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Arbitration Hockey MLB Players MLB Teams

Analysis of “The National Hockey League and Salary Arbitration: Time for a Line Change”

Thanks to Sports Law Blog, I came across a very interesting article in the Ohio State Journal on Dispute Resolution titled The National Hockey League and Salary Arbitration: Time for a Line Change [Entire Note in LexisNexis]. Even if you have a LexisNexis subscription, reading the entire note produced by Stephen M. Yoost may require more time than you have available. That’s where this blog comes in and attempts to take away the parts that I find to be very interesting and informative in the Sports Business.

NHL

  • The average NHL salary has gone from $560,000 in 1994 to $1,800,000 in 2004 (good for agents…bad for the stability of the league).
  • Under the NHL’s new salary arbitration system (according to the new CBA), a player is eligible for arbitration after 4 years in the league.
  • In the NHL, teams have the right to use salary arbitration for players that earned more than $1,500,000 in the prior year.

MLB

  • As discussed in the post on Alfonso Soriano’s arbitration case, Major League Baseball uses a “Final-offer” arbitration system. This means that each side of a salary argument (player and team) propose what they feel is the correct salary figure. A panel of three abitrators must select either offer. They cannot choose a number that was not submitted by either side. Such a system is designed to fuel compromise and to cut down the actual number of cases that make it to a hearing.
  • In the MLB, arbitrators can only award single-year contracts if the argument goes to a hearing.
  • In the MLB, players often see their salaries rise even if they lose their arbitration hearings. Studies claim that those who lose hearings still average 150% higher salaries the next year. Players consistently double their salaries just by filing for arbitration.

General

  • Arbitration to settle salary disputes began in 1970. The NHL was the first league to put the practice to use. In 1973, Major League Baseball used it for the first time in a salary argument. Both leagues continue to use salary arbitration. The NFL (the most successful major sports business) and NBA do not.

Overall, it is a great article that examines the history of arbitration in the MLB and NHL, with its primary focus on the old system in the NHL compared to the new system created by the new Collective Bargaining Agreement. It claims that the NHL’s new arbitration system levels the playing field because the owners are able to file for arbitration if they feel that players are overpaid.  In the MLB, it really only works one way…a player files if he feels that he is undervalued.  If you have the opportunity to read the article in its entirety, I would recommend it.

[tags]arbitration, nhl, mlb, baseball, hockey, cba, collective bargaining[/tags]

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.