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OOTP does not reduce a players salary in arbitration. If the players arbitration value is listed as less then his current salary, then he'll probably be making that same salary next year.
The caveat is if you get a arbitration eligible player to sign an extension for less money then he's currently making (i.e. a guy making 375k signing a Minor League extension would get him back to 300k if he made the majors the next season).
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