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. Practically, this meant that although both the player's obligation to play for the team as well as the team's obligation to pay the player were terminated, the player was not free to enter into another contract with another team. The player was bound to either (A) negotiate a new contract to play another year for the same team or (B) ask to be released or traded.
Once common in sports, the clause was abolished in baseball in 1975, and other sports soon followed. The reserve clause system has, for the most part, been replaced by free agency.
Famous quotes containing the words reserve and/or clause:
“One should never make ones debut with a scandal. One should reserve that to give an interest to ones old age.”
—Oscar Wilde (18541900)
“Long ago I added to the true old adage of What is everybodys business is nobodys business, another clause which, I think, more than any other principle has served to influence my actions in life. That is, What is nobodys business is my business.”
—Clara Barton (18211912)