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Contract/Arbitration Question


So I keep reading the Kennedy and Hudson have 4/5 years left on their contracts but then I see that they are arbitration eligible for the next few years. I am pretty naive when it comes to this kind of stuff so I figured I would ask for some clarity from the veterans. So what does this mean? If we don't extend Kennedy and Hudson's contracts after this season do they become free agents or do we have them locked up for years? Just very confused on the whole thing. Thanks.