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Major League Baseball and the National Hockey League Both Use

Question 5

Multiple Choice

Major League Baseball and the National Hockey League both use salary arbitration to settle salary disputes. Major League Baseball's form is unique. Please choose the answer below that provides the name of the type of salary arbitration MLB uses as well as how it works.


A) Interest arbitration. Arbitrators using interest arbitration choose the side with whom they share the greatest interest and believe is most deserving of the win.
B) Final offer arbitration. Arbitrators choose one side or the other's final offer. The arbitrator determines the midpoint between the two offers and decides whether the player is worth more or less than that midpoint. If more, the player's salary demand is chosen and if less, the team's demand is chosen.
C) Rights arbitration. Arbitrators choose the side whose salary numbers are correct relative to the market for comparable players. Arbitrators examine comparable player salary data and choose the demand that is closest to the market.
D) Data arbitration. Arbitrators base their decision on the sabermetric (statistical) data to locate a comparable player and then the arbitrator chooses the salary closest to the comparable player's market value.

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