I have a player, Chip Street who is in his second year of arbitration.

http://www.whatifsports.com/hbd/Pages/Popups/PlayerProfile.aspx?pid=1481745

Last year, he tore his ACL and was out for over a year. It is two days before arbitration hearings and he is still out for 142 days. He is a decent first base men and I would prefer to not lose him, but at the same time I don't want to waste an arbitration season with him on the DL the entire time.

He is seeking a long-term deal of about 4.4 mil. I was wondering that if I released him and then tried to resign him if I could get him cheaper or if there is anything else I can do to avoid paying him arbitration and losing a year of eligibility.

ML service time is what determines arb. seasons.

He'll be "eligible" for arbitration as long as he's got between 3 and 6 seasons of ML service time.

If he has options, you can arb. him, and stach him in AAA (or AA, or wherever) on the DL. He won't accrue ML service time, keeping him from hitting the open market "early".

Considering the recent changes in the arbitration engine, I'd sign him to 1 year, and hope that being on the DL lowers his demands for next season.

I think I'd bail. As a 1b he probably isn't worth $4 million healthy and he is worth even less injured. Release him and then try to sign him on the cheap. Otherwise I think there are a lot of players that can give you similar production.

Your first baseman is good, but not great. I would let him walk. Unfortunately players like him can toil in the minors. I have a guy just like that now in my minors. He's good enough for the bigs, but I don't have room for him.

I'd go iain's route