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Seitz decision
The Seitz decision was a ruling by arbitrator Peter Seitz (1905–1983) on December 23, 1975, which declared that Major League Baseball (MLB) players became free agents 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 a paragraph described as the "reserve clause" in every player contract. The paragraph as written allowed teams to renew a contract for a period of one year following the end of a signed contract. Owners asserted and players assumed that contract language effectively meant that a player could be "reserved," by a ballclub's unilateral contract renewal, year after year in perpetuity by the team that had signed the player. That eliminated all market competition and kept salaries relatively low.
The reserve clause was challenged in two Supreme Court cases—Toolson v. New York Yankees, Inc. in 1953 and Flood v. Kuhn in 1972—both of which upheld the reserve clause.
Dave McNally and Andy Messersmith both played professional baseball as starting pitchers. McNally first played professionally in 1961, and made his major-league debut in 1962 with the Baltimore Orioles. Messersmith first played professionally in 1966, and made his major-league debut in 1968 with the California Angels.
In 1975, Messersmith played his third season with the Los Angeles Dodgers, while McNally played his first season with the Montreal Expos, having been traded by the Orioles in December 1974. Both players had had their 1974 contracts automatically renewed by their teams for the 1975 season, on the basis of the reserve clause. Since neither signed a contract during that option year, both asserted that they were free to sign with other teams the following season (1976). The owners disagreed, arguing that under the reserve clause the one-year contracts were perpetually renewed.
The Major League Baseball Players Association (MLBPA) filed notices of grievance on behalf of both players on October 7, 1975. Hearings were held on November 21, November 24, and December 1, before an arbitration panel composed of MLB Player Relations Committee chief negotiator John Gaherin, MLBPA executive director Marvin Miller, and Peter Seitz—the chairman and impartial arbitrator agreed upon by the opposing parties.
Seitz ruled in favor of Messersmith and McNally on December 23, 1975, declaring:
The grievances of Messersmith and McNally are sustained. There is no contractual bond between these players and the Los Angeles and the Montreal clubs, respectively. Absent such a contract, their clubs had no right or power, under the Basic Agreement, the Uniform Player Contract or the Major League Rules to reserve their services for their exclusive use for any period beyond the renewal year in the contracts which these players had heretofore signed with their clubs.
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Seitz decision
The Seitz decision was a ruling by arbitrator Peter Seitz (1905–1983) on December 23, 1975, which declared that Major League Baseball (MLB) players became free agents 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 a paragraph described as the "reserve clause" in every player contract. The paragraph as written allowed teams to renew a contract for a period of one year following the end of a signed contract. Owners asserted and players assumed that contract language effectively meant that a player could be "reserved," by a ballclub's unilateral contract renewal, year after year in perpetuity by the team that had signed the player. That eliminated all market competition and kept salaries relatively low.
The reserve clause was challenged in two Supreme Court cases—Toolson v. New York Yankees, Inc. in 1953 and Flood v. Kuhn in 1972—both of which upheld the reserve clause.
Dave McNally and Andy Messersmith both played professional baseball as starting pitchers. McNally first played professionally in 1961, and made his major-league debut in 1962 with the Baltimore Orioles. Messersmith first played professionally in 1966, and made his major-league debut in 1968 with the California Angels.
In 1975, Messersmith played his third season with the Los Angeles Dodgers, while McNally played his first season with the Montreal Expos, having been traded by the Orioles in December 1974. Both players had had their 1974 contracts automatically renewed by their teams for the 1975 season, on the basis of the reserve clause. Since neither signed a contract during that option year, both asserted that they were free to sign with other teams the following season (1976). The owners disagreed, arguing that under the reserve clause the one-year contracts were perpetually renewed.
The Major League Baseball Players Association (MLBPA) filed notices of grievance on behalf of both players on October 7, 1975. Hearings were held on November 21, November 24, and December 1, before an arbitration panel composed of MLB Player Relations Committee chief negotiator John Gaherin, MLBPA executive director Marvin Miller, and Peter Seitz—the chairman and impartial arbitrator agreed upon by the opposing parties.
Seitz ruled in favor of Messersmith and McNally on December 23, 1975, declaring:
The grievances of Messersmith and McNally are sustained. There is no contractual bond between these players and the Los Angeles and the Montreal clubs, respectively. Absent such a contract, their clubs had no right or power, under the Basic Agreement, the Uniform Player Contract or the Major League Rules to reserve their services for their exclusive use for any period beyond the renewal year in the contracts which these players had heretofore signed with their clubs.