Seitz decision
Encyclopedia
The Seitz decision was a ruling by arbitrator
Peter Seitz on December 23, 1975 which declared that Major League Baseball
players became free agent
s upon playing one year for their team without a contract, effectively nullifying baseball's reserve clause
. The ruling was issued in regard to pitchers Andy Messersmith
and Dave McNally
.
Since the 1880s, baseball owners had included what was referred to as the reserve clause in every player contract. The agreement allowed teams to renew a contract for a period of one year following the end of a signed contract. Since owners rarely allowed players to play without signing a new contract the process had the effect of holding the player to the team with which he first signed indefinitely. This eliminated all market competition and kept salaries relatively low.
In 1975
, Messersmith of the Los Angeles Dodgers
and McNally of the Montreal Expos
were the only two players playing on the basis of this reserve clause. Since neither signed a contract during that option year, both insisted that they were free to sign with other teams the following season. The owners disagreed, arguing that under the reserve clause the one-year contracts were perpetually renewed.
The two players submitted the grievance
to arbitration, and Seitz later issued his ruling that Messersmith and McNally were free to bargain with other teams because organized baseball could not maintain a player's services indefinitely.
MLB appealed the decision to the United States district court
for Western Missouri
, but Seitz' ruling was upheld on February 3, 1976 by Judge John Watkins Oliver
, and later by the 8th Circuit Court of Appeals
.Kansas City Royals Baseball Corp. v. Major League Baseball Players Ass'n, 409 F. Supp. 233, 261 (W.D. Mo. 1976) aff'd, 532 F.2d 615 (8th Cir. 1976) After all appeals were exhausted, Major League Baseball and the Major League Baseball Players Association
signed a new agreement in 1976
allowing players with six years experience to become free agents.
Arbitration
Arbitration, a form of alternative dispute resolution , is a legal technique for the resolution of disputes outside the courts, where the parties to a dispute refer it to one or more persons , by whose decision they agree to be bound...
Peter Seitz on December 23, 1975 which declared that Major League Baseball
Major League Baseball
Major League Baseball is the highest level of professional baseball in the United States and Canada, consisting of teams that play in the National League and the American League...
players became free agent
Free agent
In professional sports, a free agent is a player whose contract with a team has expired and who is thus eligible to sign with another club or franchise....
s upon playing one year for their team without a contract, effectively nullifying baseball's reserve clause
Reserve clause
The reserve clause is a term formerly employed in North American professional sports contracts. The reserve clause, contained in all standard player contracts, stated that, upon the contract's expiration the rights to the player were to be retained by the team to which he had been signed...
. The ruling was issued in regard to pitchers Andy Messersmith
Andy Messersmith
John Alexander "Andy" Messersmith is a former Major League Baseball right-handed pitcher. He was the 12th overall pick of the 1966 amateur draft by the California Angels...
and Dave McNally
Dave McNally
David Arthur "Dave" McNally was a Major League Baseball left-handed starting pitcher from until . He was signed by the Baltimore Orioles and played with them every season except for his final season with the Montreal Expos.McNally has the unique distinction as the only pitcher in Major League...
.
Since the 1880s, baseball owners had included what was referred to as the reserve clause in every player contract. The agreement allowed teams to renew a contract for a period of one year following the end of a signed contract. Since owners rarely allowed players to play without signing a new contract the process had the effect of holding the player to the team with which he first signed indefinitely. This eliminated all market competition and kept salaries relatively low.
In 1975
1975 in baseball
-Major League Baseball:*World Series: Cincinnati Reds over Boston Red Sox ; Pete Rose, MVP*All-Star Game, July 15 at County Stadium: National League, 6-3; Bill Madlock and Jon Matlack, MVPs-Other champions:...
, Messersmith of the Los Angeles Dodgers
Los Angeles Dodgers
The Los Angeles Dodgers are a professional baseball team based in Los Angeles, California. The Dodgers are members of Major League Baseball's National League West Division. Established in 1883, the team originated in Brooklyn, New York, where it was known by a number of nicknames before becoming...
and McNally of the Montreal Expos
Montreal Expos
The Montreal Expos were a Major League Baseball team located in Montreal, Quebec from 1969 through 2004, holding the first MLB franchise awarded outside the United States. After the 2004 season, MLB moved the Expos to Washington, D.C. and renamed them the Nationals.Named after the Expo 67 World's...
were the only two players playing on the basis of this reserve clause. Since neither signed a contract during that option year, both insisted that they were free to sign with other teams the following season. The owners disagreed, arguing that under the reserve clause the one-year contracts were perpetually renewed.
The two players submitted the grievance
Grievance
A grievance is a wrong or hardship suffered, which is the grounds of a complaint.-History and politics:A grievance may arise from injustice or tyranny, and be cause for rebellion or revolution....
to arbitration, and Seitz later issued his ruling that Messersmith and McNally were free to bargain with other teams because organized baseball could not maintain a player's services indefinitely.
MLB appealed the decision to the United States district court
United States district court
The United States district courts are the general trial courts of the United States federal court system. Both civil and criminal cases are filed in the district court, which is a court of law, equity, and admiralty. There is a United States bankruptcy court associated with each United States...
for Western Missouri
United States District Court for the Western District of Missouri
The United States District Court for the Western District of Missouri is the federal judicial district encompassing 66 counties in the western half of the State of Missouri...
, but Seitz' ruling was upheld on February 3, 1976 by Judge John Watkins Oliver
John Watkins Oliver
John Watkins Oliver was a United States federal judge.Born in Cape Girardeau, Missouri, Oliver received an A.B. from the University of Missouri in 1933 and an LL.B. from the University of Missouri School of Law in 1936...
, and later by the 8th Circuit Court of Appeals
United States Court of Appeals for the Eighth Circuit
The United States Court of Appeals for the Eighth Circuit is a federal court with appellate jurisdiction over the district courts in the following districts:* Eastern District of Arkansas* Western District of Arkansas...
.Kansas City Royals Baseball Corp. v. Major League Baseball Players Ass'n, 409 F. Supp. 233, 261 (W.D. Mo. 1976) aff'd, 532 F.2d 615 (8th Cir. 1976) After all appeals were exhausted, Major League Baseball and the Major League Baseball Players Association
Major League Baseball Players Association
The Major League Baseball Players Association is the union of professional major-league baseball players.-History of MLBPA:The MLBPA was not the first attempt to unionize baseball players...
signed a new agreement in 1976
1976 in baseball
-Major League Baseball:*World Series: Cincinnati Reds over New York Yankees ; Johnny Bench, MVP*All-Star Game, July 13 at Veterans Stadium: National League, 7-1; George Foster, MVP-Other champions:*Caribbean World Series: Naranjeros de Hermosillo...
allowing players with six years experience to become free agents.
See also
- Bosman rulingBosman rulingUnion Royale Belge des Sociétés de Football Association ASBL v Jean-Marc Bosman is a 1995 European Court of Justice decision concerning freedom of movement for workers, freedom of association, and direct effect of article 39 of the EC Treaty...
, a 1995 European Court of JusticeEuropean Court of JusticeThe Court can sit in plenary session, as a Grand Chamber of 13 judges, or in chambers of three or five judges. Plenary sitting are now very rare, and the court mostly sits in chambers of three or five judges...
decision that outlawed a similar reserve system in European football (soccer)Football (soccer)Association football, more commonly known as football or soccer, is a sport played between two teams of eleven players with a spherical ball...
. - Eastham versus Newcastle United 1963 court case in England
- Curt FloodCurt FloodCurtis Charles Flood was a Major League Baseball player who spent most of his career as a center fielder for the St. Louis Cardinals. A defensive standout, he led the National League in putouts four times and in fielding percentage twice, winning Gold Glove Awards in his last seven full seasons...
- Free agentFree agentIn professional sports, a free agent is a player whose contract with a team has expired and who is thus eligible to sign with another club or franchise....
- Marvin MillerMarvin MillerMarvin Julian Miller is a former executive director of the Major League Baseball Players Association , from 1966 to 1982. Under Miller's direction, the players' union was transformed into one of the strongest unions in the United States...