J.D. Davis fell through a loophole, per the Athletic's Pulse newsletter. J.D. Davis gets shafted For decades, the arbitration process has been a source of consternation in Major League Baseball. The system is unnecessarily complex, but boils down to this: Each offseason, players who have between 2.5 and 6 years of service time in the major leagues negotiate one-year salaries with their teams. If the sides cannot agree, they each propose what they deem a fair market salary. An arbitration panel then chooses which number is more reasonable. And thus we get to J.D. Davis, the Giants third baseman, who was surprisingly released yesterday — with a brutal loophole attached: Davis won his arbitration case against the Giants for a $6.9 million salary this upcoming season. The Giants filed at $6.55 million. Due to a clause in the new collective bargaining agreement, the Giants — who signed star third baseman Matt Chapman two weeks ago — were able to cut Davis and withhold most of his $6.9 million salary. They owe him a termination fee of about $1.1 million. How? In what was thought of as a CBA win at the time, one-year arbitration salaries became fully guaranteed. But the clause did not specifically guarantee salaries arrived at through hearings. The Giants became the first team to exploit the perfectly legal loophole, no matter how bad the vibes. So now, three weeks before the season, Davis finds himself unemployed, and the Giants barely owe him anything. Sucks, right? I asked Windup writer Levi Weaver for some smarter analysis than my own: “It does suck, because the new CBA was supposed to prevent this, guaranteeing those one-year arbitration-years contracts. But alas, we now have to wonder: Will we see teams negotiate in bad faith and go to a hearing on purpose, just to give themselves the option to cut bait at a fraction of the player's salary?”