The answer about becoming a free agent is solely based on his Years of ML Service. Default in
OOTP is 6 years if im not mistaken - so as long as any player doesnt have 6 full years of ML service, then they will not become FA's.
To get the automatic renewed league minimum - the player must not have MORE than 3 years of ML Service. After 3 years service, he will begin his eligiblity for arbitration, the player is auto signed with whatever the arbitor reccomends. After 3 years of this or the 6 years of ML Service, the player must be signed by you or becomes a FA.
The 3 year and 6 year is the default setting for
OOTP. If your in any online leagues it is best to get with the commissioner to see what he has it set at.