Reserve Rule

The reserve rule, also known as the reserve clause, was a clause formerly included in professional athletes' contracts. It granted teams the exclusive right to automatically renew a player's contract, effectively binding the athlete to that team until they retired or were traded or released. This rule was a significant part of baseball's history, dating back to 1879, and it meant that a team could designate certain players whose services could not be offered to other teams.12

The reserve rule was a cornerstone of baseball's legal and economic foundation for many years. However, it was eventually challenged and significantly altered, leading to the development of free agency in professional baseball.2