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“Baseball” Arbitration in Boston

On the morning before a scheduled record breaking salary arbitration hearing last week, designated hitter, David Ortiz, 36, and the Boston Red Sox agreed to a one-year contract worth $14,575,000. The deal was midway between the $16.5 million he asked for last month and the $12.65 million submitted by the Red Sox, which matched his 2011 earnings.

“Baseball” Arbitration is a methodology that can be used in many different contexts in addition to baseball players’ salary disputes, and is particularly effective when parties have a long-term relationship. The procedural details are covered in an article by MDRS founder Brian Jerome, Baseball (Pendulum) Arbitration.