How Baseball Arbitration Found Its Way Into Resolving Commercial Disputes

In 1973, Major League Baseball ("MLB") established baseball arbitration, or BBA as a unique process for resolving salary disputes between teams and players within their first six years in the league. BBA involves a fast, equitable solution proposed by the parties, rather than a solution imposed by a third-party arbitrator. Some lawyers counseling parties to commercial disputes have taken notice how BBA can be both highly effective and economical when compared to traditional arbitration.

The BBA process is very appealing with respect to both simplicity and speed. If an MLB player and MLB team cannot agree upon the amount of the players salary, the dispute is subject to mandatory arbitration. The BBA process begins with the player and team exchanging offers to execute a contract for a proposed salary amount. If the parties agree to execute a contract based upon an amount following the exchange of proposals then arbitration is avoided. If not, the parties proceed to