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Business of Baseball Glossary
Written by Jeff Euston   
Tuesday, 30 January 2007 15:41
In tendering a contract to a player (or renewing the contract of a player not yet arbitration-eligible), a club’s salary offer may not be less than 80% of the player’s salary and performance bonuses the previous year or less than 70% of his salary and performance bonuses from two years earlier.

The 80% requirement does not apply if a player won an arbitration award the previous year increasing his salary 50% or more.

For split contracts (paying a player one rate when he is in the Major Leagues and a lesser rate when he is in the minors), the maximum cut rule is 60% of the player’s salary from the previous season.
 
 
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