In reading all the noise about the Varitek signing, I found myself wondering
why the writers were so certain he would have been offered close to $10m
from the Sox, when they clearly put his value at far less.
The reason, I was told, is the club can't offer less than a certain
percentage of the previous year's salary. But I did a wee little research
and found that wasn't the case.

>From How Baseball Arbitration Works, found here.
http://baseball.suite101.com/article.cfm/how_baseball_arbitration_works

The Club's Arbitration Offer Requirements

(1) A club must offer contracts to players under its control by no later
than December 12;

(2) If a player has filed for free agency, his former club must offer him
arbitration by December 1. If the player accepts by December 7, the player
is placed back on the team's roster, and the two sides may continue to
negotiate or go to an arbitration hearing. If the free agent player declines
the arbitration offer, the sides may continue to negotiate.

(3) The club's salary offer to a player under its control may not be less
than 80% of the player's total compensation from the prior year, and may not
be less than 70% of his compensation from 2 years earlier. These rules,
however, do not apply to free agents who are offered arbitration.


So Scott Boras may be a lot of things, but he's not that stupid.

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