Quote:
Originally Posted by joefromchicago
In the reserve era, contracts were renegotiated (or, in most cases, re-imposed) annually, so there weren't many multi-year contracts. A team could release a player and pay only ten days' salary in compensation.
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That actually varied over the years the reserve clause was in effect. (Technically, it still is, but only applies to players with less than six years of Major League service.)
Before 1947, the termination pay was equal to ten days' salary (about 6% of the annual salary). From 1947-69 it was equal to thirty days' pay (about 17% of the annual salary). Starting in 1970 termination pay was equal to sixty days' salary (about 33% of the annual salary). Beginning in 1972 termination pay was sixty days' salary if released before May 15th and the full season's salary if released after that date. (May 15th was roughly one-quarter of the way through the regular season.) Finally, in 1976 players were entitled to their full salary for the season if released.
Note that players cut during the off-season or spring training received no termination pay at all prior to 1970. Starting that year, players were entitled to thirty days' pay if cut during spring training (off-season releases still received no severance pay). I'm not sure exactly when, but at some point offseason releases also became eligible for termination pay.
The current rules stipulate that a player subject to the reserve clause receives 30 days' pay if released during the off-season or the first half of spring training. If released during the second half of spring training the player is entitled to 45 days' pay. And if released during the regular season the player receives the remaining salary for the season.