The Orioles have until midnight tomorrow to decide whether or not to offer their two "Type B" free agents -- starter Kevin Millwood and reliever Koji Uehara -- arbitration. If it is offered and the player accepts, they'll be back with the Orioles on a one-year deal for 2011. If they decline it and sign with another club, the Orioles will get a draft pick as compensation.
Uehara, who is eligible for arbitration based upon a provision in his contract when he signed with the Orioles from Japan before the 2009 season, is really the only call the Orioles have to make. He made $5 million last year, and based on his impressive 2010 season, he'd likely get a decent-sized raise. There is no way of knowing for sure, but Uehara's price for 2011 could be in the $7 million to $8 million range. Still, I would think the Orioles, who are trying to re-sign the closer, would offer Uehara arbitration -- though I'm told that hasn't been decided.
As for Millwood, I really don't think there is a decision to be made. There is little to no chance the Orioles will offer him arbitration unless there is some agreement with his agent, Scott Boras, that he will decline it. Millwood lost 16 games last year and had a 5.10 ERA, arguably the worst season of his career. But he also made $12 million.
Millwood would certainly make a lot more money in arbitration than he will on the free-agent market this offseason, so it would make more sense for the veteran to accept it. However, he likely won't get that opportunity.
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