The use of arbitration for grievances and salaries in major league baseball has contributed to increased player freedom and marketability. Review of collective bargaining; and court decisions in this article illustrates the evolution of arbitration in baseball and its current status. Cause for concern is found over rapidly escalating salaries, loss of team loyalty, and rising ticket prices. Thus far, however, fan attendance continues at record levels and competition among teams has not been altered significantly. Negotiated limitalions on players' free agency status and the final-offer feature of salary arbitration should help to maintain a reasonable level of stability.