Orel Hershiser’s Arbitration Journey and Rise to MLB’s First $3 Million Man
When Orel Hershiser agreed to a one-year, $800,000 deal with the Los Angeles Dodgers on February 7, 1987, it wasn’t just a contract - it was a rare moment in baseball history. The deal represented a 20% pay cut from his previous salary, marking only the second time a player had taken the maximum allowable reduction through salary arbitration since the system was introduced.
Let’s rewind. Salary arbitration became part of Major League Baseball’s landscape in 1968, when the league and the Players Association hammered out their first Collective Bargaining Agreement.
Alongside arbitration came a rule: a team could cut a player’s salary by no more than 20% in a given year. That rule was put to the test with Hershiser.
After a dominant 1985 season - where Hershiser posted a sparkling 2.03 ERA, a 2.73 FIP, and a 1.03 WHIP across 239.2 innings - he was rewarded with a $1 million salary for 1986. But baseball is a game of adjustments, and the following year wasn’t quite as smooth.
In 1986, Hershiser’s ERA jumped to 3.85, his FIP to 3.36, and his WHIP to 1.29 over 231.1 innings. Still durable, still a workhorse, but the results weren’t quite the same.
The Dodgers responded with the maximum cut, dropping his salary to $800,000.
But Hershiser wasn’t done - far from it.
In 1987, he bounced back with a 3.06 ERA and a 1.21 WHIP over 231 innings, earning an All-Star nod and reestablishing himself as one of the game’s elite arms. That set the stage for what would become one of the most iconic seasons in Dodgers history - and one of the most lucrative in arbitration history.
1988: The Year of the Bulldog
What Hershiser did in 1988 wasn’t just special - it was historic. He threw 267 innings, posted a 2.26 ERA, a 3.18 FIP, and a 1.05 WHIP.
He led the league in wins (23), complete games (15), shutouts (eight), and innings pitched. But those are just the regular season numbers.
In October, Hershiser went next level. He dominated the postseason, leading the Dodgers to a World Series title and collecting both NLCS and World Series MVP honors.
Along the way, he picked up the Cy Young Award, a Gold Glove, and a second All-Star appearance. It was the kind of season that doesn’t just define a career - it redefines the market.
Breaking the Bank
Coming off that monster year, Hershiser entered arbitration asking for $2.425 million. The Dodgers countered with $2 million.
No matter who won the hearing, history was going to be made. The previous record for an arbitration award belonged to Don Mattingly, who earned $1.975 million in 1987.
Hershiser was about to leap past that.
Ultimately, both sides avoided arbitration altogether. Hershiser and the Dodgers agreed to a three-year, $7.9 million extension - a groundbreaking deal at the time. It included a $1.1 million signing bonus and base salaries of $2.4 million in 1989, $1.6 million in 1990, and $2.8 million in 1991.
Here’s where it gets historic: because the signing bonus was spread evenly across the three years, Hershiser’s 1990 salary totaled $3,166,000 - making him the first player in MLB history to earn over $3 million in a single season. His 1989 salary of $2.76 million was also a new record at the time.
A Dodgers Legend
Hershiser’s journey from a 17th-round pick in 1979 to the game’s highest-paid player is the stuff of baseball lore. He debuted with the Dodgers in 1983 and broke out in 1984, finishing third in Rookie of the Year voting. A year later, he was third in Cy Young voting and even earned MVP votes.
From 1987 to 1989, he made three straight All-Star teams and finished top-four in Cy Young voting each year. In 1993, he added a Silver Slugger to his trophy case - a rare feat for a pitcher.
Over 13 seasons with the Dodgers, Hershiser compiled a 135-107 record with a 3.12 ERA, 3.28 FIP, 1.21 WHIP, and 1,456 strikeouts across 2,180.2 innings. He made 353 appearances, 309 of them starts - and every one of them carried the same bulldog mentality that made him a fan favorite and a franchise cornerstone.
From arbitration cuts to record-setting contracts, Hershiser’s career is a masterclass in perseverance, performance, and timing. And in the ever-evolving world of MLB contracts, his story remains a defining chapter.