Every year, during January and February, sports pages report ongoing negotiations between professional baseball teams and players. Repeatedly, the public is advised that absent a settlement, the labor agreement between the team owners and the players’ union requires that salaries of certain veteran players be determined by “Baseball Arbitration.”

Baseball Arbitration may take several forms. Most commonly, the arbitrator is restricted to making an award from one of the final offers presented by the two parties and may not award a different salary believed to be more appropriate. The arbitrator, in other words may not “split the baby.” In a variant, commonly called “night baseball arbitration” the arbitrator is not informed of the final offers of each party; the arbitrator simply enters a decision and the undisclosed offer closer to the arbitrator’s decision becomes the final award.

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