we have the exchange of numbers, and that is a blind exchange.
So I am exchanging with a club a number that they don't know and
I don't know the club's number.
And so later in the afternoon after we've blindly followed these numbers you
find out where you stand.
And you create what's called a midpoint.
And that usually is the starting point for negotiations after the filing of numbers.
If you can't resolve the case,
the hearings then begin usually in the first week in February.
>> And the arbitrator then, just to repeat, you have the hearing,
you go through the process, it's either your number or
the team's number if you go the distance, correct?
>> That is correct, and that process was engineered and agreed upon by
Major League Baseball, and the Players' Association really to drive settlement,
because in an either-or arbitration, there's no splitting the baby,
so both sides are taking significant risk monetarily when they go to hearing.
>> Okay, now most recently, again if you can talk about it,
you're involved with the Josh Tomlin arbitration as I Recall, and,
of course, being a Cleveland Indians fan, what do you think, as you reflect on it,
were the no, no goes there?
>> [COUGH] Well, in the case of Josh Tomlin,
it was relatively simple.
We had a philosophical difference of opinion,
as to the players value, and that's what the process is really for,
when you have a philosophical difference >> And Josh Tommen's case presented some
unique challenges in that he was hurt for almost the entire platform season,
he only had one relief appearance in his platform season which made the case
a little bit difficult but we thought our filling number reflected it.
Unfortunately the arbitrators didn't feel the same way.
>> Now as you've represented, let's take them through the arbitration eligible
years, let's take them through and including free agency.
Let's talk about the guaranteed nature of these contracts.
You read about a Clayton Kershaw, you read about a Tanaka,
I mean we're talking guaranteed hundreds of millions of dollars.
Does that emanate also from the CBA?
It's different from the NFL where their contracts are not so guaranteed.
>> Sure.
In [COUGH] major league baseball,
contracts can be guaranteed or non guaranteed.
For example, a salary arbitration contract such as Josh Tarman's this year,
even in his salary arbitration lost.
His contract was not guaranteed.
Okay so and when a player's salary is salary arbitration eligible,
clubs don't necessarily have to guarantee that money.
Once you get the free agency then you have to get into guarantees.
But you can negotiate a guarantee for
salary arbitration eligible player when you negotiate the contract.
When it goes to actual arbitration it is a non-guaranteed contract.
But all multi-year contracts Are guaranteed.
So if you signed a two year deal, a three year deal, a Clayton deal,
that money is guaranteed pursuant to the collective bargaining agreement.
It is much different than it is in football.
>> And let's just go back to it's a smart team anymore.
When they spot a first or second year person, like a Carlos Santana here
in Cleveland, is it smart on the team side to ask you to be a proxy for
a team, to say look I want to grab him before he becomes arbitration eligible.
Is that a trend that you see across all the major leagues?
>> Sure, and you've seen it a lot this year.
Clubs are looking to lock in players at what their values are today.
Because the way the market is going, the values of players always increase and
they're going to continue to increase.
And so if you can lock up a player at today's value,
you are giving the team a great bargain and some players are willing to give
up some extra money in order to gain the security at a younger age.
So teams are identifying superstar players earlier,
they're making significant offers to them earlier.
You've seen players like Evan Longoria, and Jonathon Singleton most recently.
Jonathon Singleton hadn't played a day in the Major Leagues and
signed a five year contract.
>> Now how is that different from what we're seeing in the NBA, Jay,
where take less than you can or
you could otherwise get to stay in Miami Mister LeBron James?
What about the cap?
Is there some sort of hard cap or luxury tax that the team has to pay because over
the cap that's the interim effect that we're seeing in the NBA apparently.