Non-guaranteed Contract

Definition

Players who are on arbitration (unless specified at the time of the agreement), Minor League or split contracts are not fully guaranteed their salaries.

Players on arbitration contracts who are cut on or before the 16th day of Spring Training are owed 30 days' termination pay (based on the prorated version of his agreed-upon arbitration salary). A player cut between the 16th day and the end of Spring Training is owed 45 days' termination pay (based on the prorated version of his agreed-upon arbitration salary). The arbitration salary becomes guaranteed if the player is on the 25-man roster when the season begins.

A player on a split or Minor League contract will earn the prorated portion of his Major League salary for time spent on the Major League roster. Clubs can also sign players to non-guaranteed contracts but still place them on the 40-man roster. Those contracts become guaranteed upon the player making the Major League roster out of Spring Training, but he may also be cut prior to Opening Day. Such cases are identical to arbitration contracts in that the club would owe either 30 or 45 days' worth of termination pay, depending on the time at which the player is released.

Examples

Prior to the 2016 season, the Angels signed Craig Gentry to a split contract and Al Alburquerque to a non-guaranteed contract. Each player was added to the 40-man roster, but neither player's contract was fully guaranteed at the time of the signing. Both contracts were contingent upon the players making the Major League roster in Spring Training.