"On February 7, 1987, Orel Hershiser signed with the Los Angeles Dodgers for $800,000, taking a pay cut of 20% from his previous season's salary. It was only the second time since MLB implemented the rule that a player takes less pay due to salary arbitration. During the first Collective Bargaining Agreement between MLB and the Players Association in 1968, the max salary reduction allowed was set at 20%."
"During the 1985 season, Hershiser pitched at an extremely high level, posting a 2.03 ERA, 2.73 FIP and 1.03 WHIP in 239.2 innings over 36 games (34 starts). That earned him a salary of $1 million for the 1986 season. However, in 1986, Hershiser did not find as much success, pitching to a 3.85 ERA, 3.36 FIP and 1.29 WHIP over 231.1 innings. The significant drop in production led to the max-allowable pay cut through arbitration."
"Hershiser pitched 267 innings in 1988 and ended the year with a 2.26 ERA, 3.18 FIP and 1.05 WHIP. He also led the Dodgers to a World Series championship, won the National League Cy Young Award, a Gold Glove and was named an All-Star for the second time. Hershiser additionally led MLB in wins (23), complete games (15), shutouts (eight) and innings pitched, while earning NL Championship Series and World Series MVP honors for his playoff performances."
The 1968 Collective Bargaining Agreement established a 20% maximum salary reduction and introduced arbitration to MLB contract disputes. Hershiser earned $1 million after a dominant 1985 season but underperformed in 1986, prompting the maximum allowable arbitration pay cut to $800,000 for 1987. Hershiser rebounded in 1987 and delivered an exceptional 1988 campaign: 267 innings, a 2.26 ERA, and elite peripheral metrics. The 1988 season produced a World Series title, the NL Cy Young, a Gold Glove, All-Star honors, league-leading totals in multiple categories, playoff MVPs, and set up a record-setting arbitration salary request.
Read at Dodger Blue
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