate to another battle.

It’s true that, on a personal level, players don’t like arbitration. However, as a matter of policy, the MLBPA likes the system. A union spokesman told Rosenthal why the MLBPA supports arbitration.

“While we often disagree with individual hearing results, salary arbitration is a right that generations of players have fought for and defended despite. . .It empowers players who are under club control and their agents to negotiate a salary or, . . .have an arbitration panel step in to determine that salary.”

This year, 14 of the 33 players who filed for arbitration settled or signed extensions. Thirteen of the remaining 19 players went to a hearing ended up with the contract offered by the team. Only six players saw their offer accepted.+

MLB commissioner Rob Manfred is under pressure from small market teams to end arbitration
MLB commissioner Rob Manfred is under pressure from small market teams to end arbitration / Orlando Ramirez-USA TODAY Sports


The union has good reason to support a system responsible for raising player salaries across the board since 1973. The union would consider any change that increased salaries overall, but nothing MLB proposed does that.

WAR: This Isn’t What It’s Good For

During last year’s CBA negotiations, MLB proposed a plan to base raises on performance measured by WAR, and service time, with free agency starting at 29 1/2 years of age.

The last requirement doomed the proposal before the ink was dry because so many more players enter the league at 19 or 20 today. The idea of basing performance on any flavor of WAR or an average of the different flavors of WAR will never fly for a few reasons.

  1. All flavors of WAR use weighted values in the formula – formulas, formulae, never mind – and each formula includes data from another weighted formula.
  2. The owners can change the formula anytime they want. A few years ago, Baseball-Reference revalued existing WAR numbers because of changes to the formula. Fangraphs internal metrics in their version and changes them when they discover new data.
  3. Players are viewed differently by each flavor of WAR, skewing results to a metric controlled by an outside source.
  4. The websites mentioned want no part of it. 

After the union rejected MLB’s proposal to create a fixed salary level based on years of service time and performance based on WAR, an MLB spokesperson explained why they wanted to change it.

“We continue to believe that the salary arbitration system creates unnecessary acrimony between Clubs and players and wastes an enormous amount of time and money. We would welcome the opportunity to discuss changes to the system.”

MLB could develop a new version of WAR; I’m sure the union would embrace it . . . by the throat until it ceases to exist.

While MLBPA Executive Director Tony Clark isn't in love with arbitration, he understands its benefits.
While MLBPA Executive Director Tony Clark isn't in love with arbitration, he understands its benefits. / Gregory Fisher-USA TODAY Sports

Why The Atlanta Braves Are File and Trial

The Braves are a file and trial organization because history taught them that lowballing a player is a losing proposition.

When arbitration began, teams always tried to hold the bidding down, but it backfired. For the first ten years the process existed, teams lost more often than they won. Instead of making their best offer, teams would file, then try to negotiate a settlement in the middle.

Agents recognized this and started requesting richer contracts than they expected, knowing the team would head the number they really wanted. Front offices today know the market and the player’s value. When a file and trial team makes its final offer, it is their best offer. If the player rejects the offer, the club goes to arbitration confident in its position.

That’s a Wrap

Arbitration isn’t the best way to settle contract disputes, but it is better than anything suggested so far. Arbitration contracts don’t happen in a vacuum; every contract this year affects future contracts. Everyone knows this and plans accordingly.

The union encourages players in a position to do so, push the envelope and raise salaries for everyone coming after them. Teams like the Atlanta Braves take the same approach; they look for an answer that is fair now and best for the organization long term.

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