Salary arbitration for MLB eligible players started on January 5th. Salary arbitration is a process by which supposedly underpaid players are forcibly granted raises from their current clubs, in the form of a one-year contract. Players eligible for arbitration are determined by the Elias Sports Bureau, which bases its ratings on certain statistical and service time requirements.

A player with more than 3 but less than 6 years of service time can file for salary arbitration.

There are two exceptions to this rule that was collectively bargained:

Clubs can offer salary arbitration to their former players who became free agents. That deadline is Dec. 1st. The last day that those players that were offered salary arbitration can sign with their former team is Dec. 7th.

A player declared as a "Super 2" is eligible for salary arbitration. A player with almost 3 years of Major League service time may become eligible for arbitration.

To qualify, a player must:

1. have at least 2 years of service, but less than 3, and;
2. have accumulated at least 86 days of service in the previous year, and;
3. rank in the top 17% of all 2-year players in service time.

The cutoff point generally falls between 2 years, 128 days of service and 2 years, 140 days.

Once a player files for arbitration, he will actively engage in salary negotiations with his team, and will in all likelihood come to an agreement, avoiding an actual arbitration hearing. During such a hearing, an arbiter, or neutral third party, hears the one-year salary demands of both the player and his club, and then chooses one side's demands over the other (this is called a "high-low" judgment).

Most players and teams will do what it takes to avoid an arbitration hearing - allowing an arbiter to decide your salary can be a scary thought. Last year, only 3 out of the 111 players that filed for salary arbitration wound up having their fates decided in an arbitration hearing. Also, an arbitration ruling consists of just a one-year contract, while most players will be looking for multi-year deals during the negotiating period.

This year's arbitration crop is loaded with talent. Some of the big-name players looking for big raises include Giants' ace and two-time Cy Young winner Tim Lincecum (who made just $650k in 2009), Mariners ace Felix Hernandez (made $3.8 million in 2009), and Marlins ace Josh Johnson ($1.4 million in 2009).

Other notable arbitration names include Red Sox closer Jonathan Papelbon, Rangers slugger Josh Hamilton, Tigers starter Justin Verlander and Phillies outfielder Shane Victorino.

Here's a comprehensive up to date list of all the arbitration eligible players courtesy of The Biz of Baseball.

The arbitration filing period runs from January 5th through January 15th, during which several dozen players will file for arbitration. On Jan. 19, those players that have filed for arbitration, but still haven't worked out a deal, will exchange salary figures with their clubs. For the following 11 days, more negotiations will take place, with nearly all eligible players signing contracts.

For those few players that are unable to come to an agreement with their respective teams, arbitration hearings will take place from Feb. 1-21. This process will no doubt be especially scary for clubs this year, with budgets being tighter than ever.

In 2008 Ryan Howard won a record $10 million arbitration case. The Phillies had offered $7 million to Howard, but the arbiter felt Howard's demand of $10 million was the fairer price. There are some big names on this year's list led by the biggest bargain in baseball the last two years, Tim Lincecum. Despite the economy and tighter MLB budgets it wouldn't surprise me if more than one player broke the current $10 million record. - Keith A. Baker

Keith is a sports agent in Stamford, Connecticut. His goal is to offer a unique insight to the world of sports. Comments in his columns are for entertainment purposes only and do not reflect the views and opinions of his firm or his client.

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