Kirk McCaskill and the California Angels agreed to a one-year contractfor $967,500 on Friday.
McCaskill, a right-handed pitcher who made $430,000 last season, had been seeking $1.185-million in arbitration while the team had been offering $750,000.
He was 15-10 last season with a 2.93 ERA.
Fourteen players remain in arbitration, including the five who had hearings on Friday - Cubs shortstop Shawon Dunston, White Sox outfielder Ivan Calderon, Cardinals third baseman Terry Pendleton, Pirates outfielder Barry Bonds and Braves outfielder Lonnie Smith.
Oil Can Boyd accuses Red Sox manager of racism
BOSTON - Oil Can Boyd says Boston manager Joe Morgan didn't treat him fairly because he felt "blacks couldn't pitch," according to a Boston Globe report.
Boyd, who signed with Montreal during the offseason after eight years with the Red Sox, said some of his Boston teammates also had racist attitudes.
"I think (Morgan) believes black people have green tails and green blood," Boyd told the Globe.
"All I wanted was for Morgan to treat me with respect. Morgan was bad for me He felt blacks couldn't pitch. He felt they couldn't think out there on the mound."
Morgan told The Associated Press that he was confused by the comments attributed to Boyd.