Under the club's bylaws, the existence of a dispute and its resolution are kept secret so long as the arbitrators' judgment is paid promptly. Consequently, unlike filing a claim in court, initiating an arbitration does not affect the parties' ability to borrow or enter into implicit capital market transactions during the pendency of the dispute, which, in turn, minimizes the financial harm suffered by the promisee. The reputation damage suffered by the promisee is reduced by the practice of keeping disputes secret after a judgment is rendered since other transactors may view mere participation in an arbitration as a signal that a dealer was unwilling to renegotiate deals when unforeseen circumstances arose; they might demand additional protections or charge a higher price when dealing with him in the future.

Lisa Bernestein, Opting out of the Legal Sys…, loc. 237