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In 1975, a Major League Baseball clause that kept players legally tied to their teams after retirement was dismantled, creating the modern concept of free agency.

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  1. When team owners created the reserve clause in 1879, the idea was that each team would control player salaries rather than the open market.

  2. Players fought the "reserve clause" for years, citing the Sherman Antitrust Act of 1890, but to no avail—in fact, the Supreme Court ruled professional baseball was neither interstate nor commerce in 1922.

  3. Players effectively unionized in 1966, and by 1975, an arbitration panel ruling led to the dismantling of the reserve clause, the only antitrust exemption in professional sports.

  4. After the 1975 elimination of the reserve clause, players became eligible for free agency upon contract expiration, increasing wages across the league.

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