What is arbitration in MLB? 

On Tuesday, Rafael Devers and the Boston Red Sox reportedly reached a one-year, $17.5 million deal to avoid arbitration. This meant that both parties were able to come to an agreement, instead of remaining in a deadlock on a potential deal.

When a player and a team go to arbitration, both parties are given the opportunity to present their cases about what the contract value should be. Generally, teams and players prefer to avoid this route, because there is a high chance of the situation becoming shaky between the two.

From a team perspective, the club will have to prove to a panel of independent arbiters why the player is worth less than the player believes he is. This could damage the relationship between the team and the player, potentially resulting in the player seeking to pursue opportunities elsewhere.

"Alex Anthopolous and the Braves are doing what all MLB teams should be doing. Recognize talent when they’re young, and sign them through their arbitration years and beyond with deals that are too good to pass up. Red Sox should have done this with Betts and Devers,." Robbie Hyde tweeted.

There are some stipulations for players to be eligible for arbitration. To be eligible, players must have had at least three years of MLB service time but are not yet eligible for free agency. A player becomes eligible for free agency after six years of MLB service time.

Although it is preferable to avoid this, the process does benefit rookie players who have performed at a level exceeding their pay grade. This process will allow eligible players to be compensated for their production on the field. However, the whole situation could become messy rather quickly.

A famous example of this process hurting the relationship between the team and player came in the case of the Cleveland Guardians and Trevor Bauer. In an article with USA Today, Bauer said that the league's labor relations department – which represented Cleveland – ridiculed him for his “69 Days of Giving" charity campaign, along with his active role on social media.

"Trevor Bauer accuses Indians of 'character assassination' in arbitration hearing via @usatoday," ESPN's Buster Olney tweeted.

1973 was the beginning of the arbitration era in the MLB

The process became part of the collective bargaining agreement between the MLB and the MLBPA during the winter of 1973-1974. After approval by the league, union head Marvin Miller and the players agreed to the new legislation.