ider the financial position of a player, press comments or other testimonials concerning the performance of a player or the team (excepting awards for playing excellence), offers made by either the player or the owner prior to arbitration, the costs to the parties of their representatives (attorneys), and the salaries in other sports or occupations. The decision of the arbitrator is binding and limited to the either the salary request of the player or the salary offer of the owner.
The main reason that final offer arbitration is used in baseball is because labor experts believe it promotes bargaining efforts that often result in the parties resolving their disputes without resorting to arbitration. Knowing that there will be no compromise during arbitration, the parties are induced to present reasonable salary offers, fearing that the arbitrator could choose the other party's offer. Disagreement can lead to severe consequences. Thus, fear is the prime motivation factor in final offer arbitration. This fear is
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