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Pitcher Matt Garza and the Chicago Cubs avoided arbitration by agreeing to a one-year contract on Friday.

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As expected, first baseman Carlos Pena will not accept arbitration from the Chicago Cubs, SI.com reported Wednesday.

The deadline for accepting arbitration is 11 p.m. CT Wednesday. Third baseman Aramis Ramirez also was offered arbitration and is expected to decline. Accepting results in a one-year contract at a slight raise.

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By the end of business Tuesday, the Chicago Cubs and Chicago White Sox must decide whether to offer arbitration to their eligible free agents.

For the Sox, that list includes Paul Konerko, A.J. Pierzynski, J.J. Putz and Manny Ramirez .

The Cubs only have one free agent in Xavier Nady.

Here's the scorecard for the Sox today: I look for them to offer arbitration to Konerko and Putz, and not offer to Pierzynski and Ramirez.

The Cubs will not offer arbitration to Nady. He has no ranking, therefore there would not be compensation.

The system works this way: if the Sox offer arbitration to Pierzynski, and he signs elsewhere, because he's a Type-A free agent, the team that signs him would give up a No. 1 pick from the June draft of 2011 if they're ranked in the top 15 record-wise from June 10. If the team signing Pierzynski ranks 15-30 by record, that team only surrenders a No. 2 pick and the Sox would receive a third-round pick from the MLB draft not impacting the signing team.

The Sox would also be on the hook for a guaranteed year to Pierzynski if he decides to accept arbitration. The Sox would have to pay him between $6-$7 million in 2011.

The White Sox most likely will not offer arbitration to Pierzynski, although the Sox would miss out on compensation if he signs elsewhere. It gives Pierzynski a better chance to sign with another team.

In the case of Konerko, the Sox most likely will offer arbitration. Konerko is a Type-A free agent. He made $12 million in 2010. If he would accept arbitration from the White Sox, his arbitration number would come in between $14-$15 million in 2011.

According to sources, the Sox also will offer Putz arbitration on Tuesday. He made $3.125 million last season, and Chicago would be tickled if he decided to take arbitration and sign a one-year deal. Putz is a Type-B free agent, meaning no compensation would be forthcoming from the signing club.

The Sox will not offer arbitration to Ramirez, who made $20 million in 2010.

Players offered arbitration must respond by Nov. 30. Teams must offer their own players under contract arbitration by Dec. 2.

Because of a rule change three years ago, teams are still allowed to sign their own arbitration-eligible free agents even if they don't offer them arbitration.