Orioles catcher Caleb Joseph will make $700,000 in 2017 after the club won its salary arbitration case Wednesday, according to an industry source.

Joseph, the team’s backup catcher, filed for a $1 million salary, and the team countered at $700,000. Under a new policy for the Orioles this year, the team said it would not negotiate once arbitration numbers were filed. If the two sides could not reach an agreement by the Jan. 13 deadline, then it would go to a hearing.

However, according to a source, the team offered a midpoint settlement before the hearing Wednesday morning in St. Petersburg, Fla. No settlement was reached, and the hearing went on as planned.

Joseph’s case was the first of three expected for the team this month, with reliever Brad Brach and starting pitcher Kevin Gausman also set for hearings.

It’s unclear whether either pitcher will get a similar offer as Joseph did to avoid the uncomfortable setting of a hearing, which forces teams to essentially call out negative qualities of their own players with the players present.

In most cases, a player with three years of major league service time is eligible for salary arbitration, though Joseph is an exception. Each year, the league designates a select group of players with two years of service time, known as "Super Two" players.

As someone whose service time was among the top 22 percent of players with two years or more in the league, Joseph earned an extra year of salary arbitration beginning this season. While he earned a raise from his $523,500 salary in 2016, the process hasn’t been kind to him so far.

After two seasons of strong performance both in the absence of and alongside Matt Wieters in 2014 and 2015, Joseph endured a humbling 2016 in which he batted .179 without a home run or RBI in 141 plate appearances. His year was marred by a testicular injury that cost him more than a month, and he spent part of August in the minors to regain his swing.

The Orioles didn’t think his past performance was worth an essentially doubled salary, and the process ended with a ruling in their favor.

Joseph now enters spring training as the presumed backup to Welington Castillo, though his spot could be in jeopardy if the team wants to keep Francisco Pena, who must be exposed to waivers before the team can assign him to the minors. Joseph has minor league options.

The Orioles have now won 11 out of 12 arbitration cases. The only loss was with former top pick Ben McDonald in 1995.

Before Joseph, the most recent case was outfielder Alejandro De Aza in 2015.

FanRag Sports first reported the decision.

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