Trade (sports)

In professional sports within the United States and Canada, a trade is a sports league transaction between sports clubs involving the exchange of player rights from one team to another. Though player rights are the primary trading assets, draft picks and cash are other assets that may be supplemented to consummate a trade, either packaged alongside player rights to be transferred to another team, or as standalone assets in exchange for player rights or draft picks in return. Typically, trades are completed between two clubs, but there are instances where trades are consummated between three or more clubs.

NHL trades only involve players who are under contract with their current teams or RFA players whose rights are owned by the team; free agent players, whose contracts have expired (July 1), cannot be traded by their former teams, and are free to join a different team.

In Major League Baseball, a player to be named later can be used to finalize the terms of a trade at a later date, but draft picks are not admissible as trading assets (with the exception of competitive balance draft selections awarded to teams). In Major League Soccer, besides current MLS players and draft picks, clubs may also trade MLS rights to non-MLS players, allocation money, allocation rankings, and international player slots.

A no-trade clause is an amendment to a contract, usually relevant in North American professional sports, wherein a player may not be traded to another club without the player's consent. Sometimes this clause is implemented by the club itself, but the vast majority are requested by the athlete and their sports agent to avoid being sent to a non-contending club or a club in an unattractive city. In many cases, these no-trade clauses are limited, where a club may be limited to trading the athlete only at certain times, or only to a certain team or geographical area.

No-trade clauses are found in most sports in North America, including Major League Baseball, the National Football League, the National Basketball Association, the National Hockey League, Major League Soccer, and some minor leagues around the country. Many European leagues, mostly professional soccer and basketball, also implement these contract amendments.

Each league usually has its own rules regarding these clauses; for example in the NBA, no-trade clauses can only be negotiated into contracts when a player has at least four years of service for the team he is signing the contract with and at least eight years total in the NBA. Other leagues have other varying rules, for example in MLB the "Ten and Five" rule gives most players limited control on their tradability once they meet the ten and five criteria, which means the player has played in the league ten seasons and with the current team for at least five.

In the NHL, these rights have been blamed for the lack of trades that have been pulled off in recent years, with critics citing examples where "done deals" were blown up by "selfish players." Despite having a no-trade clause in the contract, players have often demanded to be traded and then use the no-trade clause to select a preferable destination team, even though this would not give the maximum value to the team he is departing. To avoid such a potential situation an astute general manager would first demand that the player waive the no-trade clause before considering a trade, though this would reduce the player's leverage.

Often the no-trade clause is waived by the players themselves, usually in order to play for a contending team.