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Arbitration MLB Players MLB Teams

2008 MLB Arbitration Recap

The Philadelphia Phillies now boast a 7-1 lifetime record.

Until two days ago, the Philadelphia Phillies were invincible. They were undefeated. Fans loved them and swore to never boo them again. Okay, scratch the last sentence…a Philadelphia fan without an arsenal of “boos” is no true Philadelphian. Anyway, the Phillies are no longer flawless when it comes to the skill of winning an arbitration hearing. Ryan Howard put the team in its place when he and his sgent, Casey Close of CAA, not only squashed the Phillies streak, but also set the record for winning the largest 1-year arbitration accrued contract for an MLB player.

Team owners were 5-0 in 2008 arbitration hearings until Howard won his case against Philadelphia.

Brian Fuentes, Jose Valverde, Chien-Ming Wang, Felipe Lopez, and Mark Loretta all suffered losses when pitted up against their individual teams.

Team owners ended 6-2 overall.

The only other player to win a case that went to hearing this year was Oliver Perez.  He will receive $6.5 million instead of the $4.725 million that the Mets wanted to pay him.  Fransisco Rodriguez ended up losing his case, but still guaranteed himself a contract for the same value that Howard got for winning.  Instead of getting the $12.5 million he requested, K-Rod will earn $10 million next year from the Angels.

Thoughts

Overall, the teams dominated cases that went to arbitration yet again.  This trend is why many agents decide to settle prior to hearing, even if the number is sometimes a little lower than the midpoint (the midpoint between a $10 million and $12 million negotiation would be $11 million).  The player often benefits by settling at or a little below the midpoint as opposed to going to hearing and most likely losing, being forced to accept the team’s lower offer.  In addition, there are several other negatives of pursuing an actual hearing, including finding out about many flaws that the team sees in a player that may make such player think twice about his performance and affect him psychologically.

The big winner this year was definitely Ryan Howard.  Congrats to him and his team of agents.

By Darren Heitner

Darren Adam Heitner, Esq., is a preeminent sports attorney and the founder of Heitner Legal, P.L.L.C., a Fort Lauderdale-based law firm specializing in sports law, contract negotiations, intellectual property, and arbitration. He earned his Juris Doctor from the University of Florida Levin College of Law in 2010 and a Bachelor of Arts in Political Science, magna cum laude, from the University of Florida in 2007, where he was named Valedictorian of the College of Liberal Arts and Sciences. Admitted to practice in the state bars of Florida, New York, and the District of Columbia, as well as multiple federal courts, Darren also serves as a certified arbitrator with the American Arbitration Association.

As an adjunct professor, Darren imparts his expertise through teaching Sports Law at the University of Florida Levin College of Law and Name, Image, and Likeness (NIL) at the University of Miami School of Law in the Entertainment, Arts, and Sports Law LL.M. program. His scholarly contributions include authoring several books published by the American Bar Association, such as How to Play the Game: What Every Sports Attorney Needs to Know, and numerous articles in prominent publications like Forbes, Inc. Magazine, and Above the Law. His thought leadership in NIL has earned him recognition as one of the foremost experts by The Wall Street Journal, USA TODAY, and On3, and he has been lauded as a “power player in NIL deals” by Action Network and a “top sports trademark attorney” by Sportico.

Darren’s passion for sports law led him to establish Sports Agent Blog on December 31, 2005, initially titled “I Want To Be A Sports Agent.” The platform, created as a New Year’s resolution, has grown into a cornerstone of the sports agency community, offering in-depth analysis of industry trends, legal disputes, and agent-player dynamics. His commitment to the field is further evidenced by his representation of numerous athletes and sports agents, as well as his prior role as an Adjunct Professor at Indiana University Bloomington, where he developed and taught a course on Sport Agency Management from 2011 to 2014.

Darren’s contributions have been recognized with prestigious honors, including the University of Florida’s 40 Under 40 Award, the University of Florida Levin College of Law’s Outstanding Young Alumnus Award, and designation as the best lawyer in Fort Lauderdale by Fort Lauderdale Magazine. He remains an active voice in the sports law community, sharing insights through his weekly NIL newsletter and his X posts, engaging a broad audience on legal developments in sports.