Salary Arbitration? I'm lost.

[SalaryArb]

I've read the OOTP guide to it but I still don't really understand how this works. Please correct me if I'm wrong but players on the active roster automatically get new contracts via arbitration for up to 6 years of major league service time before becoming free agents correct?

So lets say I have a star player that has 3 years of major league service time, he's going to continue to get contracts via arbitration for 3 more years before becoming a free agent?

How do I approach signing him to an extension? Do I wait until he's set to become a free agent and then try to extend him or do I sign him to a big extension now or what? The OOTP guide says players become discouraged if they're given salary arbitration rather than a contract. Will he not sign with me if I wait a year or two to try to sign him?

Just kind of confused, I don't want to lose this guy to free agency but I don't want to sign him to a 5-6 year deal now if I can wait until year 5 and then sign him to a 5-6 year extension and keep him for an extra few years.

[SandMan]

There is no one way to offer arbitration or a contract. What I do is to keep them as cheap as possible, for as long as possible. In year 4, the first year of arbitration I just offer the contract that comes on the arb list. In year 5 or 6 if I want the player long term I will offer a 4 year deal for a little bit more than what they are asking for in arbitration. If the game shows that the player offer is 4.5M I will offer 5M for 4 years. I pay more for the first year but get the value of buying out their other arbitration years. This works for me. Another trick is to not give in to the contract amount that they want, offer a little more than arbitration and you should get the player to sign with your. Example, I have a player that is due to make 4.5M. I go to negotiate contract and he want s 10M a year for 4 years. No way in hell do I pay him this amount so I will offer the 5M for 4 years and see if he bites. You would be surprised in how many players will accept the low ball offer, especially if it is for more than the arbitration amount for 1 year. I hope this helps. I know a lot of players will give long term contracts during the arb years and they give in to what the player wants. This just makes the player ask for way to much. I like to tie my players up until age 28-29 and then see if they are worth the big contract, usually I end up trading these players for younger players with small contracts.

[Orcin]

Sandman has you covered with a good answer about the strategy so I will just try to address your specific questions.

Originally Posted by SalaryArb

players on the active roster automatically get new contracts via arbitration for up to 6 years of major league service time before becoming free agents correct?

The first three years of major league service are automatic contracts at the league minimum. You don't need to do anything. After that...

Originally Posted by SalaryArb

So lets say I have a star player that has 3 years of major league service time, he's going to continue to get contracts via arbitration for 3 more years before becoming a free agent?

In the early stage (day 1) of the off-season, you will be given a special screen to tender arbitration offers. You need to make a decision on each player, even if it is only to leave the default option (usually to tender an offer at the estimate). The game will identify "super-2" players that are early qualifiers, if you have any. Each player will get three cracks at the arbitration table before you risk losing him, assuming that you always tender an offer.

Originally Posted by SalaryArb

How do I approach signing him to an extension? Do I wait until he's set to become a free agent and then try to extend him or do I sign him to a big extension now or what?

This is the magic that separates the men from the boys. Sandman has given you great advice. My experience is similar.

I usually try to offer long-term contracts that will buy out the last two arbitration years and one or two years of free agency at a figure that has them reaching their current arbitration estimate by the end of the deal. For example, the player's current arbitration estimate is $4 million. I might offer a four-year contract at $2M, $2.6M for year 2, $3.3M year 3, and $4M for year 4. They won't get mad at that. They might take it, they might give a counter-offer, or they might say that they don't want a long-term contract right now. In any case, you will know what to do next.

Originally Posted by SalaryArb

The OOTP guide says players become discouraged if they're given salary arbitration rather than a contract. Will he not sign with me if I wait a year or two to try to sign him?

I have never failed to sign a player to a market-value contract in his final year of arbitration, assuming that he is happy otherwise with the team and his role.

Originally Posted by SalaryArb

I don't want to lose this guy to free agency but I don't want to sign him to a 5-6 year deal now if I can wait until year 5 and then sign him to a 5-6 year extension and keep him for an extra few years.

My advice here... don't get greedy. If this guy is really important, sign him as cheaply as you can and play roulette with someone else. If he is not critical, then wait and pay the arbitration for a year. See if he continues to meet your expectation. He might exceed though, in which case it will cost more. Don't be afraid to pay market value for top performers. Just avoid paying over market for average players, and you will be fine.

[SalaryArb]

What if the salary arbitration estimate is less than what he's asking for in an extension? Like substantially less. 3-4 M dollars less. I guess this will be his 5th year of arbitration so I kind of need to make a decision now.

Thanks btw

EDIT: Also any tips on talking them out of player options? If anything I want a team option.

[SandMan]

Originally Posted by SalaryArb

What if the salary arbitration estimate is less than what he's asking for in an extension? Like substantially less. 3-4 M dollars less. I guess this will be his 5th year of arbitration so I kind of need to make a decision now.

Thanks btw

EDIT: Also any tips on talking them out of player options? If anything I want a team option.

If the extension is more than the salary arbitration then what I do is offer over the arbitration amount but less than the extension request. I have found that the player will sign for much less than the extension request if you are above the arbitration request. I have seen players take a contract extension of 3-4M under their request. Don't worry about the high request, offer above the arbitration amount and you will get the player.

I have not found a way of changing the players mind over options. If they are requesting a player option they won't change their minds. The good news is players that are not requiring an option may sign a deal with the team option.

[olivertheorem]

I've gotten players to move off the player option. Granted, I'm usually changing it to a team option with a buyout of between 20-30% of the final contract year which might be too high, but it works.

[PSUColonel]

If it's a player I really like, and I think he's outperforming his arbitration estimate ( in the year before reaching arbitration) I will offer him a three year contract that's about a third higher in pay. My reasoning is fear that the arbitration estimate may go up significantly. DO others feel this is a good strategy?

[TGH-Adfabre]

Originally Posted by PSUColonel

If it's a player I really like, and I think he's outperforming his arbitration estimate ( in the year before reaching arbitration) I will offer him a three year contract that's about a third higher in pay. My reasoning is fear that the arbitration estimate may go up significantly. DO others feel this is a good strategy?

I have done that too. Sometimes I am so concerned that the 1st year of arbitration is going to set a very expensive precedent that I want to avoid. I will lock them up for 4-6 years, if I can, before their 1st shot at arb. I have signed 1 or 2 very favorable extensions after a players 2nd season, effectively buying out the 3rd league minimum contract but hopefully protecting my budget on the back end of the deal.

[SandMan]

Originally Posted by PSUColonel

If it's a player I really like, and I think he's outperforming his arbitration estimate ( in the year before reaching arbitration) I will offer him a three year contract that's about a third higher in pay. My reasoning is fear that the arbitration estimate may go up significantly. DO others feel this is a good strategy?

You can go to the salary obligation screen and see what his arbitration amount estimate is. I take this number, add a few hundred thousand on it and offer it as a 4 year contract extension. This covers his years of arbitration and first year of his FA period. Why offer more that that? I see so many players paying a guy 10-15M when the arbitration estimate is only 5-6M. Sign him for the arbitration estimate.

[RchW]

Originally Posted by PSUColonel

If it's a player I really like, and I think he's outperforming his arbitration estimate ( in the year before reaching arbitration) I will offer him a three year contract that's about a third higher in pay. My reasoning is fear that the arbitration estimate may go up significantly. DO others feel this is a good strategy?

I may not go 33% higher all the time but your strategy and reasoning is bang on IMO. I even wait until after the first arb award. It is critical to do it early in the season as a hot April can boost the estimate beyond realism.

I find you can get close to real life contracts where you buy out arbitration years and you may get one or 2 team option years as has been posted. I think the player personality ratings play a big part in how much of a discount you can get with arb eligible players.