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Final Offer or Baseball Arbitration

This variation of arbitration entails each party providing a proposed monetary amount for the claim to the arbitrator(s) prior to the close of the hearings. At the conclusion of the hearing, the arbitrator(s) will adopt one of the proposed amounts in the award. This form of arbitration is used in baseball salary negotiations.

A related variation, often referred to as “Night Baseball” arbitration, occurs when the arbitrator(s) is not informed of the written proposals. Instead, the arbitrator(s) renders the award, which is then adjusted to conform to the closest of the parties’ proposals. Both variations eliminate an arbitrator’s ability to render compromise awards.