In February 2007, Grabow and the Pirates avoided arbitration, and agreed to a 1-year contract for $832,500. Grabow was also in a position to make $10,000 to $70,000 in incentive bonuses if he finished 20–35 games, but was not able to cash in as he only finished 14 games. He was also in a position to make an additional $10,000 to $45,000 in incentive bonuses if he made 75–85 appearances, but again was not able to cash in as he made only 63 appearances.