Split Contract

Definition

A split contract calls for a player to earn different salaries in the Majors Leagues and Minor Leagues. For instance, a player could earn $14,000 per month in the Minor Leagues but be paid a $535,000 salary for the Major Leagues. That player would earn the pro-rated portion of his Major League salary for any time spent on the Major League roster. That is determined by dividing his Major League salary by 183 (the number of days in the MLB regular season) and multiplying that number by the number of days spent on the Major League roster.

Examples

The Rangers avoided arbitration with catcher Chris Gimenez by agreeing to a one-year split contract with him in December 2015. The deal afforded Gimenez a $975,000 salary upon making the Major League roster.