Former Sports Agent on Salary Arbitrations
by Sam Reich
Baseball as a game and a business has been substantially affected by salary arbitrations, a process by which teams and players resolve salary disputes through an adjudicative process. This is the month when teams and players which have been unable to agree on contract terms exchange their salary figures. Hearings before impartial arbitrators will be held, if necessary, in February.
Brings back memories of my years of presenting such cases, mainly for players, but twice for teams. Indulge me while I reminisce about some generally challenging and interesting times. My first case in 1979 involved our claim for $42,000 and a dispute over $8,000. Now, the minimum salary is in excess of $500,000
My Brother, Tom, who represented many players, formed an arbitration team of which I was a part. Bill James, the famous statistical pioneer was a consultant during our early years. What an asset he was for our group! How much I learned from him! Our side prevailed in some precedent- setting hearings, such as for Tim Raines and Ruben Sierra.
When I represented teams late in my career, not so fortunate. Ryan Howard set some kind of SA record.
Nolan Arenado is seeking $30M against a team offer of $24M. The discussion will focus on the mid-point of $27M. More or less. There is some precedent at player’s figure, but later settlements regarding free agents such as Machado and Harper may prove to be decisive. Always a hazard for both sides: submitting figures in January; later contracts to be resolved in February.
Excuse the nostalgia. For some, the baseball salary season is as interesting as when the games are played. I prefer the games, but enjoyed my role in the salaries. Great people on both sides; skilled arbitrators. Above all, memories.
Sam Reich is a former prosecutor, defense attorney and pioneer sports agent. Sam is the author of “Waiting for Cooperstown,” about baseball greats who deserve enshrinement. This post was reprised from his Facebook page, dated January 12, 2019, by permission.
