I started getting into analytics this year, but I can't find how arbitration works. I know that it somehow decides a player's salary but I am not sure.

two types of arb: Club elected and player elected.

Player elected arb: team gets to submit a term and salary, player gets to submit a term and salary.

Club elected arb: player picks the term and salary but only the club picks the salary, they have to adhere to player term.

90 minute hearing and then the arbitrator picks what they deem to be a fair contract for both parties.

Thank you, but then after the hearing the contract that the arbitrator picked is the one that they have to agree to?

Yes, unless the contract is over $4.5 million, in which case the team is able to walk away from it and let the player become a UFA. An there’s a new rule this year, that once they go before an arbitrator, they can’t agree on an extension other than what is decided on by the arbitrator. Previously players & teams would sometimes go to arbitration, but decide on an extension before the arbitrator made his ruling.