Tendering a contract in Major League Baseball (MLB) is a process that teams use to retain their players or acquire new ones. It involves offering a contract to a player that is either currently on the team`s roster or a free agent. In this article, we will discuss what tendering a contract in MLB means, how it works, and its significance in the league.
What is Tendering a Contract MLB?
Tendering a contract in MLB is a mechanism used by teams to retain their current players who are eligible for arbitration or to acquire new ones. It is an offer of a contract for the upcoming season, and it sets the salary the player will receive.
For players who are eligible for arbitration, meaning they have completed at least three years of major league service time, the team must offer them a contract by a set deadline, usually in early December. If the team doesn`t offer a contract, the player becomes a free agent and can sign with any team.
For players who have completed six years of major league service time and are not under contract for the upcoming season, they become free agents. In this case, teams can offer them a tender contract, which is a one-year deal. The player can choose to accept or decline the offer. If the player declines, they become a free agent and can negotiate with other teams.
How Does Tendering a Contract Work in MLB?
When a team tenders a contract to a player, they determine the player`s salary for the upcoming season. The salary is determined based on a player`s performance from the previous season and their service time. The team and the player can negotiate the terms of the contract, including the salary and any bonuses.
If the player and the team cannot agree on the terms of the contract, they can go to arbitration. An arbitrator then hears both sides` arguments and decides on a salary for the player based on the evidence presented.
Once a player signs their tender contract, they are considered under contract for the upcoming season. They cannot negotiate with other teams unless the team decides to trade them or release them.
What is the Significance of Tendering a Contract in MLB?
Tendering a contract is a crucial strategy for teams in MLB, as it determines the makeup of their roster and the salaries they pay to their players. Teams must balance their desire to keep players with their salary cap limits. The salary cap in MLB is not a hard cap but a luxury tax. If a team exceeds the luxury tax threshold, they have to pay a penalty to the league.
Therefore, tendering contracts is a strategic way for teams to manage their finances while keeping their core players. It also allows them to acquire new players and build their roster for the upcoming season.
Tendering a contract in MLB is a critical process used by teams to retain their current players and acquire new ones. It involves offering a contract to a player for the upcoming season, setting their salary, and negotiating the terms of the contract. By tendering contracts, teams can manage their finances and build their rosters to compete in the league.