Tarik Skubal awarded $32 million in landmark arbitration victory

DETROIT — Arguably the most consequential hearing in the history of MLB’s arbitration system has reached its conclusion.

Detroit Tigers left-hander Tarik Skubal will be awarded a $32 million salary in 2026. ESPN was the first to report the decision.

Skubal, the winner of back-to-back American League Cy Young Awards, smashes David Price’s $19.75 million record for the highest pitcher arbitration salary. He also surpasses Juan Soto’s $31 million mark for the highest salary for any arbitration-eligible player.

Skubal’s victory is most notable because it represents an unprecedented $22 million raise from the $10.15 million he made last season. Before Thursday’s verdict, Jacob deGrom held the record for the biggest year-over-year arbitration raise at only $9.6 million.

Skubal’s salary was decided by a three-person panel of independent arbitrators after a Wednesday hearing in Arizona. The panel, following the guidelines of MLB’s collective bargaining agreement, was tasked with settling the largest gulf in the sport’s arbitration history. The Tigers officially filed to pay Skubal $19 million, a number perhaps low for a two-time reigning Cy Young Award winner but also a figure not wildly out of line with arbitration precedent.

MLB’s arbitration system grants players the ability to negotiate salaries before reaching free agency, but also leans heavily on comparisons to other arbitration contracts. The system often holds players to small year-over-year raises while they are between three and six years of MLB service.

Skubal, represented by agent Scott Boras, broke such precedent by filing at $32 million, citing a rarely-used clause in the CBA and arguing players with five years of service time can compare their contracts to any player in the game, not only contracts decided via arbitration. Skubal was thus able to invoke comparisons to the likes of Zack Wheeler, who earns $42 million annually via a contract extension he signed with the Philadelphia Phillies. In 2026, Wheeler, deGrom, Gerrit Cole, Tyler Glasnow and recently signed Detroit Tigers left-hander Framber Valdez will be the only pitchers earning more than $32 million.

During the hearing, representatives for both Skubal and the Tigers made presentations arguing in support of their figures. Both sides were also allotted time to refute arguments from the other side. Skubal’s “special achievements” — including the fact he is the first AL pitcher to win back-to-back Cy Young Awards since Pedro Martinez — ultimately swayed the panel to his side.

After Thursday’s victory, only 15 players overall will earn more than Skubal in 2026, and all those contracts were either reached via free agency or contract extensions outside the arbitration system.

Skubal will be a free agent after the 2026 season and is likely on track to break Yoshinobu Yamamoto’s record of $325 million for the largest contract by a starting pitcher.

For now, Skubal’s case could serve as a landmark victory for players in a time of greater labor uncertainty. MLB’s CBA is set to expire Dec. 1, with owners expected to argue in favor of a salary cap but players seeking more equitable changes to MLB’s financial system.

Before Thursday, no pitcher had eclipsed Price’s arbitration win in 11 years.

Now Skubal is one of the highest-paid pitchers in the game, and his case could raise the arbitration ceiling for star pitchers such as Paul Skenes and others who will follow.