I know, a complicated thread title, but in HBD, there are FA's who have decent ratings that have never played in the majors. They show up as MLB free agents with corresponding demands (usually somewhat commensurate with their ratings).

My question is this: say you sign one for 2 years (which I did in my first season (world year 4)). His contract runs out at the end of this season (world year 5). He does not show up on the FA list for next season. He does, however, show up on the arbitration list the following season after he presumeably will have had 3 years of big league experience (world year 7). What should I expect for world year 6? Will he automatically renew? Will he renew at his current contract value? If he doesn't arbitrate until year 7, what am I constrained to pay him in year 6?

Too long. But I'm almost certain the answer is 500k.

Mike is right.

Until a player has accumulated 3 years of MLB service, his contract can (and will, unless you release him first) be automatically renewed with a set percentage increase up until a max of $500K. If he had an expired contract for more than $500K, it will be renewed at the max automatic amount.