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.

Background

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, 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.

Decision

Seitz ruled in favor of Messersmith and McNally on December 23, 1975, declaring:

Seitz's opinion further stated:

Aftermath

MLB appealed the decision to the United States district court for Western Missouri, but Seitz's ruling was upheld on February 3, 1976, by Judge John Watkins Oliver, and later by the Eighth Circuit Court of Appeals.

McNally and Messersmith were officially granted free agency on March 16, 1976. completing his 12-year major-league career with 344 games pitched (295 starts) and a 130–99 win–loss record. McNally did not play professionally after 1975, having finished his 14-year major-league career with 424 games pitched (396 starts) and a 184–119 record.

See also

  • Eastham v. Newcastle United, a 1963 court case in England
  • Koufax–Drysdale holdout, the first notable challenge by MLB players against owners in 1966, by Sandy Koufax and Don Drysdale.
  • Curt Flood, MLB player and plaintiff in Flood v. Kuhn, a 1972 case decided by the U.S. Supreme Court
  • Bosman ruling, a 1995 European Court of Justice decision that outlawed a similar reserve system in European football (soccer)

References

  • ESPN retrospective