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Business of Baseball Glossary
Written by Jeff Euston   
Tuesday, 30 January 2007 16:38
A club may unilaterally renew the contract of a player not yet eligible for arbitration if the club and the player fail to agree on a salary. A club may not renew a contract at a salary 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. See Maximum Salary Reduction.
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